Official Investing Thread

Discussion in 'The Mainboard' started by Joe Louis, Jul 12, 2010.

  1. The Milkman

    The Milkman Send lawyers, guns and money, shit has hit the fan
    Donor

    Yessir. It’s a solid morning.
     
  2. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
    Donor TMB OG
    Miami MarlinsJacksonville JaguarsSporting Kansas CityAvengersMiami HeatSneakersWu-tangBook Club

    Show us the gains, we want to see the gains!
     
  3. Baseballman86

    Baseballman86 Well-Known Member
    Alabama Crimson TideAtlanta BravesAtlanta Falcons

    Options guys, is there a particular strategy you use when deciding whether to buy shares outright or pick up leaps?
     
  4. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
    Donor TMB OG
    Miami MarlinsJacksonville JaguarsSporting Kansas CityAvengersMiami HeatSneakersWu-tangBook Club

    That's AAPL's music!
     
    Struggler, Sportfan and texasraider like this.
  5. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
    Donor TMB OG
    Miami MarlinsJacksonville JaguarsSporting Kansas CityAvengersMiami HeatSneakersWu-tangBook Club

    I think I'm an "options guy"...just not a very good one. I know The Milkman and I have talked about he chooses to exercise some of his options but I don't. I'm solely trading them at the moment.
     
    Baseballman86 likes this.
  6. Arrec Bardwin

    Arrec Bardwin La Araña Discoteca
    Donor
    Auburn TigersAtlanta BravesAtlanta FalconsChelseaAtlanta United

    I think he means when do you buy an option vs just buying shares. I usually don't fuck with options because I'm too optimistic for them and miss the mark.
     
    Baseballman86 likes this.
  7. texasraider

    texasraider thanks
    Donor
    Texas RangersKansas City ChiefsDallas Mavericks altTexas Tech Red Raiders alt

    Imagine being 100% cash for the past 5 months
     
  8. Arrec Bardwin

    Arrec Bardwin La Araña Discoteca
    Donor
    Auburn TigersAtlanta BravesAtlanta FalconsChelseaAtlanta United

    Was I not supposed to pay Walmart $3 to cash my check then put it in my mattress?
     
    texasraider likes this.
  9. The Milkman

    The Milkman Send lawyers, guns and money, shit has hit the fan
    Donor

    Implied Volatility is probably the biggest determinant in this for me. I like to own shares of stocks with high IV (so I can sell calls for a nice premium).
     
  10. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
    Donor TMB OG
    Miami MarlinsJacksonville JaguarsSporting Kansas CityAvengersMiami HeatSneakersWu-tangBook Club

    And this is why you're so much better at this than me.
     
    dukebuckeye and Baseballman86 like this.
  11. The Milkman

    The Milkman Send lawyers, guns and money, shit has hit the fan
    Donor

    Let's look at this JMIA $45 June 18th call as an example. IV is super high at 114.8%. Let's say I own 1000 shares of JMIA ($44,550), and I sell `10 covered calls for a value of $12,600. I have effectively booked a 29% profit in a duration of 5 months if this stock stays at or greater than it's current value. If it decreases, I get to keep my shares and the premium of $12,600. This is the way to make money in the market.

    upload_2021-1-20_10-39-8.png
     
  12. RockHardJawn39

    RockHardJawn39 #FranklinOUT
    Donor
    Penn State Nittany LionsSan Francisco GiantsPhiladelphia 76'ersPhiladelphia FlyersLiverpoolWrexham AFC

    What's Rho? That wasn't in my basic options strategy class
     
  13. BP

    BP Bout to Regulate.
    Donor
    Atlanta BravesGeorgia BulldogsAtlanta Falcons

    I wish i completely understood options
     
  14. letan

    letan Just looking for the gator board
    Donor
    Real MadridJacksonville JaguarsFlorida GatorsTampa Bay Rays

  15. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
    Donor TMB OG
    Miami MarlinsJacksonville JaguarsSporting Kansas CityAvengersMiami HeatSneakersWu-tangBook Club

    Ohhhhh, now I know why I don't do it!
     
