Tag: 10 Commandments of Options Trading

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Join WSB's community voice chat, every day from 8:30am to whenever! Check out our Earnings Thread and Rules. submitted by /u/OPINION_IS_UNPOPULAR [link] [comments]

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​ 3y 25y Since stocks started to go down I see a lot of posts about 4 week moving average in bankruptcies and a lot of "the sky is falling" posts. Don't get mislead by those people. They don't post the actual data because it's far less dramatic and use a misleading 4 week moving average with a minimum market cap because it fits their narrative. Bankruptcies are in fact at a historical low. submitted by /u/grimkhor [link] [comments]

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On an unrelated note to anything, I finally got around to watching The Big Short starring Christian Bale last night. Holy shit - that was a great fucking movie. I found it to be highly insightful into the events that led to the 2007/2008 housing (and subsequent global) market crash. I had no real knowledge of what occurred, how the subprime, adjustable rate mortgages of that time were the cause of the failing bonds, and the genius of Michael Burry and others to exploit and profit from the situation. If you're sitting around waiting for the market to open so you can lose more money, open your Netflix app and give this movie a watch. You won't be disappointed. submitted by /u/Sharp-Direction-6894 [link] [comments]

Lastly I’ve noticed that all my options have tanked. Be it puts or calls. I feel like MMs are reading individual trades and creating the perfect situation to Rob on both sides. Ever heard of max pain? Anyway my story, I feel my brokerage is betting against me, they know exactly which options I have. submitted by /u/Wallstreet-addict [link] [comments]

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This is your safe place for questions on financial careers, homework problems and finance in general. No question in the finance domain is unwelcome. Replies are expected to be constructive and civil. Any questions about your personal finances belong in r/PersonalFinance, and career-seekers are encouraged to also visit r/FinancialCareers. submitted by /u/AutoModerator [link] [comments]

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I had planned to hold it as a medical emergency fund, by the time I retire I could have 80k. Then when Medicare is available I could assume whatever remains is a earmarked for long term care. Not really a right or wrong answer here but how conservative is this? I see others discussing holding years of receipts to be able to use the funds tax free for presumably another income source. Not sure how you'd really work this into a real long term plan as you would only have tax free access to whatever expenses you happen to accrue (which best case is very low! No one wants to get sick to avoid taxes obviously). submitted by /u/Nearby_Jaguar7416 [link] [comments]

I know you've been combating inflation for a year and a half now and life is not pretty hard on you guys, but why are you not buying from us China like you used to? We have a pretty bad deflation problem here. Everything except food, gas and houses are just dirt cheap. Lithium-ion batteries are something like 500 yuan per kwh ($680/kwh) which drives Tesla Model3 (old model before facelift) to 230k yuan ($31k) and mainstream PHEVs to 150k yuan ($20k). EVs for ride sharing and taxis are near the 100k yuan mark ($15k) but home users never buy them. Mainstream high-end cell phones are $300-$400 but I personally go with $200 ones, which gives you top-tier performance with a low-tier shell. $1000 phones exists but doesn't sell well, except iPhones. $400 is as good as it gets in all perceptible ways. I'm talking about 12G+256G models from Xiaomi, Oppo and Vivo. Everything else, literally, everything, is on sale. Home appliances, furniture, clothing, everything. Last month when my car's key fob battery died, I bought a new 2032 battery with exactly $0.01, yes, 0.07 yuan, with shipping included, delivered in 4 days! It was labeled as Sony and you would think it must be a fake, but it works! If one cent could last a year then I still call it a good value. Fake or not, it's just one cent. So, what's going on over there? Why don't you guys buy from us? If Chinese goods floods into US, then our price becomes yours then inflation solved? Is inflation really caused by the stimulus check? Or it's the US-China trade war? submitted by /u/dxin [link] [comments]

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I start by apologizing for the photo because the picture is in front of a light bulb. I accumulated these three certificates at a few auctions. I also point out that the Exxon stock (the blue one further down) was owned by Merryl, Lynch, Pierce & Smith incorprated submitted by /u/vivaildoge [link] [comments]

