Huh? Still don’t get it? If the longs are wrong, the shorts are correct. If the shorts are correct, the longs are wrong.
The problem with long calls or long puts, many new retail option traders tend to be too aggressive, hoping for the jackpot i.e. invest a small sum and hope for a big pay back. So they took the risk of long very OTM calls or puts. That is, they got the direction right but over-estimate the quantum of change, be it appreciation or decline. Calls or puts, the collapse of IV after earnings or an event, is more than the change in delta, hence the calls or puts would decline in price for too OTM calls or puts.
I sold 1/3rd AMD and bought FB with the proceeds (during the FB dip recently). So, still long but hold 2/3rds of before. Btw my AMD buying price is @$10… so I’m ok at this time.
I know you’re a former INTC guy, what do you think? INTC can eat AMD for lunch anytime i.e. they have a huge pipeline and can whip it out anytime to crush AMD?