All things STOCKS

#18,528
#18,528
95 Vol Alum said:
Can't say I'm a fan. Definitely will steer clear of PE investments.

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I'm not inclined to jump into PE either, to be honest, but making them available isn't necessarily a bad move. I'd hope there would be some sort of speedbump or extra acknowledgement (like Fidelity requires for MLP investments) so folks take a moment to learn/understand any special considerations re: PE investments before they bet the nest egg, so to speak.
 
#18,530
#18,530
Jack Burton said:
Alright fellers, share your most speculative moonshots. I may be 98% Boglehead but I’m ready to go wild with that other 2%.
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(SMR) NuScale Power Corporation
(AVAV) AeroVironment, Inc.
(CRM) Salesforce, Inc.
(TSLA) Tesla, Inc.
(UPS) United Parcel Service, Inc.
(MSTR) MicroStrategy Incorporated (Strategy)
 
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#18,531
#18,531
Jack Burton said:
Alright fellers, share your most speculative moonshots. I may be 98% Boglehead but I’m ready to go wild with that other 2%.
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I'm using a decent chunk of my portfolio on a wheel options strat right now. I'm on my 5th consecutive positive week with it. 3 weeks ago was a SOFI call (assigned with a premium+profit), last week was RUN (assigned+profit), this week is SOUN and it's starting off great.

I just pick high IV holdings with positive momentum/beating short term MAs. Once it's called away I just take the capital and profits before changing it up to something with a better premium the next week.
 
#18,533
#18,533
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#18,534
#18,534
05_never_again said:
I don't plan to do it either, but I don't see why there is such an aversion to just making them available. If you don't like PE, or think it's too expensive or risky, then just don't do it.
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Less transparency. Less regulation. Less liquidity.

It should be an option for accredited investors only. It would be abused.

But since I own BX, MS, APO, CG, and KKR … I’m all in. SCHW and BLK might participate to some degree as well in the PE universe.
 
#18,535
#18,535
DinkinFlicka said:
I'm using a decent chunk of my portfolio on a wheel options strat right now. I'm on my 5th consecutive positive week with it. 3 weeks ago was a SOFI call (assigned with a premium+profit), last week was RUN (assigned+profit), this week is SOUN and it's starting off great.

I just pick high IV holdings with positive momentum/beating short term MAs. Once it's called away I just take the capital and profits before changing it up to something with a better premium the next week.
Click to expand...

Selling cash reserved puts has been easy money for a while. Selling the covered calls hasn’t been working too well. I try to set my PUT strikes low enough to avoid getting assigned and then rinse/repeat. 1-2 week expirations. Occasionally 2-3, but I don’t like to tie up the capital that long.
 
#18,536
#18,536
Thunder Good-Oil said:
Less transparency. Less regulation. Less liquidity.

It should be an option for accredited investors only. It would be abused.

But since I own BX, MS, APO, CG, and KKR … I’m all in. SCHW and BLK might participate to some degree as well in the PE universe.
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More options are better than less options. 10 years ago, many 401Ks were loaded with crappy funds...

People demanded funds put in targeted date funds, index funds, and allow for Roth.
 
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#18,537
#18,537
Thunder Good-Oil said:
Less transparency. Less regulation. Less liquidity.

It should be an option for accredited investors only. It would be abused.

But since I own BX, MS, APO, CG, and KKR … I’m all in. SCHW and BLK might participate to some degree as well in the PE universe.
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There are plenty of ways for retail investors to blow themselves up. This is just adding another.
 
#18,539
#18,539
05_never_again said:
I only own individual stocks in a managed account, but I'm thinking of adding AAPL and CVX to one of the accounts I manage myself.
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AAPL hasn’t figured out AI yet. But they’re very much a consumer hardware business. Less manufacturing outside of the US will hit margins in the near term. But that shouldn’t be news to anybody and is already reflected in the price.

CVX is a nice, solid, boring Dow component dividend payer (4.4%). But earnings are expected to be flat next year.
 
#18,540
#18,540
Thunder Good-Oil said:
Selling cash reserved puts has been easy money for a while. Selling the covered calls hasn’t been working too well. I try to set my PUT strikes low enough to avoid getting assigned and then rinse/repeat. 1-2 week expirations. Occasionally 2-3, but I don’t like to tie up the capital that long.
Click to expand...

That's one way to do it.

My calls usually get assigned so I take the profits, premiums and find a higher IV stock the next week for fresh exposure. Let's me pick and choose the hot potato.
 
#18,541
#18,541
DinkinFlicka said:
That's one way to do it.

My calls usually get assigned so I take the profits, premiums and find a higher IV stock the next week for fresh exposure. Let's me pick and choose the hot potato.
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I pretty much follow just a few rules USING, rather than trading, options.

Only sell cash reserved puts if I’d like to own the underlying shares.

Only sell covered calls when I don’t mind selling the underlying shares.

So I’m writing options instead of setting limit orders. But if the “limit order” fails to execute, I get paid for trying.

I keep the expiration date only 2 +/- weeks out. I try to find a strike that I don’t think has a strong possibility of hitting. The premium of is usually 2-4%. Occasionally I’ll stumble into something that might have a 5-10% premium with tge near term expiration (SMCI, HOOD, MSTR, PLTR, NVDA).
 
#18,542
#18,542
Thunder Good-Oil said:
I pretty much follow just a few rules USING, rather than trading, options.

Only sell cash reserved puts if I’d like to own the underlying shares.

Only sell covered calls when I don’t mind selling the underlying shares.

So I’m writing options instead of setting limit orders. But if the “limit order” fails to execute, I get paid for trying.

I keep the expiration date only 2 +/- weeks out. I try to find a strike that I don’t think has a strong possibility of hitting. The premium of is usually 2-4%. Occasionally I’ll stumble into something that might have a 5-10% premium with tge near term expiration (SMCI, HOOD, MSTR, PLTR, NVDA).
Click to expand...

That's how I played until recently. Though, I still call audibles. For example, today with SOUN, it blew past my call high enough to BTC the calls and sell the stock. It was pretty much the same amount I would have made on expiry with premium+gain, and since it's Monday, I was able to purchase another stock and write calls on that while locking in a profit I had planned to make a week later.

It takes the emotional decision making out of the equation for me and gives me a dynamic way to grow my holdings. Dare I say it's... fun.
 
#18,543
#18,543
BigOrangeMojo said:
More options are better than less options. 10 years ago, many 401Ks were loaded with crappy funds...

People demanded funds put in targeted date funds, index funds, and allow for Roth.
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More good options are better than less, yes. Moving from pensions to PE and bitcoin doesn’t feel like a better risk model for the middle class.
 
#18,544
#18,544
It seems like opening up retirement accounts to include PE will mainly provide liquidity for the 1% or less that already participates in private equity. In effect it provides fund managers with an outlet to unload their garbage without government regulation. It ought to be restricted to only include accounts of a certain amount (perhaps $1,000,000) and even the low 7 figure accounts should maybe be only allowed to invest up to 10-20% of the account value in PE.

The middle class and below will be the bag holders. Generally more regulation is bad, but in this case it would be warranted.

This is the same group that has their very own tax avoidance legislation. Carried interest.
 
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#18,546
#18,546
95 Vol Alum said:
More good options are better than less, yes. Moving from pensions to PE and bitcoin doesn’t feel like a better risk model for the middle class.
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Its a money grab for campaign contributors that manage these accounts. High risk and can't be sold when the individual investor loses confidence in it. That this level of speculation gets us out of social security problems is nonsense.
 
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