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Back when the pandemic first started, I (26) setup a brokerage account to invest (Etrade). I was living at home at the time and saved a decent amount of money. The account has since grown to 22kish. I opened the account before really assessing my goals and understanding what other investing options are out there. I have decided to start my FIRE journey and want to make sure I approach it correctly. So far I have an emergency fund in a HYSA, a company funded 401k (10% personal contribution + 4% match), and the Etrade account. I dont have a roth setup yet and realize the brokerage account isnt a preferred method of investing (at least not until others are maxed out). All of the investments in the brokerage account are older than 1 year and is generally comprised of the following: - Apple: 16% - AMD: 2% - GM: 1% - ICLN: 5% - ME: >1% - MSFT: 7% - MSOS: 1% - SBUX: 4% - VTI: 64% For reference, below is a summary of my finances: 1. Checking: $4k 2. HYSA: $11k 3. 401k: $26k 4. Etrade: $22k 5: Salary: $88k + ~$15k bonus A percentage of my brokerage portfolio (non VTI or Apple/Msft) hasnt performed well and I’d like to just liquidate and reinvest into a roth. Thanks in advance for any advice. submitted by /u/ContagiousCompetence [link] [comments]

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On Friday I thought I was on the way back, I had $250 and turned it into $1500 but today I somehow managed to lose it all. I still have $30 and will keep trying if it's even possible, but it doesn't look good. submitted by /u/ArcNovaV1 [link] [comments]

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" That wave could bring cumulative high-yield defaults to 15%, according to Melentyev, a jump from current levels. In the last 12 months, about 2.5% of US high-yield debt defaulted, according to Fitch Ratings. A persistent 4% inflation rate could bring cumulative defaults to 10%, Melentyev wrote. " https://finance.yahoo.com/news/inflation-jump-could-bring-junk-174200351.html Now imagine the regional small banks with all the loans they hold that are junk equivalent as well. submitted by /u/j_stars [link] [comments]

We ride or die. Economic data better come in hot af with JPOW saying 2 more hikes this year and 5.25% will stay until 2030. submitted by /u/IntelligentRent7602 [link] [comments]

I’m getting married to my fiancé by the end of this year. My income this year will come out about $400k and my wife will be $50k (she has a $100k/yr job but has only been working for half the year) I know I definitely can’t contribute to a Roth IRA (due to income limits) and I also can’t do a backdoor Roth due to the pro rata rule since I have traditional non-401k IRA accounts However my soon-to-be-wife doesn’t have any traditional IRA accounts My questions are: 1) If we plan to file married jointly for the 2023 tax year, I’m assuming my wife can’t contribute directly to a Roth IRA since household income will be counted towards the income limits and not just her income alone. Is that correct? 2) If the above is true, does the pro rata rule apply to her as well since it applies to me? Can she do backdoor roth contributions even though I have traditional IRA accounts that make me personally ineligible? submitted by /u/DogtorPepper [link] [comments]

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After Jereome Powell poo-poo'd the markets following the most recent FOMC meeting on September 19-20, volatility spiked up about 30% from the lows in the mid-ish 13's just prior to the FOMC meeting notes being released, while SPY and SPX took big dumps over the following two days, and continue to dump. Decided to take a ~$61,000 short position betting on volatility getting crushed over the next few days/weeks. To avoid getting theta crushed out early, I set the contracts minimum DTE at 55, to allow my degeneracy enough time to work itself out. DD is that elevated levels of volatility cannot remain elevated for extended periods of time. Volatility is a decaying asset that loses value over time, and this time should be no different. I expect these positions to return 17-23%. Happy hunting! submitted by /u/Thats_not_my_son [link] [comments]

Shares were bought by a family friend 2 Fridays ago, and they said I should post it online. TLRY to the moooooon. And ligma balls u/sigmatrophic submitted by /u/GBAKES1017 [link] [comments]