  16. The Milkman

    The Milkman Send lawyers, guns and money, shit has hit the fan
    Donor

    Probably the least important greek imo. It's a ratio that influences the option price related to any change in the Fed Funds rate. It's more important during inflation cycles
     
    RockHardJawn39 likes this.
  17. DuffandMuff

    DuffandMuff Well-Known Member
    Tampa Bay LightningSan Diego Padres

    My dad went to all cash back in March. Dummy. He's a few years from retirement, so I can understand a little bit why he freaked out. He's been back in for a few months now, but whew he missed some big gains.
     
    texasraider likes this.
  18. The Milkman

    The Milkman Send lawyers, guns and money, shit has hit the fan
    Donor

    I wonder if this fine couple is aware of their tax obligations
     
  19. Det. Frank Bullitt

    Det. Frank Bullitt God Bless Texas
    Donor TMB OG
    Texas LonghornsManchester United

    +3.47% on my portfolio, with GOOG pushing upward at +5.03% atm.
     
    SmoochieWallace and The Milkman like this.
  20. pacey

    pacey Well-Known Member
    Donor

    Is your dad Hank?
     
  21. DuffandMuff

    DuffandMuff Well-Known Member
    Tampa Bay LightningSan Diego Padres

    God, I hope not. That's my future nest egg I need him to build up.
     
    texasraider likes this.
  22. pacey

    pacey Well-Known Member
    Donor

    Taxes? I thought this was a gambling thread. No one reports gambling winnings.
     
    dukebuckeye, fish, ScFan27 and 3 others like this.
  23. Nashville Knight

    Nashville Knight Well-Known Member
    Donor
    UCF KnightsTampa Bay BuccaneersTampa Bay LightningNashville Predators

    VOO or ARKK in a long-term brokerage account?
     
    FourClover01 likes this.
  24. letan

    letan Just looking for the gator board
    Donor
    Real MadridJacksonville JaguarsFlorida GatorsTampa Bay Rays

    Lol. I put the odds low on that.
     
  25. ScFan27

    ScFan27 Well-Known Member
    South Carolina GamecocksNew York YankeesNew York JetsNew York Rangers

    They would be taxed at their normal tax level, right? So about 45% give or take depending on what state they would file for?
     
    #22525 ScFan27, Jan 20, 2021
    Last edited: Jan 20, 2021
  26. Baseballman86

    Baseballman86 Well-Known Member
    Alabama Crimson TideAtlanta BravesAtlanta Falcons

    This makes a lot of sense. Follow up question though:

    Selling covered calls prevents you from hitting those long term 10 bagger type home runs right, so how do you determine which holdings you sell calls against vs which you just hold or buy leaps in?

    So let’s take LOVE for instance. I like that business strategy for the long term. I can buy 100 shares and sell a covered call, or buy and hold shares for as long as I want, or buy a few leaps. Is it as simple as risk tolerance being the main deciding factor between those options? Covered calls being the “safe” option, holding position a little riskier and leaps more of the high risk high reward?
     
  27. The Milkman

    The Milkman Send lawyers, guns and money, shit has hit the fan
    Donor

    Correct, that money is locked up until expiration. If you do it twice a year, that’s almost a 70% return. Shit compounds fast.

    As for leaps vs shares. It’s IV. A good time to buy leaps is when a great stock has a low RSI and Vix isn’t too high.
     
  28. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
    Donor TMB OG
    Miami MarlinsJacksonville JaguarsSporting Kansas CityAvengersMiami HeatSneakersWu-tangBook Club

    Citron stream on GME tomorrow. Gonna take a lotto put overnight and see what happens.
     
    elfrid likes this.
  29. BUstang

    BUstang Lawyer

    Thinking the same thing. I am very bullish on GME but Citron tends to force a 5-10% pull back when they release their garbage.
     
  30. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
    Donor TMB OG
    Miami MarlinsJacksonville JaguarsSporting Kansas CityAvengersMiami HeatSneakersWu-tangBook Club

    The entire broadcast is supposed to be targeted at an argument for GME to be trading at $20 again.

    They absolutely crushed PLTR's movement with their last one. Even a temporary setback would be nice here.
     
  31. momux

    momux AFAM Scholar
    Donor
    North Carolina TarheelsCarolina PanthersChelseaFormula 1

    Isn't the IV on all GME options just bonkers right now?
     
  32. The Milkman

    The Milkman Send lawyers, guns and money, shit has hit the fan
    Donor

    yea it's absurd
     
  33. Fusiontegra

    Fusiontegra My life is dope and I do dope shit.#SparedByThanos
    Donor TMB OG
    Miami MarlinsJacksonville JaguarsSporting Kansas CityAvengersMiami HeatSneakersWu-tangBook Club

    I bought Feb expiry. I'll sell tomorrow, regardless of outcome.
     
