One of the more significant emotional trading mistakes that traders can make is being guided by FOMO, or the “fear of missing out.” It can lead to numerous crucial trading mistakes that can cost traders dearly.
If you have ever happened upon subreddits like r/WallStreetBets or r/options, you’ll find that Reddit has an obsession with high-risk/high-reward trades. Studying these subreddits has given us a ton of insight into the options and strategies that have the most FOMO. We have analyzed actual Reddit threads and have uncovered which strategies traders regret missing the most. While it may not be a completely accurate assessment, this can give you a good idea of the strategies most motivated by the fear of missing out.
Methodology: How We Analyzed Reddit Posts
How did we analyze the Reddit posts we found on subreddits like r/WallStreetBets and r/options? We utilized tools and keywords such as “FOMO,” “should’ve,” and “missed out” to effectively scrape Reddit. In addition to the two subreddits mentioned above, we also examined the subreddit r/thetagang for further insights.
Methodology of Our Research
- Subreddits Included: r/options, r/wallstreetbets, r/thetagang
- Timeframe: Jan 2024–May 2025
- Metrics Analyzed: frequency, engagement, language tone, upvotes
- Disclaimer: Reddit ≠ all traders, but it reveals emotion-driven patterns
The Top 5 Most FOMO-Inducing Strategies on Reddit
Based on our methodology and mission for this guide, which were the most FOMO-inducing trade strategies found on Reddit? We’ve included each of them in the following section, providing deeper detail on why Redditors regret not using these strategies more often during their online options trading sessions.
#1 Short-Term Out-of-the-Money Calls on Meme Stocks
Meme stocks refer to stocks that gain popularity among retail investors through discussions on social media platforms or online forums. The strategy mentioned above refers to a high-risk, high-reward approach that involves an out-of-the-money (OTM) call option with a strike price higher than the current market price of the stock. All of the value comes from its time value—this means that the strategy profits when the stock price rises above the strike price before the contract expires completely.
Why Redditors Love Them
- Big Gains Are Possible—OTM calls on meme stocks can be highly profitable for traders, mainly when a coordinated rally occurs due to social media hype. Even if the stock doesn’t reach the strike price until near its expiration date, traders can still stand to gain a significant amount of money on OTM calls based on meme stocks.
- Plenty of Leverage—A small movement in the underlying stock or asset can result in a considerable percentage gain in the value of the option contract. Essentially, meme stocks enable traders to establish a large position with a relatively small initial investment. That brings us to our next point.
- Low Cost to Enter—A big appeal of meme stocks for Redditors is their low cost. Compared to buying shares outright or ITM options, OTM calls on meme stocks are relatively inexpensive and allow the trader to establish a large position at a low cost.
- Chasing Large, Quick Profits—On Reddit, there is a culture of pursuing high-risk trade setups for a significant payoff, and going after OTM calls on meme stocks fits in perfectly with the speculative nature that pervades much of the financial subreddits.
Examples From Recent Rallies
Although we were studying Reddit posts from earlier this year, we kept hearing about a rally that occurred in May 2024 with GameStop stock, where the price surged from under $14 to $48. Much of it was driven by the return of Keith Gill to social media, a man instrumental in the 2021 meme stock phenomenon. AMC Entertainment also saw a significant increase in its stock’s value, rising 78% at one point during the month.
Biggest FOMO Moments Mentioned
Obviously, the 2021 meme stock craze, which occurred with GameStop, was an event that many Redditors have a lot of FOMO about. Many wished they had invested during that time because the stock soared due to a coordinated effort by financial communities on Reddit.
Risks Traders Overlook
- Volatile or Sudden Declines—The prices of meme stocks can fluctuate significantly, making them unpredictable investments that can incur substantial losses if not properly managed.
- Lack of Fundamental Value—Meme stocks aren’t always based on the financial health of the company the stock is tied to or the stock’s performance, but it’s based on social media hype. The stock price can fall significantly if the hype goes away.
- Leverage Can Lead to Big Losses—Traders dealing with meme stocks can easily become overleveraged, especially if they’re already dealing with the fear of missing out. Traders with FOMO tend to buy more on margin, which can significantly amplify gains but also amplify losses.
- Herd Behavior—Traders will typically enter meme stock traders because they want to follow the crowd, meanwhile possibly going against the fundamentals of their trading plan or forgoing research before diving into the investment.
#2 LEAPS on Popular Tech Stocks
Many traders we analyzed on Reddit view LEAPS options on popular tech stocks as “easy wins” due to factors such as reduced time decay, long-term growth potential, the potential for higher delta sensitivity, and a lower capital outlay combined with leverage. However, there are some significant risks to consider with LEAPS on tech stocks, including the fact that these are volatile stocks, the initial premiums are higher than those of other options, and they aren’t a guaranteed win, despite some of the hype circulating online.
