10 Commandments of Options Trading Strategies

Options Trading/Strategies

This blog is about the 10 Commandments of Options Trading Strategies.

Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options’ variables. Call options, simply known as calls, give the buyer a right to buy a particular stock at that option’s strike price. Conversely, put options, simply known as puts, give the buyer the right to sell a particular stock at the option’s strike price. This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy. A very straightforward strategy might simply be the buying or selling of a single option; however, option strategies often refer to a combination of simultaneous buying and or selling of options.

Options strategies allow traders to profit from movements in the underlying assets based on market sentiment (i.e., bullish, bearish or neutral). In the case of neutral strategies, they can be further classified into those that are bullish on volatility, measured by the lowercase Greek letter sigma (σ), and those that are bearish on volatility. Traders can also profit off time decay, measured by the uppercase Greek letter theta (Θ), when the stock market has low volatility. The option positions used can be long and/or short positions in calls and puts.

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Below are the 10 Commandments of Options Trading:

  • Thou shall always take 100% daily gains or 200% all time gains.
  • Do not fall into temptation and buy during the first 30 minutes of market open. (Selling positions is still permitted)
  • Thou shall not buy calls on green days.
  • Thou shall not buy puts on red days.
  • Avoid greed and do not buy consecutive options on 1 company.
  • Give thyself at least 3 weeks time to play the option.
  • End your suffering and sell if down 50% all time on an option play.
  • Avoid gluttony and do not day trade options. (Swing trades allowed)
  • Be fruitful, multiply earnings and sell covered calls if holding any.
  • Celebrate and binge drink after big gains (or losses)
  • Off topic, but relevant – You absolutely need to be doing a 401k or IRA as well as investing in crypto: 401ks and IRAs offer fantastic tax advantages that straight investing does not. Also if you have an employer who matches you are leaving money on the table by not taking advantage of that. It’s foolish. Crypto is great and should definitely be in your portfolio but it should not be your whole portfolio.
    Sources:
    1- WallStreetBets
    2- Wikipedia

Finance and Binance Breaking News – Top Stories

  • Getting margin called over 50euro got 2 days to pay, but the DTCC waves 9.6 billions..
    by /u/pokeholo23 (wallstreetbets) on June 28, 2022 at 3:23 pm

    submitted by /u/pokeholo23 [link] [comments]

  • As promised: made out okay, but it was a wild as “IV Crush” ride!! Went from -$5,000 to +$1,300. 😅 😮‍💨
    by /u/USMCHQBN5811 (wallstreetbets) on June 28, 2022 at 2:40 pm

    submitted by /u/USMCHQBN5811 [link] [comments]

  • 38yo - What can and should be to start now?
    by /u/Typical_Addition_226 (Financial Independence / Retire Early) on June 28, 2022 at 2:32 pm

    Entering my first true career. Will be working a lot, but also interested in finally enjoying life. Doing some traveling and being out a bit socially. Finally going to be making true money. I’m 38yo, and can and will give more details if possible. What should I do and what can I do other than just “save” to make up for lost time and also to steam past the deficit I’ve made for myself by lack of saving since my 20s. submitted by /u/Typical_Addition_226 [link] [comments]

  • Cathie Wood says the U.S. is already in a recession
    by /u/predictany007 (wallstreetbets) on June 28, 2022 at 2:18 pm

