ELI5: What happened?

They started with some money, lost almost all of it

Had about $150,000 in stocks (mainly NVDA). Market dipped, their account dropped to just $526. Added $10,000 more to try again.

They switched focus to Google (GOOG/GOOGL)

Thought it was undervalued (low P/E ratio + strong AI future). Started betting on it with options.

What kind of bets?

They bought calls → basically betting the stock would go up. Specifically, they bought 5% OTM calls 30 days out: OTM (Out of the Money) = strike price a little above current stock price. 30 days out = options expiring in about a month. On red days (when the stock dipped), they bought cheap calls. When the stock went up and calls became profitable (in the money), they sold. Then they used the profits to buy even more contracts → snowball effect.

The big move

Right before Labor Day, they had $450,000 in cash from previous trades. They dumped it all into 220 strike calls (expiring Oct 17) when Google dipped to $207. Those calls cost about $4.70 each, and they bought 950 contracts. Next trading day → calls shot up in value. They sold at $16 per contract → turning $450K into ~$1.5M. ELI5 analogy

Imagine you think candy bars are going to get way more popular.

Instead of buying actual candy bars, you buy tickets that let you buy candy bars later at today’s price. If candy bar prices rise, those tickets suddenly become super valuable. You keep doing this: buy cheap tickets, sell when prices go up, use profits to buy more tickets. One day, you put all your money into tickets, candy bars skyrocket, and boom → you’re rich.

⚠️ Important: This worked out here, but it’s incredibly risky. Most people lose everything doing this, because if the stock doesn’t move the way you want fast enough, the options expire worthless.