In December 2017, the crypto boom reached its peak, with Coinbase, a major American crypto exchange, experiencing a surge in downloads. As the value of bitcoin and other digital tokens plummeted in January 2018, traders sought alternative speculative outlets. Options trading emerged as a new frontier, particularly among the WallStreetBets community. Despite warnings from experienced traders about the risks, newcomers enthusiastically embraced options, drawn by the allure of quick profits and the thrill of high-stakes trading. This phenomenon was fueled by the elimination of commissions by Robinhood and the gamified nature of their app.

The intersection of social media and trading platforms created an environment where traders shared their losses as a badge of honor. This culture was exemplified by the term "tendies," referring to the chicken tenders a young trader might receive from their mom as a reward. The attitude was encapsulated by a trader who made and lost a substantial amount, stating, "At The End of the Day, Money is Just Paper." This nihilistic approach was characterized by a willingness to take risks and embrace losses as a means to fit in with the community.

The WallStreetBets community was marked by a mix of experienced traders and newcomers. Jaime, the founder, had initially envisioned a "serious forum for learning," but the site evolved into a hub for extreme risk-taking. Jordan, a moderator, acknowledged that the community dynamics were rooted in a desire for excitement and a sense of belonging. He noted that people would engage in risky behavior to achieve a fleeting sense of accomplishment and online recognition.

The allure of options trading was further intensified by the instant gratification and addictive nature of Robinhood's app. The company's gamification tactics, such as digital confetti and the removal of friction points, contributed to an environment where traders were prone to impulsive decisions. This was particularly true for young men, who are more likely to engage in risky behavior when in the company of peers. The intersection of social media, trading platforms and human psychology created a perfect storm that fueled the rise of options trading among WallStreetBets traders.

As the popularity of options trading grew, so did concerns about its impact. Experienced traders like Jaime and Jordan warned about the risks, but their voices were often drowned out by the enthusiasm of newcomers. The community's culture of embracing losses and the gamified nature of trading platforms contributed to an environment where reckless behavior was encouraged. This phenomenon raises questions about the influence of social media and trading platforms on individual decision-making and the potential consequences for financial markets.