When FOMO Peaks
The times when traders feel the most FOMO around LEAPS on popular tech stocks are when there’s a post-earnings rally that drives the stock’s price significantly. These are the times when Redditor (or any trader) begins showing regret for not getting into this type of trade sooner. They start seeing the potential growth that comes from LEAPS on tech stocks.
#3 0DTE Options
These trades can generate a lot of excitement for investors because they involve an options contract that expires on the same day, creating unique opportunities for traders to experience rapid gains in their investments. Some people, including those on Reddit, refer to 0DTE options as the “ultimate adrenaline trade.” Its success is based on short-term price movements and exploiting them, which can lead to a fast-paced and sometimes fun approach to trading that Redditors love.
Missed Wins
Not succeeding with a 0DTE trade can occur for several reasons, including the following:
- Failure to Capture Time Decay: When the underlying price moves in an unfavorable direction, traders may not be able to capitalize on time decay with strategies such as selling calls or put spreads, which can result in significant losses.
- Failure to Take Advantage of Price Movements: If the market moves favorably, the trader only has a short window of opportunity to make the position profitable, so any failure to act when the price movement presents itself to secure a profit can be considered a missed win or opportunity.
- Poor Risk Management: Traders who fail to implement sound risk management principles, such as using defined exit strategies or stop-loss orders, can incur substantial losses over time.
The Thin Line between Excitement and Recklessness
While 0DTE options allow traders or investors to experience substantial gains if done correctly, there is always the chance that the trader could mess it up by failing to act when price movements are present, failing to capture the time decay aspects of the trade, or not implementing a risk management plan. 0DTE options require a good balance between acting aggressively to pursue profits and having some safeguards in place to deal with the worst-case scenario.
#4 Iron Condors That Were Too Safe
Surprisingly, some traders on Redditors regret not risking more on the iron condor traders they set up. The top reasons mentioned for the FOMO associated with this trade are the desire for higher premium income and wider profit ranges. Many traders express regret that they didn’t widen the wings of the iron condor to increase its overall profitability. The “wings” refer to the spread width.
We found numerous posts lamenting low rewards while stocks trended strongly, with many traders stating that if they had known, they would have been more intentional in establishing a spread width that would capture a wider profit range.
#5 Covered Calls on Stocks That Mooned
Another significant FOMO trader among traders on Reddit is covered calls, especially those on stocks that experience substantial increases and rapid growth. We saw numerous posts where traders expressed that they felt left behind when the stock shot past the strike price. We even saw emotional posts where trades said things like, “I capped my upside.”
Why FOMO Hits Options Traders Hard
The fear of missing out is a powerful psychological reaction that can significantly impact the decisions of options traders as they navigate the markets. It can drive some traders to take on too many positions because they don’t want to miss out on any of the market’s actions. They become overextended by taking on a high volume of low-quality positions and can also become overleveraged.
We’ll outline more of the reasons why FOMO hits some traders super hard:
- Leverage—Traders who fear missing out on opportunities can be tempted to enter a large number of positions where they can manage a large position with a relatively small amount of capital. However, what often happens is that the trade uses too much borrowed money to manage their portfolio, and they may not generate enough profit to cover financial obligations, such as contracts going to assignment or being exercised.
- Hindsight Bias + Fast-Moving Markets—FOMO can also create a false sense of confidence in some traders who believe their predictive abilities are better than they actually are, as evidenced by the success of specific trades, which may be attributed to luck rather than skill. It’s a phenomenon that’s quite common in fast-moving markets, such as stocks or options. This can create a cycle of continually taking on a large volume of positions and then possibly getting burned by a build-up of losses.
- Social Validation on Platforms Like Reddit—Sometimes, the root cause of the FOMO that many traders experience is to get validated by other users on Reddit for their trading successes. They will take on more than they can handle in the hopes that their investments will perform strongly and they can receive some praise online from strangers.
- The Role of Screenshots in Intensifying FOMO—In the age of social media and easy access to online trading communities, it can be easy for FOMO to set in for traders when they see other traders posting screenshots of their profitable trades and other successes. This can amplify feelings of FOMO, and it could lead some traders to feel a sense of urgency to replicate the success of others. However, this can fuel a herd mentality among traders, where they pursue specific trades without conducting any research beforehand and instead rely solely on hype.
How to Recognize and Avoid FOMO in Your Trading
Emotional trading should have no part in your online trading sessions, so it’s best to nip FOMO in the bud when you feel it coming on and want to get a foothold in your decision-making. We’ve outlined a few ways to recognize and avoid FOMO, allowing you to enjoy more harmonious outcomes in your online options trading endeavors throughout the week.