    Source: https://www.cnbc.com/2022/06/28/ark-invests-cathie-wood-says-the-us-is-already-in-a-recession.html Ark Invest CEO Cathie Wood said Tuesday that the U.S. is already in an economic downturn, and she admitted that she underestimated the severity and lasting power of inflation. “We think we are in a recession,” Wood said on CNBC’s “Squawk Box” Tuesday. “We think a big problem out there is inventories... the increase of which I’ve never seen this large in my career. I’ve been around for 45 years.” The innovation-focused investor said inflation has turned out to be hotter than she had expected due to supply chain disruptions and geopolitical risks. “We were wrong on one thing and that was inflation being as sustained as it has been,” Wood said. “Supply chain ... Can’t believe it’s taking more than two years and Russia’s invasion of Ukraine of course we couldn’t have seen that. Inflation has been a bigger problem but it has set us up for deflation.” Inflation measured by the consumer price index rose 8.6% in May from a year ago, the fastest increase since December 1981. Wood said consumers are feeling the rapid price increases, reflected in sentiment data that’s fallen to record lows. She pointed to the University of Michigan’s Surveys of Consumers, which showed a reading of 50 in June, the lowest level ever. The popular investor has had a tough 2022 as her disruptive technology darlings have been among the biggest losers this year in the face of rising interest rates. Her flagship active fund Ark Innovation ETF (ARKK) is down a whopping 52% year to date, falling 66% from its 52-week high. Still, Wood said her clients are mostly sticking with her and new money is coming in as investors seek diversification in a down market. ARKK has had more than $180 million in inflows in June, according to FactSet. “I think the inflows are happening because our clients have been diversifying away from broad-based bench marks like the Nasdaq 100,” Wood said. “We are dedicated completely to disruptive innovation. Innovation solves problems.” submitted by /u/predictany007 [link] [comments]

  • Goldman Sachs Sees Losses From Consumer Push Exceeding $1.2 Billion This Year
    by /u/TinyTornado7 (Financial news and views) on June 28, 2022 at 1:50 pm

    submitted by /u/TinyTornado7 [link] [comments]

  • Never Forgot The Great Market Bottom of January 27th, 2022
    by /u/JackAhler1 (wallstreetbets) on June 28, 2022 at 1:18 pm

    submitted by /u/JackAhler1 [link] [comments]

  • The Mods Are Actually Making People Money Shifting The Sub Away From Shitty Memes
    by /u/TheRealJugger (wallstreetbets) on June 28, 2022 at 12:39 pm

    Just want to give a quick shoutout to the Mods for actively trying to fix the sub from Zerg rush of shitty memes the past few months. I'm sure you have been noticing that they have been pinning DD and some other stuff. Well, yesterday, mods pinned a post that made a great return in a short period of time. Another shoutout u/NdSeIr and his earnings play on Nike. Well researched blending both broad industry data on retailer inventory but also cross analyzing commerce journal articles regarding port efficiency in China that directly effects Nikes distribution. Moreover, down in the DMs comments, OP had some great discussion regarding his option plays with some good knowledge of option mechanics and timing. Gasp, people actually making money here.... Like memes or not, that is the real reason most want to come to WSB, to actually read and discuss well thought/researched plays regardless of how risky or retarded they may be. As opposed to, "I want to suck Elons cock so bad I put my entire life savings in 2000 strike Tesla calls cause he will save humanity, TO THE MOON". Keep up the great work Mods, hopefully one day this sub goes back to discussing shit and I can get off FinTwitter because those people are more retarded then here. submitted by /u/TheRealJugger [link] [comments]

  • US IPOs Can’t Shake 2022 Slump After Thriving Through Pandemic
    by /u/TinyTornado7 (Financial news and views) on June 28, 2022 at 12:31 pm

    submitted by /u/TinyTornado7 [link] [comments]

  • US Profit Margin Estimates Are Too Optimistic, Goldman Strategists Say
    by /u/TinyTornado7 (Financial news and views) on June 28, 2022 at 12:26 pm

    submitted by /u/TinyTornado7 [link] [comments]

  • EY Pays $100 Million SEC Fine Over CPA Ethics Exam Cheaters
    by /u/TinyTornado7 (Financial news and views) on June 28, 2022 at 12:21 pm

    submitted by /u/TinyTornado7 [link] [comments]

  • Gas Taxes Need to Be Raised to at Least $2 Per Gallon
    by /u/aleahey (Financial news and views) on June 28, 2022 at 11:26 am

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

  • Rouble hits 7-year peak vs dollar after West says Russia in default
    by /u/Smithy2232 (Financial news and views) on June 28, 2022 at 10:34 am

    submitted by /u/Smithy2232 [link] [comments]

