The Best and Worse Trade of my Life All in one Day

You witnessed on of the best trades on my life on the same day as one of the worse trades of my life was happening. I say one of the worse days because I remember the worse trade of my life which was only a few months ago and that stock was Tesla (TSLA). Although Tesla was the single worse trade of my life, this one was a close second.

Back to the trade. I was in deep with calls on Facebook the day it tanked. That day was June 26,2020. It’s a day the avalanche started. So what was the avalanche. The avalanche was the advertisers who advertises on Facebook. While Facebook has over 8 million advertisers on the platform, most being intermediate to small business; the major advertisers like Coke, REI, Unilever, Pepsi, and many more decided to pull back ad dollars on Facebook and also Twitter(TWTR) as well. The reason being because a movement called #stophateforprofit which condemns how Facebook allowed posts that incited violence on protesters fighting for racial justice; named publications affiliated with white nationalist groups as trusted news sources; and turned a blind eye on voter suppression, in its call for a widespread boycott.

As this movement gain traction, more and more advertisers got on board with pulling their ad dollars off of the Facebook platform. The suspension of ad dollars is only suppose to be for the month of July but some advertisers have pulled it for the year or indefinitely. The bigger advertisers also made it clear that they are not necessarily supporting the #stophateforprofit movement but doing it on their own reasons.

I personally believe many of the companies are using this movement to suspend ad dollars because they are in a mini cash crunch and is using movement to hide the fact that they was going to halt social media ad dollars anyway.

As the Stop Hate for Profit movement gained steam, so did the down movement of Facebook stock. Already being down 5 percent from the new highs in the previous days, Facebook stock tanked nearly 9 percent on that dreaded day. I lost big. It was easily five thousand on one account. Add in the other accounts, it was closer to the 10 thousand mark.

Now for the best trade. Although I was getting my head handed to me on a platter, I didn’t panic. I instead brought more Facebook stock in the form of Long Option Calls or Leap Contracts. I bought as much as I could at the time. Maybe up to 10 contracts across all accounts. That day was my worse trade and also my best trade because the day I bought up to 10 leap contracts, that was the bottom in Facebook stock. Facebook bottomed at $207.11 and today, July 1, 2020 it is now trading as high as $232.39.

Some traders may look at this trade as not such a big deal. But it is to me. I showed growth in my trading that day on not to panic. I also don’t trade aggressively, but I seen the moment and recognized that the market was giving Facebook a huge sale and recognizing that fact, I loaded up the boat and as of today, it seems it’s paying off big time.

So to sum this story up, don’t panic just reevaluate. If your thesis of the stock your trading remains the same, take the action that supports your thesis. The stock market is usually right, but when it is wrong it’s your opportunity to profit from it.