I shared my "later in life" investment story here. Although I'm very proud of my progress so far, I'm also very far behind compared to many in the FIRE community. I've given up watching FIRE YouTube channels because it makes me feel even worse. I used to LOVE watching "Our Rich Journey" but for several months now, it's only discouraging. I see how lovely their lives are and how far away from it I am. It's not motivating anymore. At my pace, I could potentially retire at 60-62 years old (still early-ish) but I can't imagine working at this pace for another 12-15 years. I'm desperate to travel and actually live my life....not just work. How do you all cope with your reality vs your dream? submitted by /u/whereisgirlfriday [link] [comments]

Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

submitted by /u/Jizzillionaire2 [link] [comments]

According to https://walletburst.com/tools/coast-fire-calc/, I have enough to coastFIRE at 50 years old with an annual spending of $40K, if I invest $420K today at age 28. $300K is tapped into equity as I live in a VHCOL city where condos are $700K+ $120K are in tax-sheltered accounts. ​ It seems like if I sell my Studio and set the $420K away into VTI. I can comfortably start spending 70-90% of my take home until I coastFIRE? I work in finance and accounting with a CPA/CFA combo and bring home $72,000 a year, my income will drastically go up as I move into management and higher positions. If the above makes sense, I'd honestly coast in a lower position, WFH and work < 20 hours a week to cruise through. ​ If I have kids in my mid to late 30's, I can spend the next 18 years of my $72K+ take home to take care of them. I also have the privilege of moving into a rent capped apartment that my sister currently has a lease in and will likely transfer over to me once she upgrades to a townhouse. submitted by /u/bcitman [link] [comments]

300k Net Worth (~25k in cash across HYSA/HSA/Checking) - paid of student loans early. 25M I just reached $275k invested today, and I am hoping to start tracking these milestones on here as I work towards coastfire. I would like to credit r/bogleheads as well as the FIRE movement with getting to where I am at, but I feel like the road is just getting started. My salary recently increased from ~$100k year annual salary before before taxes to ~$150k/yr through some job hopping and promotions. I live in a HCOL area, but have been splitting rent with my girlfriend which has been a huge help, as well as living frugally so that I can invest the majority of each paycheck. During college, I had no idea what I was going to do and was working for minimum wage at a gym at the time. I ended up getting an entry level role as an analyst shortly after graduation and have kept my expenses in line with what they were in college since then. I am lucky that I found r/Bogleheads early as well as the FIRE movement, otherwise my lifestyle inflation probably would have skyrocketed. I am definitely fortunate to be making as much as I am now, but I hope that other people just getting out of college will take the lesson to stay as frugal as possible and use your 20s (the best decade for compound growth) to put as much as they can into investments. I hope to show the progression here on a quarterly or annual basis to see how it pays off. Thanks to everyone here for the advice and stories over the last few years (long-time lurker here)! EDIT: Some people are pointing out that I would have to have an unbelievable savings rate to reach this amount by now with the salaries I mentioned. I should have mentioned that outside consulting part-time gigs and additional side hustles were added in this year, and my bonus has been consistent at 10-15% with a 6% employer-matched 401k. I have also been fortunate for my rent to not have exceeded $1k/mo due to splitting with my S/O, don't own a car, and I have kept any other expenses very minimal. I will do a more detailed breakdown in my next update to prevent confusion, and I am happy to share backup with mods if necessary for verification. Thank you for all the positive feedback and advice in the comments! submitted by /u/VirtualProfessor5527 [link] [comments]

