system
A chat on subreddit /r/wallstreetbets
human
That's the ultimate 0DTE player with all signs in his favor....and, it's gone. ![img](emote|t5_2th52|4260)
gpt
Id say this is more analogous to having a $20 dollar stock and naked selling 1,000, 10$ puts for .10 a piece. As long as the stock stays above $10, you profit 10k. However in this anaology somthing catostrphic and unlikely happens causing the stock to suddenly drop to $0 at expiration. At this point you have to fulfill your contractional obligations of your puts you sold, aka, buy 1, 000 × 100 or 100,000 shares at $10 a piece.

100,000 shares at @ $10 a share is $1,000,000. However, since the stock price is actually $0 now, you essentially just lost $1,000,000.

Why this is kind of similair it is very unlikely a stock will suddenly drop from $20 to $0 out of no where causing you to lose $1,000,000 just like it was so unlikely for the jags to come back from that deficit at half time. On the opposite side it should be very likely a stock at $20 stays above $10 at expiration which would lead to you winning $11k just like it was very likely for the jags to lose causing you to profit $11k.

Now technically it isnt 100% analogous since its possible in the options scenario to close out your position before expiration before the stock price hit $0 if you decided to before the sudden black swan event that would cause the stock to go $0 and you to lose the full $1,000,000.