How One Redditor Pulled a “Costanza” and Netted $141,588 by Betting Against WallStreetBets
In a twist worthy of Seinfeld, a Reddit user, vuw960, decided to go against the herd on the infamous subreddit WallStreetBets (WSB) and struck gold, rather, Tesla stock. While WSB members anticipated Tesla’s Q3 earnings report would disappoint, vuw960 decided to do the exact opposite, placing a high-stakes bet that Tesla’s stock price would rise. And it paid off big time.
The Trade Details
On October 23, vuw960 invested his last $10,000, buying 46 call options for Tesla (TSLA) at an average price of $2.34 per contract. Each contract covers 100 shares, giving vuw960 substantial leverage on his investment with a breakeven price of $232.34 per share. As Tesla stock rose to $259.50 at the time of his screenshot, his position’s value skyrocketed to $141,588.
Tesla’s Q3 Earnings and Stock Surge
Tesla stock (TSLA) surged on Thursday after investors focused on the positives from its mixed third-quarter earnings results. Investors cheered beats on adjusted earnings per share and a higher-than-expected gross margin. Tesla also announced that its cheaper electric vehicle, expected to expand market accessibility, is on track for production next year.
CEO Elon Musk stated that Tesla’s volume growth could be 20%-30% next year, a bold projection that led TSLA to close up nearly 22%, marking its best trading day since 2013. The significant jump in stock price also added billions to Tesla’s market valuation.
Tesla’s revenue for Q3 came in at $25.18 billion—slightly below Bloomberg’s $25.4 billion expectation but a clear improvement from $23.4 billion in Q3 of the prior year. Adjusted earnings per share hit $0.72, well above the $0.60 forecast. The highly anticipated gross margin was 19.8%, comfortably exceeding the 16.8% analysts had anticipated, reflecting Tesla’s focus on efficient production and reduced costs.
A True “Costanza” Move
In a scenario reminiscent of Seinfeld’s George Costanza, who found success by doing the opposite of his instincts, vuw960 gambled against the typical sentiment on WSB. Instead of following the WSB crowd, vuw960 chose to “inverse” their negative outlook on Tesla’s earnings call, resulting in his 1,300% gain.
The Hilarious Kicker
But don’t go congratulating him yet; there’s a wrinkle: since vuw960 poured every cent into this trade, his account was flagged for day trading restrictions, and now he can’t close his position to lock in his gains. This restriction means his remarkable winnings are at risk, as any change in Tesla’s stock price could affect his option’s value before it expires today, on October 25. So he did an inverse bet of what WSB was doing, he did it in the most WSB way imaginable.
The Community’s Reaction
In true WSB fashion, the comments are full of admiration, disbelief, and cynicism:
“Pay the taxes first!” – ProfitConstant5238
“You spent $10,000 on a lottery ticket and won. Congratulations!” – gummibearhawk
“See you behind the Wendy’s.” — _CMDR_
Despite their often abrasive tone, the reactions on WallStreetBets capture a blend of envy, amusement, and a bit of that fatalistic WSB bravado.
Conclusion: Will He Cash Out or Crash Out?
As of now, it’s anyone’s guess if vuw960 will be able to secure his six-figure winnings. But whether or not he walks away with a profit, his story is already a prime example of the high-stakes roller coaster that is WallStreetBets—a community where, just like in Las Vegas, fortunes can be won, lost, and everything in between. So let’s keep our eyes on the Tesla stock ticker today, and keep vuw960 in your prayers.