Master Thread Stonks/Options/Investing - come build your tfsf yolo stock portfolio

[RaiderAbe]

If you don’t want to buy physical bullion. These are traded on NYSE. Fully backed by the metals.

 

[Taggart]

I heard Bitcoin is good to invest in?
All jokes aside, I really have no clue what I’m talking about or even doing in this thread. Hope this helps.

In all seriousness, it is long-term. Lots of large institutions are now investing in Bitcoin and more and more will begin accepting it as currency (see the Mastercard and Tesla announcements). Being a decentralized, limited asset means it will only appreciate in value, especially as rapid inflation hits the US and the dollar becomes essentially worthless.

 

[Zgdaf]

Won't bonds be like 3%?

Can I get in and out of mutual funds or something like that in a day or instantly online (ideally)?

Not sure about your situation.. how will you know when to get in and out instantly?

3% dividends with little risk?

if the bonds go up in value quickly then it might be time to exit and buy equities, gold, etc while they are down.
The reason why the current LT government bonds go up in value is when interest rates go even lower.

 

[Carlscat]

Need something to dump our liquid into where I don't gotta worry about it going up in smoke with the market but that I don't gotta do anything besides check it every couple weeks.

Return % doesn't matter as long as we are around 5% or higher.

Wait...so complete liquidity with zero risk but need at least 5%? I’m assuming you have at least $10 million to do this with because if not...

Sorry my man!

 

[Cincinattus91]

Need something to dump our liquid into where I don't gotta worry about it going up in smoke with the market but that I don't gotta do anything besides check it every couple weeks.

Return % doesn't matter as long as we are around 5% or higher.

Bitcoin

They are printing and printing and printing

 

[Trazobone]

Buy SII

 

[Jtrain80]

Did that and felt worse. Those people are fucking crooks.

I've heard good things about the Russell but obviously have the financial IQ of a potato.

Keep looking.

Seriously, save your money in the safest environment possible until you are ready. What is ready to you might be something else to others. If you don't have a billion dollar idea, that is fine. Loss minimization is the key. According to Uncle LB anyway.

 

[CDDP]

If you don’t want to buy physical bullion. These are traded on NYSE. Fully backed by the metals.

View attachment 6656

This. GLD and SLV are not to be trusted

 

[Coastal Siberia]

If you can afford it BRK.A

reinvest dividends and not look at it until you want to retire.

 

[America 1st]

If you can afford it BRK.A

reinvest dividends and not look at it until you want to retire.

Wife's health change and getting chemo has really changed our perception of retirement and how long we are gonna be around.

While we don't plan on going Rick Ross (BMF) we are gonna travel and stuff over the next ten years as opposed to assuming we'll be able to in 15-20.

Appreciate everyone's input but these aren't really retirement funds as most people would generally view them. Just looking to get some growth and have access for when we want it.

 

[Coastal Siberia]

Wife's health change and getting chemo has really changed our perception of retirement and how long we are gonna be around.

While we don't plan on going Rick Ross (BMF) we are gonna travel and stuff over the next ten years as opposed to assuming we'll be able to in 15-20.

Appreciate everyone's input but these aren't really retirement funds as most people would generally view them. Just looking to get some growth and have access for when we want it.

then buy BRK.B

or get an investment adviser if you want traditional advice.

 

[shiv]

then buy BRK.B

or get an investment adviser if you want traditional advice.

What’s the difference in choosing between brk.a and brk.b? I’ve known there are separate choices, but never understood why you would pick one over the other

 

[JustinYormaum]

Plastics.

 

[Pfft]

IShares ETF’s are what I use to manage some family trusts.

AOA is aggressive growth
AOR is growth fund
AOM is moderate growth

I buy AOR for our trusts and just let it ride. No trading or rebalancing required. Gives exposure to US, exUS stocks and bonds. They trade like stocks.

 

[Coastal Siberia]

What’s the difference in choosing between brk.a and brk.b? I’ve known there are separate choices, but never understood why you would pick one over the other

Price.
Also the a will never split and can be hard to buy if market is hot and no one is selling

 

[shiv]

Price.
Also the a will never split and can be hard to buy if market is hot and no one is selling

So I’m still having a hard time understanding the mechanics of owning one versus the other.

I understand the price difference, but why should I buy brk.a if I can afford it over brk.b

 

[hmt5000]

This is a really good and serious take on bitcoin investing... especially for women.

 

[Coastal Siberia]

So I’m still having a hard time understanding the mechanics of owning one versus the other.

I understand the price difference, but why should I buy brk.a if I can afford it over brk.b

The a gives you a preferential return over the b. Just like classes in a corporation.
Dividends first go to a. Then b.
So goes if it ever liquidates. Etc.