Long time reader, first time posting. We moved from a VHCOL to a HCOL area about 5 years ago and were finally in in a financial position to take retirement seriously. I (45M), married to a 51F and am thinking about slowing down to pursue a less stressful/demanding job. We have 2 kids, 16F and 12M. Been with the same company for 9 years, but the last 3 under new leadership has been terrible; toxic culture, unnecessarily stressful, unrealistic expectations, etc. The result…..I’m burned out. A less demanding job would most likely lead to a 40-50% pay cut. My partner enjoys working and will probably do so until retirement age at 62 or so. I don’t necessarily want to retire early, but I just don’t want the stress of a demanding job. ​ Location: HCOL Income: 320K Me: 160K Spouse: 160K With state taxes, pre-tax contributions, medical, etc. Our take home is roughly half that at $160k Combined Net worth: 1.79M House: 540k (valued at 880K w/ 340k left @ 2.75%) 401k: 921k IRA: 100k Brokerage: 115k 529b: 82k (contribute 1k a month combined) 16F: 46k 12M: 36k Emergency Cash: 34k (high-yield savings @ 4.4% interest) We have 2 newer cars with one of them paid off. As for debts, we try to live somewhat frugal and don’t like to carry much debt. Other than the following, we spent most of our time and money on the kids as they are both in travel sports (which is crazy expensive). • Mortgage (including insurance and taxes): $2400 • Car payment: $359 • Credit Card: 500-1k that we pay off monthly We save about 25% of our income across 401k, 529b, brokerage, and savings. However, will need to decrease this if I slow down. So, what do you think? Am I crazy to slow down? EDIT: My concerns with slowing down are college costs and if we’ll have enough in retirement. We don’t have a lavish lifestyle now and don’t plan to in the future. It’s difficult to determine how much we’ll need in retirement as right now kids take up a lot of expenses. I’m forecasting 90-100k per year in retirement should be enough and I think we’re on track, but have that feeling in the back of my mind that it’s not enough. submitted by /u/Vast-Progress8798 [link] [comments]

For instance, I hear dividends aren’t “Qualified” if you have options or other contracts tied to the underlying stock. Is this true? submitted by /u/smarlitos_ [link] [comments]

I've been a long time lurker on this sub. I recently FIRE'd. I don't feel like writing a long post about my journey, but... I'd love it if someone told me to go fuck myself. You guys are the best. submitted by /u/juanjon [link] [comments]

How do you all account for home maintenance in retirement? I see the "1% rule" thrown around everywhere online suggesting to budget 1% of the home value for repairs per year, and wondering how accurate it is. We live in a 4000 sqft "cookie cutter" new build (2019) worth $1M for 2 year now and haven't really had any maintenance cost so far. This house will possibly be our forever home (and if not, we'd be moving to a similar house in another location), so we want to estimate the repair/maintenance cost to account for in our retirement expenses in order to not underestimate them. We're planning to do a more precise analysis of each item that may need repair and will do some math based on the cost and lifespan of each item (roof, HVAC, heater, appliances...etc...) but wanted to get a rough ballpark from others who have similar houses or put more thought into precise estimates. Should we expect to be spending as much as $10,000 (1%) a year on average over a lifetime? Lower? Higher? submitted by /u/childofaether [link] [comments]

Hey everyone, physician with tons of debt just started making my long-term income. Wondering what my best move is right now: NW: -550K (negative) Breakdown: -470K student loans at 4% -52K private loans at 10-11% -34K private loans 5% -5K credit card debt at 11% -10K credit card debt at 0% for next few months Assets: +1K savings +13K retirement account +5K checking Est. monthly paycheck: +15-20K Est. monthly expenses: $7K including required minimum payments, rent, food, etc I will be doing the maximum contribution to my employer retirement account, which works out to 3K per month. So about 5-10K left over per month to throw at debt and start investing/saving for retirement. Right now I think my best bet is to tackle all the 10/11% debts now with the 3K/mo retirement contribution as my sole goal. No other investing, put the entire 5-10K left over to this high interest debt as fast as possible. Is that right? Or should I instead go a little slower on the high-interest debt and start investing now, so things have longer to grow over time? Appreciate the help, I have a lot to learn about this stuff. ​ submitted by /u/bikelifer [link] [comments]

Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

Let me start by saying this has been asked many times, but usually people are asking with a 4% or lower interest rate. We are at a time where mortgage rates are in the high 7% to maybe low 8% range. How would you decide whether to buy in cash versus take out a mortgage? It seems like taking out a mortgage requires a $3-5k fee for the loan initialization on a million dollar house. Given this and combined with the high interest rates, would you pay $40,000 in capital gains tax to buy a house in cash? Basically I have the money in equity. I could sell them, realize a bunch of gains, and buy the house in cash. Is this crazy? The pros for having a mortgage seem to be I can refinance later if rates go down. Also, I will have more cash on hand, which does not seem like a huge deal. I have enough to cover housing expenses. Finally, I can deduct interest paid for my mortgage on my taxes. The pros for buying in cash seem pretty straightforward. More appealing offer. Don't have to worry about 8% rate on mortgage. More straightforward sale. submitted by /u/Fi_throwaway_partner [link] [comments]