  • As 10-year US Treasury bonds doubled their yield to 3.3% since December, long duration bonds (more rate sensitive) have been crushed. Case and point, here’s the price of Austria’s famous 100 year bond
    by /u/somalley3 (Financial news and views) on June 28, 2022 at 10:34 am

    submitted by /u/somalley3 [link] [comments]

  • I remember that guy wanting to short the country of South Africa
    by /u/Naughty_Funkle_1992 (wallstreetbets) on June 28, 2022 at 10:31 am

    submitted by /u/Naughty_Funkle_1992 [link] [comments]

  • Serenity Now!
    by /u/AirDinkum (wallstreetbets) on June 28, 2022 at 10:08 am

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

  • Daily Discussion Thread for June 28, 2022
    by /u/AutoModerator (wallstreetbets) on June 28, 2022 at 10:00 am

    Read rules, follow Twitter and IG, join Discord, see ban bets! submitted by /u/AutoModerator [link] [comments]

  • just had a look at the Futures.. nice
    by /u/ijustdontgiveaf (wallstreetbets) on June 28, 2022 at 9:27 am

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

  • Daily FI discussion thread - Tuesday, June 28, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on June 28, 2022 at 9:02 am

    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]

  • Global CEOs urge G7 leaders to step up climate action
    by /u/EndlessSenseless (Financial news and views) on June 28, 2022 at 8:43 am

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

  • Wall Street still hiring?
    by /u/hamustaro (wallstreetbets) on June 28, 2022 at 7:09 am

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

  • Stop Using Robinhood
    by /u/Lumpy_Championship69 (wallstreetbets) on June 28, 2022 at 6:04 am

    Ive seen other people online explain why not to use robinhood for investing…. now i know why. Robinhood scheduled a transfer without my consent, and when i request for it back, they told me i had to wait until the transfer was completed. Well after it was completed the money never appeared in my account, and it was already taken from my checking account. the money went missing. I explain the situation to them, and they go and lock my account after i tell them this is fraudulent account on THEIR behalf. Now i have lose the money they initially unwilling transfered and I cannot access my funds for two weeks……. Long story short, take all of your money out of robinhood and find another free brokerage before they pull some b.s. like this to you too. submitted by /u/Lumpy_Championship69 [link] [comments]

  • When your broker closes out your worthless OTM options for you before close.
    by /u/goodthingshappening (wallstreetbets) on June 28, 2022 at 4:24 am

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

  • Credit Suisse found guilty in cocaine cash laundering case
    by /u/habichuelacondulce (wallstreetbets) on June 28, 2022 at 3:40 am