 

[VladimirPAdkins]

Didn't see much discussion or information on here for stonks. Interested to get a discussion started. My biggest play right now by far is CCIV with the Lucid deal supposedly imminent. Indications are Tuesday if you're tracking it.

Some others I hold that I like: DPW, VISL, SOS, EBON, COMS, KMPH, TRCH, and added some PLTR on Friday. TRCH has ran quite a bit and pulled back some with some shorts attacking it. Reduced my position on that one and interested to see where it goes.

Just added FRX with a couple of call options on Friday as well. Been getting into some OTC plays, but still trying to figure out how they play. Got out of most of them, because they were fucking up my margin balance on TD.

Looking to add GSAH and maybe a couple of others this week.

 

[shiv]

Let’s go boys:

 

[shiv]

My biggest individual plays right now are:

AT&T and XOM for the 7% yield, and Raytheon for the 3% yield with solid fundamentals and a Biden admin

 

[VladimirPAdkins]

My biggest individual plays right now are:

AT&T and XOM for the 7% yield, and Raytheon for the 3% yield with solid fundamentals and a Biden admin

I'm mostly playing higher risk with potential exponentials while the market is hot and swing trading. Small caps, SPACs, crypto/blockchain related plays, technical innovation, etc.

If you like those, you should check out PCI. It's an ETF with an annual dividend yield of 9.78%. Pretty safe and you get a monthly dividend of $0.174 per share and some slow stock growth.

 

[shiv]

I'm mostly playing higher risk with potential exponentials while the market is hot and swing trading. Small caps, SPACs, crypto/blockchain related plays, technical innovation, etc.

If you like those, you should check out PCI. It's an ETF with an annual dividend yield of 9.78%. Pretty safe and you get a monthly dividend of $0.174 per share and some slow stock growth.

Overall I’ve gone pretty conservative in the last couple months. Heavy majority of my portfolio I moved to 60% stock / 40% bond broad market index funds. Hold a few individuals in my Roth, but I’m largely going in to sit back and wait mode (without going too conservative)

 

[America 1st]

Overall I’ve gone pretty conservative in the last couple months. Heavy majority of my portfolio I moved to 60% stock / 40% bond broad market index funds. Hold a few individuals in my Roth, but I’m largely going in to sit back and wait mode (without going too conservative)

That's hardly even stonkin...

Spoiler

I'm that too conservative faggôt

 

[shiv]

That's hardly even stonkin...

Spoiler

I'm that too conservative faggôt

 

[VladimirPAdkins]

View attachment 8064

And It'S Gone GIF - - Discover & Share GIFs

Click to view the GIF

tenor.com

 

[CBradSmith]

 

[shiv]

CCIV to the moon today?

 

[quickfeet]

Looks like CDEV touched $4 this morning

CDEV Stock Price | Cohen Development Gas & Oil Ltd. Stock Quote (Israel: Tel-Aviv) | MarketWatch

CDEV | Complete Cohen Development Gas & Oil Ltd. stock news by MarketWatch. View real-time stock prices and stock quotes for a full financial overview.

www.marketwatch.com

I had a theory in March of last year that if you could find the microcap oil companies to survive last years chaos it would pay off tremendously. I had some $$ in DNR, OAS and CDEV. CDEV is the one that survived. I wish I had completely stuck to my guns here (my hands got soft and I trimmed my position pretty big before it played out), but I'm still up big on my comprehensive microcap energy play

 

[quickfeet]

Interesting anecdote:

I use my Roth IRA account for experimenting with individual stock trading (it shields me from capital gains). Basically see if I can beat the market.

In the past 5 years my annualized Rate of return is 16.9% - not bad - but if you look at the annualized return of the SP500 the last 5 years it is 16.4%... I wasted a shit load of time for the 0.5%... but I have had a ton of fun with it

 

[CBradSmith]

Interesting anecdote:

I use my Roth IRA account for experimenting with individual stock trading (it shields me from capital gains). Basically see if I can beat the market.

In the past 5 years my annualized Rate of return is 16.9% - not bad - but if you look at the annualized return of the SP500 the last 5 years it is 16.4%... I wasted a shit load of time for the 0.5%... but I have had a ton of fun with it

Are you able to sell Puts from that account?

 

[quickfeet]

Are you able to sell Puts from that account?

I think so? It's Vanguard so some of the tools kinda stuck. I have not yet processed how options work in my brain space

 

[CBradSmith]

I think so? It's Vanguard so some of the tools kinda stuck. I have not yet processed how options work in my brain space

Nutshell for a Put is:

You can buy or sell it.

If you sell one, you are on the hook for paying the buyer the strike price of the underlying asset.

