All things STOCKS

[tbh]

Thank you. How much money do I need to have to begin? Any suggestions or what you are investing in as far as ETF? And what do you mean by stock splits?

A few points about ETFs to keep in mind:

- They all have their own expense ratios (ER), which the fund managers (whether passive or active) take as compensation.
- Different ETFs exist for different purposes. For example, VOO is an index fund (generally tracks the market's performance over time) whereas something like JEPI is geared toward income/dividends at the expense of growth (generally speaking).
- Depending upon your time horizon/situation, you can gear your ETF selections to reflect your goals. For example, in addition to a basket of single-company stocks I am holding two ETFs currently: SCHD (a dividend etf with a low ER that has offered solid dividend growth and appears to have a good methodology for picking the stocks it carries) and FUTY (because I prefer to go that route instead of picking individual utility companies...i.e. let someone else do the choosing/periodic rebalancing)
- As alluded to above, there are sector ETFs (consumer staples, utilities, energy, etc) that can broaden your coverage/diversity in a given sector of the market. I've found that some have higher ERs, so as in all cases, do your due diligence research before hopping in.

Best of luck! I just got started on this journey last year, so I'm still learning as well. The folks here on this thread like have been very helpful and informative.

 

[mrorange211]

FEDEX is confirming what everyone has been saying for months.

 

[Thunder Good-Oil]

Whether picking an ETF or a stock, it is a good idea to avoid those that are thinly traded. The difference between bid/ask is wider with the lightly traded names AND if they start falling they can fall harder as there isn’t a big buy side to prop up the share prices. Also, the fees tend to be higher when there isn’t a big market for those lightly traded ETFs.

 

[Thunder Good-Oil]

FEDEX is confirming what everyone has been saying for months.

$204.87 Close
$162.50 Bid
$162.61 Ask

I wonder if it falls more after the open or if the open is going to be the low. I’d like to buy some calls for a quick bounce.

 

[Thunder Good-Oil]

$266.8 52-week high
$192.8 52-week low

2.25% dividend (at $204.87)
14.3x p/e (at $204.87)

 

[Thunder Good-Oil]

$160.27/$160.50

Hold on tight, FDX

 

[Thunder Good-Oil]

UPS
$185.00 close
$172.80/$173.09

 

[Thunder Good-Oil]

FDX call options are really kind of expensive this morning. Pass.

Stock bounced off if $155. Up to $159.

 

[Big Orange#1]

The Fed Stopped Buying MBS Today.
Damn I thought they had stopped a few months ago

 

[Velo Vol]

Not 26%. Not 28%. 27%.

 

[mrorange211]

Just sitting on my pile of money waiting for capitulation.

Once I feel confident, I'm buying a ton of NET, VTI, and AMZN

EDIT: GUYS I FORGOT SOMETHING! Today is the day the blackout on buyback for corps begins until the end of the year!

 

[Go aeiou]

Just sitting on my pile of money waiting for capitulation.

Once I feel confident, I'm buying a ton of NET, VTI, and AMZN

EDIT: GUYS I FORGOT SOMETHING! Today is the day the blackout on buyback for corps begins until the end of the year!

End of year or End of qtr? End ofbuyback before earning announcement?
New to me.

 

[Deathandtaxes]

Thank you. I saw some people getting excited about it. Also we’re trading penny stocks… what is the deal with them? Some people hate them and some people love them… is it there voliatility?

 

[Deathandtaxes]

A few points about ETFs to keep in mind:

- They all have their own expense ratios (ER), which the fund managers (whether passive or active) take as compensation.
- Different ETFs exist for different purposes. For example, VOO is an index fund (generally tracks the market's performance over time) whereas something like JEPI is geared toward income/dividends at the expense of growth (generally speaking).
- Depending upon your time horizon/situation, you can gear your ETF selections to reflect your goals. For example, in addition to a basket of single-company stocks I am holding two ETFs currently: SCHD (a dividend etf with a low ER that has offered solid dividend growth and appears to have a good methodology for picking the stocks it carries) and FUTY (because I prefer to go that route instead of picking individual utility companies...i.e. let someone else do the choosing/periodic rebalancing)
- As alluded to above, there are sector ETFs (consumer staples, utilities, energy, etc) that can broaden your coverage/diversity in a given sector of the market. I've found that some have higher ERs, so as in all cases, do your due diligence research before hopping in.