    Credit Suisse first major Swiss bank to face criminal trial Former banker found guilty of qualified money launderingBank plans to appeal BELLINZONA, Switzerland, June 27 (Reuters) - Credit Suisse (CSGN.S) was convicted by Switzerland's Federal Criminal Court on Monday of failing to prevent money-laundering by a Bulgarian cocaine trafficking gang in the country's first criminal trial of one of its major banks. A former employee was found guilty of money-laundering in the trial, which included testimony on murders and cash stuffed into suitcases and is seen as a test case for prosecutors taking a tougher line against the country's banks. The ruling marks another headache for Switzerland's second-biggest bank, which has been reeling from billions in losses racked up via risk-management and compliance blunders. Federal prosecutor Alice de Chambrier welcomed the verdict as "good for transparency". Both Credit Suisse and the former employee had denied wrongdoing. Credit Suisse said it would appeal against the conviction. read more The judges looked at whether Credit Suisse and the former employee did enough to prevent the cocaine trafficking gang from laundering profits through the bank from 2004 to 2008. The court said on Monday it found deficiencies within Credit Suisse both with regard to the management of client relations with the criminal organisation and with regard to the monitoring of the implementation anti-money laundering rules. "These deficiencies enabled the withdrawal of the criminal organisation's assets, which was the basis for the conviction of the bank's former employee for qualified money laundering," the court said. "The company could have prevented the infringement if it had fulfilled its organisational obligations," the presiding judge said in handing down the verdict, adding that the former employee's superiors had been "passive". Credit Suisse said the case arose from a investigation that dated back more than 14 years. "Credit Suisse is continuously testing its anti-money laundering framework and has been strengthening it over time, in accordance with evolving regulatory standards," the bank said. "Generating compliant business growth in line with legal and regulatory requirements is key for Credit Suisse." Credit Suisse was fined 2 million Swiss francs ($2.1 million). The court also ordered the confiscation of assets worth more than 12 million francs that the drug gang held in accounts at Credit Suisse, and ordered the bank to relinquish more than 19 million francs -- the amount that could not be confiscated due to internal deficiencies at Credit Suisse. The court handed the former employee, who cannot be named under Swiss privacy laws, a suspended 20-month prison sentence and a fine for money laundering.The presiding judge said she had failed to fulfil her role in the bank's "first line of defence". The former banker's attorney said she would appeal against the "unfounded and unfair decision", noting she had not made any financial gain. "This judgment places the responsibility for money laundering on people without any serious training or experience," her attorney said. Credit Suisse shares closed up 0.4%, while the European banking sector index (.SX7P) rose 0.3%. They are down more than 40% in the past year. LEGAL ACTION Corruption and money laundering experts had said the fact that Switzerland had taken legal action against a global banking player like Credit Suisse could send a powerful message in a country famous for its banking industry. "This has the potential to be a watershed moment for Switzerland," Mark Pieth, a money laundering expert at the University of Basel, said on the eve of the trial. "What is significant about this case is that Switzerland is taking legal action against a company and not just any company - Credit Suisse is one of the jewels in the Swiss crown." Swiss private banks have adopted tougher anti-money laundering checks after an international regulatory crackdown to prevent money laundering. Under Swiss law, a company can be held liable for inadequate organisation or failing to take all reasonable measures to prevent a crime from happening. In the Credit Suisse case, prosecutors alleged the former relationship manager helped to conceal the criminal origins of money for clients through more than 146 million Swiss francs in transactions, including 43 million francs in cash, some of it stuffed into suitcases. read more The relationship manager, who left Credit Suisse in 2010, was not in the courtroom on Monday. During court hearings in February, the former relationship manager said Credit Suisse learned of murders and cocaine smuggling allegedly connected to the Bulgarian gang but continued to manage cash that became the focus of the trial. The former banker said during the hearings she informed her managers about events, including two murders, associated with the clients, but that they decided to pursue the business nonetheless. Credit Suisse has disputed the illegal origin of the money, saying that a former Bulgarian wrestler and his circle operated legitimate businesses in construction, leasing and hotels. https://www.reuters.com/business/finance/court-convicts-credit-suisse-money-laundering-case-2022-06-27/?utm_source=reddit.com submitted by /u/habichuelacondulce [link] [comments]

  • Moronic Monday - June 28, 2022 - Your Weekly Questions Thread
    by /u/AutoModerator (Financial news and views) on June 28, 2022 at 2:00 am

    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]

  • Meet your wife’s boyfriend
    by /u/Radkelot1 (wallstreetbets) on June 28, 2022 at 1:38 am

    submitted by /u/Radkelot1 [link] [comments]

  • Hedge fund Three Arrows Capital defaults on 670 million loan
    by /u/firetothegreenrain (wallstreetbets) on June 28, 2022 at 1:16 am

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

  • 🔮WallStreetBets Predictions Tournament for June 2022🔮
    by /u/ThetaGang_wsb (wallstreetbets) on June 28, 2022 at 12:28 am

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

  • Fuck it… someone had to do it. $AMC YOLO up +130% / +$53,000… so far
    by /u/sloppy_hoppy87 (wallstreetbets) on June 27, 2022 at 11:27 pm

    submitted by /u/sloppy_hoppy87 [link] [comments]