I'm no longer working and I don't plan on getting another job anytime soon. When I was working, it was a no brainer to automatically reinvest my dividends, but now that I don't have a paycheck, I'm unsure. It's my understanding that dividends are taxed as ordinary income when they're given to us - automatically reinvested or not - so would it make more sense to cash out the dividends instead of having to sell stock and thus get taxed again? To be clear, I don't get so much dividends that I can avoid selling forever, but I figure cashing out the dividends now mean I'll have to sell less later. Thanks! submitted by /u/juanjon [link] [comments]

For those of you who have retired "early" (between perhaps 50 and 60) or plan to, I'm wondering what percentage of your savings you had (or plan to have) in pre-tax, Roth, and taxable accounts. I assume the amount in taxable accounts will depend heavily on when you retire. In other words, the longer you have before you turn 59.5, the more you'll need in taxable accounts. We're tentatively targeting retirement from our primary careers between 55 and 57 with approximately $5m. In rough numbers, I'm thinking 40% pre-tax, 40% Roth, and 20% taxable. That would allow for a burn rate in excess of $200k per year before 59.5, which seems more than reasonable for us. It would also give us lots of tax flexibility. Does this pass the sniff test? What have others done or planning to do? submitted by /u/Badger-Mushroom-182 [link] [comments]

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Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

I max out contributions in our traditional 401k. That plan is about to begin offering a Roth 401k option, and I can split contributions between the two. I know what to consider with respect to contributing to traditional 401k vs Roth IRA. How does that change (or does with) with respect to traditional 401k vs Roth 401k? What is to be considered submitted by /u/FiscallyMindedHobo [link] [comments]

I am curious how other rental property owners calculate their net worth. If I simply took the rental’s expected sale price minus the mortgage remaining, it would provide a net amount that doesn’t account for Seller’s commissions, concessions, survey, title fees, etc. Seller’s are typically expected to pay an additional 6% in commissions plus approximately 1% in title commitment, survey, and various improvements or concessions. Example using the simple method: $2,000,000 in real estate with $800,000 gross mortgages = $1,200,000 net equity Example using anticipated Seller’s expenses: $2,000,000 in real estate, 7% ($140,000) expected seller fees and concessions, and $800,000 gross mortgages = $1,060,000 net equity. The $140k difference is fairly large in the net worth calculation if my plan is to eventually sell out. Am I thinking through this right? What else should I be considering? Thank you for your time. submitted by /u/DallasOil [link] [comments]

As I understand it, a 529 plan can be rolled over to the beneficiaries Roth IRA if the account is at least 15 years old and only contributions and earnings older than 5 years can be rolled over. What's to prevent me from making my wife a beneficiary (and her opening one with me as the beneficiary) and us each contributing $35k to a 529 with the intent of doing a rollover to each of our respective Roth accounts in 15 years? It's not a lot of money over 15 years but every bit helps with retirement. We also make too much for regular Roth contributions but I believe the income limit doesn't matter with this conversion. submitted by /u/hesslerk [link] [comments]

My favorite fire strategies are Mad Fientist style, and I have a question in this vein. Can anyone help me parse through the benefits of a 529 for the childless post Secure Act? My understanding and considerations; -money grows tax free in 527 -after 15 years, 527 find can be converted to Roth IRA without penalty up to $35k -conversion is limited to annual max Roth contribution Assume $11k investment in a 529 this year will yield max $35k in 15 years. With these considerations, it seems to me that the benefit of "maxing" my 527 + Roth this year is akin to investing $17,500 in a Roth this year. Otherwise stated, then benefit is an extra 15 years of tax free growth on a $11k investment, and I can contribute pretax money to my Roth years 15-20 instead of post tax money. Presume the $11k investments returns 8% and my effective tax rate is 25%. Then, the benefit is something like $11k(1+.08) to the 15 (about $880). I'm less than confident in this math and this logic. Anyone able to take me to school? submitted by /u/TacomaGuy89 [link] [comments]