Best of luck! I just got started on this journey last year, so I'm still learning as well. The folks here on this thread like have been very helpful and informative.

What are the average ER’s what’s too high and what’s too low? Or does that depend on their growth?

 

[mrorange211]

End of year or End of qtr? End ofbuyback before earning announcement?
New to me.

until 2023.

 

[Go aeiou]

until 2023.

Can you show me a source. I don't recall ever seeing that. But then my memory sucks.

 

[Thunder Good-Oil]

What are the average ER’s what’s too high and what’s too low? Or does that depend on their growth?

It depends on the investment style. Those ETFs that simply track a published index should only be about 0.1% or lower. International themes could be close to 1% as well as actively managed ETFs. Most are pretty low though - usually well under 0.5%.

The iShares Gold Fund is 0.25% and Emerging Markets are a bit under 1.0%. There are costs to store gold that probably trickle down to that funds expenses.

iShares ETFs and State Street Select Sector Funds and Vanguard ETFs have low fees. Schwab has a bunch of low fee ETFs.

It hasn’t been said yet, but ETFs create excellent diversification for the investor.

 

[Thunder Good-Oil]

Thank you. I saw some people getting excited about it. Also we’re trading penny stocks… what is the deal with them? Some people hate them and some people love them… is it there voliatility?

Those that love penny stocks don’t know what they are doing. Not that a distressed company that has run into problems and the share price has fallen very low should be lumped in with all penny stocks. But they will typically have a reverse split to get the share price elevated.

When share prices get too low the company won’t be able to trade on the NYSE or the NASDAQ. Reliable information is often hard to find. Also, brokers might put restrictions on shares of stock after falling close to a dollar or two. It might be under $4/share that some raise margin requirements.

 

[mrorange211]

Can you show me a source. I don't recall ever seeing that. But then my memory sucks.

I can't but the unspoken rule is that corps stop buying back stock after Sept 15 for tax purposes. Let me see if I can find a source.

 

[Deathandtaxes]

Those that love penny stocks don’t know what they are doing. Not that a distressed company that has run into problems and the share price has fallen very low should be lumped in with all penny stocks. But they will typically have a reverse split to get the share price elevated.

When share prices get too low the company won’t be able to trade on the NYSE or the NASDAQ. Reliable information is often hard to find. Also, brokers might put restrictions on shares of stock after falling close to a dollar or two. It might be under $4/share that some raise margin requirements.

how do people get in stocks make enough to make it worth it? What should be a reasonable goal to achieve starting out?

 

[Thunder Good-Oil]

how do people get in stocks make enough to make it worth it? What should be a reasonable goal to achieve starting out?

There is no upper limit. If somebody can consistently get a 25% annual return on $1,000 it will be over a million in less than 30 years. Without adding another dollar. It goes much faster by consistently adding more to the investment pool.

Wealth grows faster if more is added as you go. Like making annual contributions to IRAs and maxing out contributions to a 401(k) up to their employer’s maximum match. Building wealth has a lot to do with living well within your means. Somebody that spends $4 at Starbucks every morning before they go to work is spending $1,000/year. Driving a car until the wheels fall off gets you to a great financial position far faster than trading in for a new car every 2 or 3 years. It just comes down to what makes you happy. Some want to spend and enjoy all of their money in the present. There’s nothing wrong with that. They’ll have far less of that money later in life.

Doubling your investments every 4 or 5 years is very much a possibility. Some people do it much faster - typically by taking on more risk. More risk can also end badly. But being smart about taking on risk more often than not will be lucrative. One of the better sayings is it doesn’t matter when you get into equity markets - it matters how long you’re in equity markets. Growth can be explosive. Most that jump in and out are going to miss the really positive return days that can have a dramatic effect on long term returns.

Starting early is a huge advantage. People that start saving in their 20s do so much better by the time that they retire relative to those starting in their 40s or 50s.

I forget what the DJIA and S&P 500 have averaged. Somewhere between 10-15% possibly. That is easy to mirror with the SPY and DIA ETFs. Mix in the QQQs. Add a handful of shares of stock issued by really well run companies and the results will exceed those broad market averages. Even those late to the party owning Amazon or Tesla or Microsoft and many others did very well.