WMT trading at $130/share. You either A. Want to own WMT at $100/share, or B. Dont think the stock will move below $100/share before the Put expires. So you sell a WMT Put at a $100 strike price that expires 90 days from now. (You can sell as near or far out as you want as long as there is a buyer.)

You collect a Premium of $200 for selling that Option to someone. They are likely betting that WMT is going to $80 (example) before/at the expiration of the stock. If it is $95 at expiration, you buy 100 WMT shares from the option holder at the agreed upon $100 strike price. $10,000 - $200 (premium). You now own 100 shares of WMT at a $98 cost basis (diluted by the premium you collected).

If the stock doesnt expire below $100/share, then nothing happens and you keep the $200.

That is a rudimentary explanation of a sold (short) Put. You can be the Put buyer, if you wish.

Calls deal with the underlying going up instead of down in value.

 

[quickfeet]

Nutshell for a Put is:

You can buy or sell it.

If you sell one, you are on the hook for paying the buyer the strike price of the underlying asset.

WMT trading at $130/share. You either A. Want to own WMT at $100/share, or B. Dont think the stock will move below $100/share before the Put expires. So you sell a WMT Put at a $100 strike price that expires 90 days from now. (You can sell as near or far out as you want as long as there is a buyer.)

You collect a Premium of $200 for selling that Option to someone. They are likely betting that WMT is going to $80 (example) before/at the expiration of the stock. If it is $95 at expiration, you buy 100 WMT shares from the option holder at the agreed upon $100 strike price. $10,000 - $200 (premium). You now own 100 shares of WMT at a $98 cost basis (diluted by the premium you collected).

If the stock doesnt expire below $100/share, then nothing happens and you keep the $200.

That is a rudimentary explanation of a sold (short) Put. You can be the Put buyer, if you wish.

Calls deal with the underlying going up instead of down in value.

I appreciate the explanation. I've tried to process this off and on at times, but I'm still not quite there.

Where do people get wrecked in options? What happens in the WMT scenario above if the stock goes the opposite direction (up to $160 in the 90 day period)

 

[CBradSmith]

I appreciate the explanation. I've tried to process this off and on at times, but I'm still not quite there.

Where do people get wrecked in options? What happens in the WMT scenario above if the stock goes the opposite direction (up to $160 in the 90 day period)

In that scenario, you sold a Put with a $100 strike price and received a Premium of $200.

You are paid the Premium because you are taking a risk. If WMT goes to $80 at expiry, being short the Put (you sold it) obligates you to buy 100 shares at the Strike price of $100/share from the person who bought your Put. That person paid $200 up front to you. 90 days has passed and the stock moved from $130/share to $80/share, and the Put buyer will now make $2000 by selling you 100 shares of WMT at $100/share, even though it is trading at $80 right now. The buyer's net profit is $1800.

You could have sold at a different Strike price. In the scenario, WMT was trading at $130. You sold at $100/share within a 90 day time frame (90 days from expiration of the Put). You could have sold at $95, $105, $130 (at the money), or higher than the current trading price, like $140 (in the money).

Each strike price level (as well as differing count of days to expiration - you could have sold at 45 days to expiration, or 30 days, or 180 days, etc) has is a different Premium associated. The Premium amount corresponds to the probability that a stock does/doesn't move to a strike price or past it.

Imagine Strike prices for a given date of expiration as existing under something resembling a bell shaped curve. The curve would be centered pretty closely to the stock's price at the time you sold the Put.

To answer your first question, there are several moving parts to options that impact the value that a buyer or seller is seen as currently possessing with their position. They *are* complicated, but in my experience that is mostly due to not being familiar with the terms. Puts, Calls, Long, Short, Volatility, Theta decay, Skew, etc... The concepts are fairly straight forward if you spend time learning them. Attaching foreign concepts to weird terminology makes it difficult. People get wrecked, because they don't know what they are doing, they are speculating, or they are over leveraged.

To your last question, if the stock goes up to $160, then there's no benefit to the person who bought your Put, and the option expires worthless. You keep $200. The end. Any of your money that the brokerage had "held" is released, free to enter a new trade. Money would be held due to the *possibility* you may be forced to buy 100 shares of WMT at $100/share. A brokerage that holds 100% of what you could possibly be forced to pay (for the shares) might hold $10,000. In any situation where the stock goes to $160, stays at $130, or comes down to $101, the option simply expires worthless. You've made $200 on $10,000 held money in 90 days. 2%. They stock could have gone down to $98 and you would still "break even." Below that, you theoretically lost money, because you are forced to buy the stock at a price greater than what the market is currently selling it...but if you're comfortable buying WMT at $98/share for the long term, then did you really lose?

If I were accumulating a particular stock over time, I'd sell puts against it at a strike price I find attractive. If the Put I sell expires worthless, then great, I do it again. If I'm forced to buy the shares, though, that's okay by me, because I CHOSE the price I'm comfortable with owning it.