  34. Sportfan

    Sportfan From Six to Dumptime
    San Antonio SpursHouston TexansNew Mexico State AggiesTexas AandM Aggies

    it’s more expensive than VOO by a good bit. Is it outperforming it recently?
     
  35. momux

    momux AFAM Scholar
    Donor
    North Carolina TarheelsCarolina PanthersChelseaFormula 1

    All the ARK funds have been through the roof over the last few years. I've allocated a bit of capital to ARKW and already popped 10% in 3 weeks.
     
    FourClover01 and texasraider like this.
  36. DuffandMuff

    DuffandMuff Well-Known Member
    Tampa Bay LightningSan Diego Padres

    They're not really all that similar. VOO tracks the S&P 500 and ARKK (as with all the other iterations of ARK ETFs) are funds that tend to focus on one sector. VOO has .03% expense ratio and ARKK has .75%.
     
  37. Ty Webb

    Ty Webb Living rent free in Jigga's head
    Donor
    Nebraska CornhuskersChicago CubsChicago BullsDetroit LionsChicago BlackhawksTiger Woods

    The main ARK ETFs are actively managed and, as you said, focus on a broad sector like technology or a specific sub-sector within technology.
     
  38. DuffandMuff

    DuffandMuff Well-Known Member
    Tampa Bay LightningSan Diego Padres

    I blindly jumped in to ARKK, ARKF, and ARKG in the middle of last year and have been very pleased.
     
    FourClover01, momux and Ty Webb like this.
  39. Sportfan

    Sportfan From Six to Dumptime
    San Antonio SpursHouston TexansNew Mexico State AggiesTexas AandM Aggies

    Actively managed means more tax implications right?
     
  40. billdozer

    billdozer Well-Known Member
    Donor
    Clemson TigersCarolina Panthers

    Only if it's in a brokerage account, not in a 401k or IRA.
     
    Sportfan and Fusiontegra like this.
  41. Sportfan

    Sportfan From Six to Dumptime
    San Antonio SpursHouston TexansNew Mexico State AggiesTexas AandM Aggies

    Ah shit yea forgot about that. Damn maybe I need to reassess what’s in my 401k.
     
  42. southside

    southside Well-Known Member
    Donor TMB OG
    Texas LonghornsSouth Carolina GamecocksHouston AstrosDallas CowboysSeattle Kraken

    Thank you for the tip

    just hedged my position and bought 2/5 33p
     
    Fusiontegra likes this.
  43. FourClover01

    Donor

    Can't wait for some ARKX here soon. I own 4 out of the 5 ARK etf's. Jumped in around October time, and glad I did so far.
     
  44. The Banks

    The Banks TMB's Alaskan
    Donor TMB OG
    Oregon DucksGreen Bay PackersDetroit Red WingsBayern Munich

    Kaspien (KSPN) having themselves a week. Up 230% since Friday morning.
     
  45. burnttatertot

    burnttatertot butt tuck zoomies
    Donor
    Washington State CougarsSeattle MarinersNew York MetsSeattle SupersonicsMetal

    I'm tired of watching everyone try to suck Cathie Wood's dick while my dick sits here with no suckers. How hard can it be to put together a goddamn ETF, Global X plays fucking theme games with theirs.
     
    The Milkman likes this.
  46. burnttatertot

    burnttatertot butt tuck zoomies
    Donor
    Washington State CougarsSeattle MarinersNew York MetsSeattle SupersonicsMetal

    Do penny stock ETF's exist? That sounds like fun.
     
  47. burnttatertot

    burnttatertot butt tuck zoomies
    Donor
    Washington State CougarsSeattle MarinersNew York MetsSeattle SupersonicsMetal

    Speaking of penny stocks my one and only penny stock was up over 24% today. DXLG
     
  48. HuskerGuy99

    HuskerGuy99 Above Average Member

    Beginning of a blowoff top or the start of a new era? I'm hedged until Monday.
     
  49. FourClover01

    Donor

    I just bought 1000 shares of ZOM. There RUFORMA diagnostic platform should get approved in March, but who the hell knows. About 1 dollar now, hope it gets to 2 dollars, then will slap a 15% - 20% trailing stop loss and call it a day.
     
  50. fish

    fish Impossible, Germany
    Donor
    Los Angeles DodgersLos Angeles RamsLos Angeles KingsSouthern California Trojans

    How many of you guys are doing this as your full time gig?

    I wish I could actively day trade but my wife works for an investment firm and we have to get approval from compliance for any purchase. On top of that, we have to hold said purchase for a minimum of 30 days before we can sell.