Investing General Discussion

Fogel

Fogel

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ShakyJake said:
In my opinion, you have to have a sizable trading account to make writing PUTs worthwhile. I have a relatively small account which I'm (unsuccessfully) building up. I haven't blown it up, though, so there's that.
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Writing puts can be worthwhile even for small accounts. My new current plan is to sell weeklies where the premium is about a .25% to .33% gain for the week. That might not seem like much, but over the course of the year that's a +12.5% annual return. It might not seem like much, but do the math on 12.5% over 10-20 years and it's pretty substantial.
 
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Sanrith Descartes

Sanrith Descartes

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ShakyJake said:
In my opinion, you have to have a sizable trading account to make writing PUTs worthwhile. I have a relatively small account which I'm (unsuccessfully) building up. I haven't blown it up, though, so there's that.
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If I can make $50 or $75 gain per contract for 1,3 or 7 days hold for very low risk writing puts, I will do it all day long.

It's cash sitting in my account not currently invested I'm using the cover the puts. In this sideways market we have had for a year+, this ends up being quality gains at the end of the year when they are all added together. It's all Alpha.
 
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T

Tirant

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Sanrith Descartes said:
Personally, once I hit 75% profit I am starting to look for the exit door no matter how many days are left on the option. I prefer not to risk a black swan event over the small change to close it out.
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Sanrith Descartes said:
most of us here choose the sell side.
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This is the way. Especially with the interest you can get on cash at the moment, you can collect the premiums and decent Money Market interest at the same time if you don’t get exercised.
 
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Sanrith Descartes

Sanrith Descartes

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Tirant said:
This is the way. Especially with the interest you can get on cash at the moment, you can collect the premiums and decent Money Market interest at the same time if you don’t get exercised.
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I think if Joe normie understood the basics of writing puts on shit they would normally own like SPY, they could be writing weekly/monthly out of the money puts on it instead of sitting on cash out of fear.
 
Big Phoenix

Big Phoenix

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Jysin

Jysin

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Most of Europe on a holiday today. Could be some muted volume / volatility.

My biggest hesitation of calling the worst of the turbulence behind us is the lack of breadth in the market gains YTD. We have a handful of names that have pulled the S&P up. The likelihood of returning to the next bull cycle is not typically led this way. You want everything rising together, not just a handful carrying the weight of everything. (Apple, Meta, MSFT, Google, etc).

I want to get more long term money put to work, but what I see under the surface of the S&P rally isn’t very convincing for me yet.

I’ve been pretty vocal about buying big dips and selling the rips. I’ve also bought some decent sized hedge in the VIX should the wheels fall off in the next few months. (June and July $20C)

Don’t buy into any single narrative and keep your options open to both up and downside risks, especially at the upper index range here.
 
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Gravel

Gravel

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Jysin said:
Most of Europe on a holiday today. Could be some muted volume / volatility.

My biggest hesitation of calling the worst of the turbulence behind us is the lack of breadth in the market gains YTD. We have a handful of names that have pulled the S&P up. The likelihood of returning to the next bull cycle is not typically led this way. You want everything rising together, not just a handful carrying the weight of everything. (Apple, Meta, MSFT, Google, etc).

I want to get more long term money put to work, but what I see under the surface of the S&P rally isn’t very convincing for me yet.

I’ve been pretty vocal about buying big dips and selling the rips. I’ve also bought some decent sized hedge in the VIX should the wheels fall off in the next few months. (June and July $20C)

Don’t buy into any single narrative and keep your options open to both up and downside risks, especially at the upper index range here.
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Reminds me of the start of this, where it was all the small caps taking an absolute fucking beating. The market didn't reflect it though cause the large caps were still doing well (or maybe doing well because of the small caps).

I always assumed the small caps would be the first to recover.
 
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Fogel

Fogel

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Gravel said:
Reminds me of the start of this, where it was all the small caps taking an absolute fucking beating. The market didn't reflect it though cause the large caps were still doing well (or maybe doing well because of the small caps).

I always assumed the small caps would be the first to recover.
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Just looked, IWM is still below where it was on 01/01/21. Over 2 years and it's still a negative return. That's scary for small caps, but that's what you get when the government shuts down everyone but walmart/amazon for over a year.
 
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Gravel

Gravel

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Sanrith Descartes said:
NVDA cracked a new 52-high
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This is kind of a function of April - June being where shit really dropped off last year.

Because this is drawing out so long, it washes out some of the older data that made it look shittier a month ago.

Similar to inflation, where yeah, you may get it down to 5% year over year, but that's on top of the 9% increase from 2021 - 2022. It only looks "okay" because things were so fucked and the data is now starting to fall off because we don't report things longer than a year.

Edit: Actually, I guess for NVDA that's not quite right as the last peak was March 2022. But still, point mostly stands.
 
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Big Phoenix

Big Phoenix

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Damn.

You poz yet Mist Mist ?

Whats the news on nvidia? Nasdaq down and its up 3% on high volume.
 
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