Easy Takeaways for Avoiding FOMO
- Pre-Plan Exit Strategies—Run scenarios on how you will exit the trade before you even have to make the decision. Figure out how much you’re willing to lose and how you might deal with losing positions. Will you roll it to a further expiration or roll it into a bigger trade? Even with winning traders, you have to find out how much you’re willing to take in profit before exiting. Having a strategy and trading plan like this can help you avoid FOMO.
- Trade With Defined Rules—Set up stop-loss and take-profit orders to set parameters for how long a trade is allowed to run before you terminate it. Traders should only enter positions when they’ve determined the type of strategies they want to use and once they know the potential losses or profits upfront.
- Stop Comparing Your Trades to Others—Focus on your own trades and your own self-improvement. Unless you’re willing to look at other people’s trades and want to learn from them, there’s no point in trying to compare your trades to others because you’re going to feel unsatisfied and let down. This can lead to further emotional trading decisions based on envy or fear.
- Journal Your Emotions—Keeping track of all the feelings you have experienced while trading can reveal the moments when FOMO might have been felt, and it can help you create awareness about this emotion and identify the areas in your trading activity where it might be creeping in. It’s a helpful tool that enables traders to manage FOMO deliberately.
- Use Strategy Backtests Instead of Reddit Hype—Do real technical analysis using multiple indicators and form a sound trading plan instead of basing your approach on Reddit hype or any other exciting news that’s being discussed on social media. You want to trade assets that have genuine value, not value based on hype or excitement.
Community Insight: What Real Traders Say
We want to conclude our guide on a positive note: how traders on Reddit personally manage the fear of missing out (FOMO). Not only does a lot of what we found on the app reaffirm what we’ve discussed here, but it can also serve as an encouragement to traders who might be dealing with these emotions and are looking for others who understand and have insights into managing them over time.
Thoughts from Traders on Reddit
“At some point I stopped caring. Remind yourself that it is the process that matters, not the result. Did you ENTER the trade according to your rules? Did you EXIT the trade according to your rules? Ask yourself these questions after every trade. Journal, write down your process. No emotions, no regrets, no FOMO.”
-eltac
“I stick to strict rules and a clear strategy and don’t give a damn about what it could have been. Looking at a move and desperately be like “aaaaargh, in another lifetime if mars was aligned with Venus with the moon on taurus I could have made $300, aaaaargh” is stupid and the best way to burn your account on the long run. Follow the flow, follow your strategy, there will be other moves you’ll take and that enters in your strategy. The market won’t definitively close tonight and you will still live something like decades.
I do what I have to do when I begin my trading day, I set alerts, then I read. What the price does when it does not enter my strategy is none of my business. And when it’s done it’s done, I did what I had to do, I have nothing to “regret”. The plan is the plan, I entered where I had to enter and got out where I had to get out according to the plan. Nothing more.”
-FrenchieMatt
“More of a risk management game than an “emotional” one. You deal with fomo same way you deal and fix 99% of the mistakes and “feelings” on every other job or activity: time and experience. There is no other way, experience, so time, so experience.”
-QueenGorda
“What helped me is experiencing large losses. Basically when I felt like you and kept holding, stock kept going down to where I would sell for a huge loss when I used to not have stop outs.
I tell myself it’s all hindsight. At the time of being in the position, you didn’t know it would keep going up. It could have easily flushed down on you. This way of thinking has helped me prevent those thoughts of “if I stayed in the position then I’d make x more”
-Anonymous User
If you’re interested in sharing your biggest FOMO trades or you would like to comment on the content of this guide, feel free to do so at the bottom—we would love to hear your thoughts and experiences!
The Real Cost of Chasing Trades
As we delved into Reddit communities to understand the biggest regrets experienced by online traders and investors due to the fear of missing out, we discovered that you can harness FOMO and turn it into a trading edge. By learning from your own fear of missing out or seeing it in other traders, you can get past regrets and start seeing that you can only control what is currently in front of you, and there’s no use in dwelling on past trades that could have been improved upon. Focus on your current trading plan now and make adjustments as you learn.
Key Takeaways
- FOMO is real—and Reddit proves it.
- Most regret = high-risk trades with missed upside.
- Long-term success > short-term hype.
- Learn from others’ regrets before they become yours.
👉 Want to master your emotions and pick the right strategy for your style? Check out our Options Strategy Builder Tool or visit our Best Options Brokers page to get started with confidence.
⚠️ The strategies mentioned are based on social sentiment and should not be considered financial advice. Always do your due diligence and trade responsibly.
