How Not To Be Dumb Money

6 min read

Gamestop Meme-ified Put Option Cookie Experiment Edition 2.0 “The stock market is a device for transferring money from the impatient to the patient” — Warren Buffett At first glance any Buffett-ism seems irrelevant to the bubblicious world of r/WallStreetBets and its short-termist meme-ified Gamestop trade. What does Gamestop have to do with value investing? Well, if you’re patient, a faculty in terribly short supply in Gamestop World, you may find free Alpha in out of the money Gamestop put options lying around waiting to be picked up. Consider this options trade as the adult version of the children’s cookie experiment: are…...

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Lester Golden I'm a NYer living in Latvia since 2005, after living in Italy from 1989-2005, Spain and Catalonia in 1976, 1980-81 and 1986-87, southern France the summers of 1985 & 1986 and Portugal in the Carnation Revolution summer of 1974. Conversational Russian and Latvian are my 6th and 7th languages. I did channel check research for one hedge fund and a Wall St research firm from 2009-12 and taught Behavioral Investing, Entrepreneurship and History at Riga Business School from 2012-16. Title of my investments course: The History of Human Financial Stupidity--Including Mine. From 1998-2007 I invested in real estate in Latvia and Estonia. Since 2015 I've invested 7 early stage startups, none of which have yet failed, but some of which inevitably will. Best trade: shorting 20m JPY with spot and options trades on FXY in early 2013 Worst trade: long yield-trap MLPs in 2015 My wrestling match with The Great Humiliator: ongoing.

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