Investing Diary (Week 2): Witnessing a Short-Driven Selloff and Tightening Liquidity
Monday: I open a PLTR short put. Next thing you know, Burry calls PLTR/NVDA overpriced and—boom—both tumble ~8% while the market sheds 2%. The percentages look tame, but my buying power swan-dives from ~50% to flashing red. Welcome to this week’s thrill ride: Options Boot Camp. What struck me most is how demanding options are on liquidity compared with stocks. With equities, running out of cash simply means pausing; even in the rough April 2025 tariff episode, I could choose inaction. Stocks are like buses—you miss one, just wait, another comes. Options are like a Swiss-Army knife—with a surprise boomerang. Run out of cash in stocks? Meh. In options: (1) go negative BP and the broker brings the broom; (2) assignment hogs your cash; (3) financing interest says hi, everyday! Because ris