  • Bulls are getting a little to excited
    by /u/Cool-Stock8685 (wallstreetbets) on June 27, 2022 at 10:13 pm

    submitted by /u/Cool-Stock8685 [link] [comments]

  • Elon Musk has not tweeted or retweeted something in five straight days. Something smells 🐟y
    by /u/McCringleberried (wallstreetbets) on June 27, 2022 at 9:42 pm

    Musk cannot keep hit mouth shut for five seconds let alone five days. He recently also passed the 100 million follower count on twitter and not even a tweet or snarky comment about that. Either something disastrous is going on at Tesla or SpaceX or his lawyers have advised him to STFU. Whatever the reason, I don't see a reason he would go this long without tweeting unless something bad is happening. Might be time to load up on some Tesla and other EV shorts retards. Twitter for Proof submitted by /u/McCringleberried [link] [comments]

  • Recession indicator: Apes going to wok!
    by /u/-Jack-The-Lad- (wallstreetbets) on June 27, 2022 at 8:57 pm

    submitted by /u/-Jack-The-Lad- [link] [comments]

  • Maxine Waters released a report on same day as Roe v Wade claiming the DTCC 'Waved 9.6B Collateral obligations' for Robinhood Broker on Jan 27th 2021.
    by /u/QuartzPuffyStar (wallstreetbets) on June 27, 2022 at 8:46 pm

    https://preview.redd.it/6uau4fn478891.png?width=640&format=png&auto=webp&s=a05d387e50926a339f5ab22dcb508699123050c6 Maxine Waters was involved in the Congressional Hearing of Gamestop vs Robinhood back in Jan/Feb of 2021. After Robinhood forcefully turned off the Buy button but still let investors sell, the DTCC let Robinhood off the hook by Waiving 9.6$ Billion in Collateral obligations that Robinhood owed. More than Robinhood had at the time. Screwing over investors and denying them of a "free market". This report was released on the same day as the Roe Vs Wade Overturn and was overshadowed completely by the MSM. They don't want you to see this. Oritinal poster: u/XSlapHappy91X [Had to repost due to the inability to cross-post] Report: https://financialservices.house.gov/uploadedfiles/6.22_hfsc_gs.report_hmsmeetbp.irm.nlrf.pdf submitted by /u/QuartzPuffyStar [link] [comments]

  • Bankman-Fried’s FTX Is Seeking a Path to Buy Robinhood
    by /u/TinyTornado7 (Financial news and views) on June 27, 2022 at 7:18 pm

    submitted by /u/TinyTornado7 [link] [comments]

  • Major recession indicator part 2 🫣
    by /u/fairebandeapart (wallstreetbets) on June 27, 2022 at 6:54 pm

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

  • Don't panic sell, don't be a l0s3r
    by /u/dfreeman23 (wallstreetbets) on June 27, 2022 at 5:58 pm

    submitted by /u/dfreeman23 [link] [comments]

  • CNBC is Bipolar
    by /u/Miserable-Branch7841 (wallstreetbets) on June 27, 2022 at 3:20 pm

    submitted by /u/Miserable-Branch7841 [link] [comments]

  • Thoughts On Completing One Year Of FI
    by /u/johnmh71 (Financial Independence / Retire Early) on June 27, 2022 at 2:55 pm