If taking on risk has an adverse effect on somebody’s day to day life, then they probably shouldn’t get involved. But saving exclusively via CDs, money market accounts, or short duration bonds usually will lose value over time relative to inflation.

 

[Thunder Good-Oil]

I can't but the unspoken rule is that corps stop buying back stock after Sept 15 for tax purposes. Let me see if I can find a source.

Are you guys talking about a company repurchasing their own shares or insiders selling shares after an IPO? Or employees exercising options granted as part of their compensation package?

I’m not sure, but isn’t the blackout period related to IPOs?

Companies repurchasing shares as a use of their accumulated capital (an alternative to paying out dividends, investing in fixed assets/capital equipment or R&D - growing the existing operation, making acquisitions, or simply letting it sit on the balance sheet) have to follow these rules:

Rule 10b – 18 Definition

 

[Thunder Good-Oil]

I have contracts that all expired out of the money today, but that had been in the money for a day or two. It will be interesting to see if I’m assigned. I wish that I could sell any shares assigned at the closing price - but I guess it doesn’t work that way. I need to figure out a good way to manage that risk over the weekends after expirations. I tried to close NFLX for $0.06 today but the broker displayed a message that I had to keep the cash reserved anyway. I’m still learning - just scratching the surface. Maybe if I had bought to close the contract on Thursday I would have had the investment capital available.

MSTR 220916 C 252.5 ($206.34 last trade)(no problem)

NFLX 220916 P 217.5 ($240.13 last trade)(no problem)

WHR 220916 P 144 ($145.06 last trade)( might be assigned, but not too volatile so probably not a problem unless something really bad happens before the Monday morning opening bell.)

I can’t remember - maybe the message is only if closing a contract on expiration.

I’m short contracts in MMM and AMZN that are barely in the money with expirations in the next couple of weeks. I don’t mind owning the shares, but I’d rather appreciate out of the puts and then rinse and repeat.

I’ve sold contracts almost 20x now. No disasters yet, although MicroStrategy is looking like dead money with Bitcoin under $20k.

 

[Velo Vol]

I have contracts that all expired out of the money today, but that had been in the money for a day or two. It will be interesting to see if I’m assigned. I wish that I could sell any shares assigned at the closing price - but I guess it doesn’t work that way. I need to figure out a good way to manage that risk over the weekends after expirations. I tried to close NFLX for $0.06 today but the broker displayed a message that I had to keep the cash reserved anyway. I’m still learning - just scratching the surface. Maybe if I had bought to close the contract on Thursday I would have had the investment capital available.
.

You know a lot more than I do, but for your consideration, in this video the guy talks about rolling forward the options he has sold when he realizes about 75% profit on shares that he doesn't want to be assigned.

 

[Thunder Good-Oil]

You know a lot more than I do, but for your consideration, in this video the guy talks about rolling forward the options he has sold when he realizes about 75% profit on shares that he doesn't want to be assigned.

Yes, I’ve done that a couple of times. Selling around 75% - if the contract is cheap with several days temaining. I’ve found it a good idea to buy the contract instead of squeezing out a bit more net premium. But I was 3 for 3 not being assigned this week - all contracts expired out of the money and worthless (good for me as the seller).

It is different for the puts versus covered calls. He is talking about rolling out his covered call. I’m usually looking at a put and if I do close the contract then I just move on. I might sell another with that same underlying stock, but I look at my entire list of stocks that I might sell a put against. Today I wanted to get out of one name (NFLX) and get into another (FDX). Selling puts is attractive to me when a stock that I wood like to own is selling off.

What I was wanting to do was to buy the put, even though there was near zero chance of the contract finishing in the money, so that the cash that was required to be reserved in case the put was assigned could be freed up to sell a different put. But after sending my order to the review screen the message from the broker indicated that since it was expiration Friday the cash would remain restricted until after the Friday closing bell. So I will call the broker to confirm, but I think that had I entered the order on Thursday I could have gotten my cash released and could have sold again before the weekend pause on all things options (no after hours option trading and you find out on Saturday if you have been assigned).

I haven’t sold many covered calls. I’ve sold a lot of puts.

MSTR options are just printing money. The premiums on well out of the money contracts have been quite large. I’ve been assigned twice with MSTR. But it is so volatile I’m pretty confident that I am not stuck with the shares. But if Bitcoin falls below 18k I think that I will be stuck with MSTR shares for a good while.