 

[Cleetus7]

Normally do the normal swing trading with Big Tech (FAANG). Switched it up a couple weeks back when they started treading water.

I went hard at the Cannabis stocks. Seems there is some real smoke out there regarding federal legislation. I'm holding stock in TLRY and ACB. Currently holding options in MJ (cannabis ETF) and a few long dated TLRY's. These may end up only being decent trades if nothing happens, potential grand slams if it goes through

 

[shiv]

CCIV/Lucid merger announced and its down 35% premarket. What’s the reasoning here? This doesn’t surprise me much though, a lot of times this stuff plays out opposite of what you would think in the short term

 

[quickfeet]

Where my CDEV boys at? $4.16

 

[quickfeet]

Didn't see much discussion or information on here for stonks. Interested to get a discussion started. My biggest play right now by far is CCIV with the Lucid deal supposedly imminent. Indications are Tuesday if you're tracking it.

Some others I hold that I like: DPW, VISL, SOS, EBON, COMS, KMPH, TRCH, and added some PLTR on Friday. TRCH has ran quite a bit and pulled back some with some shorts attacking it. Reduced my position on that one and interested to see where it goes.

Just added FRX with a couple of call options on Friday as well. Been getting into some OTC plays, but still trying to figure out how they play. Got out of most of them, because they were fucking up my margin balance on TD.

Looking to add GSAH and maybe a couple of others this week.

Is the CCIV/Lucid merger official?

 

[quickfeet]

In that scenario, you sold a Put with a $100 strike price and received a Premium of $200.

You are paid the Premium because you are taking a risk. If WMT goes to $80 at expiry, being short the Put (you sold it) obligates you to buy 100 shares at the Strike price of $100/share from the person who bought your Put. That person paid $200 up front to you. 90 days has passed and the stock moved from $130/share to $80/share, and the Put buyer will now make $2000 by selling you 100 shares of WMT at $100/share, even though it is trading at $80 right now. The buyer's net profit is $1800.

You could have sold at a different Strike price. In the scenario, WMT was trading at $130. You sold at $100/share within a 90 day time frame (90 days from expiration of the Put). You could have sold at $95, $105, $130 (at the money), or higher than the current trading price, like $140 (in the money).

Each strike price level (as well as differing count of days to expiration - you could have sold at 45 days to expiration, or 30 days, or 180 days, etc) has is a different Premium associated. The Premium amount corresponds to the probability that a stock does/doesn't move to a strike price or past it.

Imagine Strike prices for a given date of expiration as existing under something resembling a bell shaped curve. The curve would be centered pretty closely to the stock's price at the time you sold the Put.

To answer your first question, there are several moving parts to options that impact the value that a buyer or seller is seen as currently possessing with their position. They *are* complicated, but in my experience that is mostly due to not being familiar with the terms. Puts, Calls, Long, Short, Volatility, Theta decay, Skew, etc... The concepts are fairly straight forward if you spend time learning them. Attaching foreign concepts to weird terminology makes it difficult. People get wrecked, because they don't know what they are doing, they are speculating, or they are over leveraged.

To your last question, if the stock goes up to $160, then there's no benefit to the person who bought your Put, and the option expires worthless. You keep $200. The end. Any of your money that the brokerage had "held" is released, free to enter a new trade. Money would be held due to the *possibility* you may be forced to buy 100 shares of WMT at $100/share. A brokerage that holds 100% of what you could possibly be forced to pay (for the shares) might hold $10,000. In any situation where the stock goes to $160, stays at $130, or comes down to $101, the option simply expires worthless. You've made $200 on $10,000 held money in 90 days. 2%. They stock could have gone down to $98 and you would still "break even." Below that, you theoretically lost money, because you are forced to buy the stock at a price greater than what the market is currently selling it...but if you're comfortable buying WMT at $98/share for the long term, then did you really lose?

If I were accumulating a particular stock over time, I'd sell puts against it at a strike price I find attractive. If the Put I sell expires worthless, then great, I do it again. If I'm forced to buy the shares, though, that's okay by me, because I CHOSE the price I'm comfortable with owning it.

Man, thanks for taking the effort to write all this out. I had been meaning to come back and read it when I could try and process it.

I always looked at it: if you sell short and the stock goes up you lose. But the problem is if you sell short and the bottom falls out (if I am understanding it right).

So I have a chunk of XOM shares I bought last springtime. Should there be a way that I can leverage these shares as collateral and earn a consistent premium?

I remember reading somebody talking about that in a Rivals thread one time about selling puts against some stable stock they own to consistently earn some extra income. (I see the risk now being that I would lose those shares or have to pay some kind of difference if they fall below the strike price)