    Last year at this time I was completing my last week of full time employment prior to retirement. I was at 75% of my full FI number and decided to go the Barista FI route as I was done with full time work at that point. My original plan was to get a 25 hour a week part time job that paid at least $17 an hour. I utilize a health share for health insurance, so that wasn't a factor. I live in MA, so I felt this work plan was doable. So I left my job on 6/30/21 with no part time job in place. That was a mistake. I assumed that finding the right position would be easier than it was. I found a mobile power washer position for 3 days a week with good pay. This proved to be a much more physical demanding job than I thought it would be. I had back surgery 4 years ago, so I am not physically where I want to be. Add the other joys of working outside and I decided to move on in Sept. My next position was in event security. It was not consistent as far as scheduling, but the pay was right and I liked it. So I looked into other possibilities in terms of security positions. I found a front desk security position in a Class A office building in October that was 8 hours every Thursday and Friday. Not the best pay, but it is consistent and I like everything about it. I may add one day a week with another company if possible. It is tough to find something that will allow you to work only one day, but I have plenty of time to look. So if I could go back to a year ago, I would do more research on the part time market in my area. I would get a better understanding of the jobs out there and which would be best for me. Then keep working full time until I found something. I love what I ended up doing and have plans to change this point. I am surrounded by other retired guys, so I feel like I am in my element. My only regret is that the transition could have been smoother. Overall, FI has been great. I just went ziplining in NY this past weekend and I am going to be spending the next two days in Maine before I come back to work my two days this week. I am living a life that I was never able to live while working full time. I feel the best that I have felt physically and spiritually in the last 25 years. If you are on the fence, do it. You won't regret it. submitted by /u/johnmh71 [link] [comments]

  • Down 15% YTD
    by /u/ICumToOsama2021 (wallstreetbets) on June 27, 2022 at 1:45 pm

    submitted by /u/ICumToOsama2021 [link] [comments]

  • Lovely day all
    by /u/lobster_drill (wallstreetbets) on June 27, 2022 at 12:36 pm

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

  • Daily FI discussion thread - Monday, June 27, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on June 27, 2022 at 9:02 am

    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]

  • Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice - June 27, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on June 27, 2022 at 9:01 am

    Need help applying broader FIRE principles to your own situation? We’re here for you! Post your detailed personal “case study” and ask as many questions as you like, or help others who’ve done the same. Not sure if your questions pertain? Post them anyway…you might be surprised. It’ll be helpful to use our suggested format. Simply copy/paste/fill in/etc. But since everybody’s situation is different, feel free to tailor your layout to your needs. -Introduce yourself -Age / Industry / Location -General goals -Target FIRE Age / Amount / Withdrawal Rate / Location -Educational background and plans -Career situation and plans -Current and future income breakdown, including one-time events -Budget breakdown -Asset breakdown, including home, cars, etc. -Debt breakdown -Health concerns -Family: current situation / future plans / special needs / elderly parents -Other info -Questions? submitted by /u/AutoModerator [link] [comments]

  • Weekly FI Monday Milestone thread - June 27, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on June 27, 2022 at 9:00 am

    Please use this thread to post your milestones, humblebrags and status updates 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! 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]

  • Sanity Check: Living off dividends
    by /u/almost_retired (Financial Independence / Retire Early) on June 27, 2022 at 12:34 am

    First off, let's start with a disclaimer: I have never pursued a dividend strategy or build my portfolio around one. My entire portfolio was build around three funds, VTSAX, VTIAX and VBTLX. With that out of the way, here is my current situation and the basis of my question: Currently my 3 fund portfolio pays out about $60K a year in dividends and distributions. During COVID my wife and I moved to a VLCOL area and we now live comfortably on $45K a year, with all of our material needs met, including medical and whatnot, and we plan on staying where we are permanently. So we are thinking about pulling the trigger and instead of trying to figure out a withdraw strategy that might involve variable withdraw rates, guardrails, floors, CAPE, etc...why not keep it simple and rely solely on the dividend payouts and forget about everything else? Am I missing anything here? Are there any pitfalls from this approach that I am failing to consider? One thing that comes to mind is that dividend payouts might not track inflation perfectly, but since our current expenses are $15K bellow the payout, we should be fine. And worse comes to worse, I can always sell some stock down the line to cover the difference if in a particular year we have an emergency that requires large expenses beyond what the yearly dividend payout is. ​ Let me know if you guys think I am missing something. submitted by /u/almost_retired [link] [comments]

  • Those who are relocating in retirement: What's your criteria?
    by /u/curiously_clueless (Financial Independence / Retire Early) on June 26, 2022 at 7:49 pm

    I know many folks are retiring where they currently live. It makes sense, you've put down roots. 'Build the life you want' and all that. For those of you who intend to move in retirement, what's your criteria for selecting a location? For me, a few things come into play. Can I get decent internet to a location. Preferably municipal broadband. I know this sounds like a peak nerd concern, but shitty internet has a real impact on my quality of life. The local climate. I refuse to live in a place where people are basically forced to live indoors for half the year to deal with the heat or cold. Cost of living. IMHO the only reason to live in a HCOL location is that you either have all your family and friends there, or you're forced to live there for work. Think Bay Area. If one can work remotely I see no reason to pay extraordinary high costs to live in a HCOL location when one can find M/LCOL locations with a lot of the same amenities. Taxes. Given that I'm going to be converting my traditional accounts to roth accounts I'd appreciate having low taxes while doing so. Close enough to my parents to be able to visit them with a day's drive. Tolerance. It doesn't exactly need to be a liberal bastion, but at least a place where people can 'live and let live'. Unfortunately this disqualifies some LCOL locations. A decent hospital within a 30 minute drive. If you've made a similar calculus what are your criteria? submitted by /u/curiously_clueless [link] [comments]

  • Russia about to default
    by /u/Bjornormus (Financial news and views) on June 26, 2022 at 4:57 pm

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

  • Unpopular Opinion: The practice of forcing almost all discussion in this forum into daily and weekly threads is simultaneously inefficient and discussion killing. Can we have a discussion about eliminating this rule?
    by /u/cv5cv6 (Financial Independence / Retire Early) on June 26, 2022 at 4:18 pm

    I think the above described rule hurts this forum, as unlike things are grouped in the daily threads, leading to epic length daily threads with all sorts of unrelated content jostled together, and discourages multi-day discussion on a particular topic (say, for example, a nuanced discussion on how to determine equity/bond allocation of an investment portfolio). Compared to r/fatfire, r/leanfire or r/investing, this forum seems flat and undersized and I think the above rule is a primary cause. Edit: This this thread disappeared after about 35 minutes and 20 comments this morning, I'm assuming due to complaints and auto-moderation. It just opened up again this afternoon, presumably due to a manual release by one of the moderators. So kudos to you phantom moderator for allowing free discussion. submitted by /u/cv5cv6 [link] [comments]

  • Daily FI discussion thread - Sunday, June 26, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on June 26, 2022 at 9:02 am

    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]

  • What are the best skills to pursue to become FI as fast as possible?
    by /u/Top-Computer1773 (Financial Independence / Retire Early) on June 25, 2022 at 7:19 pm

    Give me three things you would say are the best things to improve in order to become financially independent. Skills that are highly sought after and paid well for. ​ Edit: I'm in sales. Been here at my company for 6 months. Make about 7k a month. Company was bought by a global giant. Single mid 20's in a relatively cheap big city. I will be able to save 50% or more of my salary. 1,5k expenses. Considering learning Python as a side thing and see where this skill will lead me - if I'll manage to build my own services. ​ Edit 2: Some people here talk about me seeking a "get-rich-quick scheme". I'm not looking for a overnight success or anything. There are some skills that require less time spent on them for a higher ROI compared to other skills. So ROI/time is what I'm talking about. Medicine is a highly paid and sought after skill, however the training and debt and time makes it less ideal to become FI as fast as possible. But it doesn't mean it's a bad skill or thing to pursue medicine, as it is very satisfactory for some individuals to help other fellow humans and be trusted with their health. Time is limited and I might only live till 50 or 60. Or even 40. I want to be set free as fast as possible and enjoy life young and not old. Quick =! easy. Easy and difficult is relative. submitted by /u/Top-Computer1773 [link] [comments]

  • Bill Ackman Rings Inflation Alarm, Predicts Fed Hikes Rates to Over 5%
    by /u/ProxyZee (Financial news and views) on June 25, 2022 at 3:37 pm

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

  • Daily FI discussion thread - Saturday, June 25, 2022
    by /u/AutoModerator (Financial Independence / Retire Early) on June 25, 2022 at 9:02 am

    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]

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