Must hear it!
Brag Thread
- Thread starter Lampwick 43
- Start date
Jer
'Til Tomorrow
I've recently gotten comfortable selling covered call options against stocks in my retirement accounts that have dipped way below their purchase price. This allows me to generate a 1-1.5% return each week on stocks that are otherwise completely underwater, and the money generated from those options can be reinvested in the same stock or other stocks while they're cheap to buy.
The key trick that made me comfortable with this was realizing that if a stock is above the option's strike price on expiration day, I can execute a roll operation that simultaneously buys back the stock option I originally sold and sells a new one further out into the future (potentially at a higher strike price) for more than it costs to buy the original one back, and in doing that I don't need to have free cash to cover the buyback. While this makes my Friday afternoons a bit more stressful (as I could lose thousands of dollars of potential stock value if I somehow don't execute a roll in time when necessary), the fact that I can generate serious money on temporarily tanked stocks, but still keep the stock when and if it rallies (and just forfeit selling options against it for some period of time to pay for keeping it at a higher value), makes me feel much better about my financial health in a bear market.
Also, selling covered calls means you'll never lose your shirt. Worst case scenario, the stock underwriting your call sells at the strike price of your option and you keep all of that money -- it's just less money than it would have been otherwise, and could be less than you bought the stock for.
Honestly, after familiarizing myself with covered call option trading I feel like this is something that every investor should be aware of and actively pursuing to generate extra value from the stocks in their retirement funds. But most brokers hide option trading behind a series of administrative obstacles, and I don't hear it discussed much when people talk about basic investment strategies, which is a shame.
The key trick that made me comfortable with this was realizing that if a stock is above the option's strike price on expiration day, I can execute a roll operation that simultaneously buys back the stock option I originally sold and sells a new one further out into the future (potentially at a higher strike price) for more than it costs to buy the original one back, and in doing that I don't need to have free cash to cover the buyback. While this makes my Friday afternoons a bit more stressful (as I could lose thousands of dollars of potential stock value if I somehow don't execute a roll in time when necessary), the fact that I can generate serious money on temporarily tanked stocks, but still keep the stock when and if it rallies (and just forfeit selling options against it for some period of time to pay for keeping it at a higher value), makes me feel much better about my financial health in a bear market.
Also, selling covered calls means you'll never lose your shirt. Worst case scenario, the stock underwriting your call sells at the strike price of your option and you keep all of that money -- it's just less money than it would have been otherwise, and could be less than you bought the stock for.
Honestly, after familiarizing myself with covered call option trading I feel like this is something that every investor should be aware of and actively pursuing to generate extra value from the stocks in their retirement funds. But most brokers hide option trading behind a series of administrative obstacles, and I don't hear it discussed much when people talk about basic investment strategies, which is a shame.
Your code is 666?
____no5
Free Man
Edington
Last Son of The Miracle
Forget the football, I played my first gig in over a year last night. I was covering for the guitarist in a friend's electronic 80s band, playing the music of Depeche Mode, Duran Duran, Spandau Ballet, Gary Numan, Flock of Seagulls, OMD, etc. I had almost exactly a month to learn 30-odd songs so it was pretty daunting, but I nailed it.
Great stuff! Takes some guts to get up on stage
Magnus
currently discounted
I'm not sure it's that kind of band, Brigs.
Give it time. Today Depeche Mode, tomorrow extreme gore.
MindRuler
Ancient Mariner
I´d love to hear that!
MindRuler
Ancient Mariner
I see what you did there.
Jer
'Til Tomorrow
You’ve got to Gahan it to her…I see what you did there.
Edington
Last Son of The Miracle
I don't know there's much from my gig with them, but here's a couple of old pro-shot videos with their regular guitarist. Hopefully they're available for you.
____no5
Free Man
So I brought my luggage out of the storage so I start arranging my clothes. Fuck. The code has been changed.
I start panicking and then I remembered I have posted it in the Rant thread somewhere. Performed a manual search and.. voilà!
Another one with locks: So a client arrives in town and I go to pick her up. When we arrive at her hotel she realises the code of her suitcase has been changed during the flight.
She panics and go to front desk to ask for help and in the meantime I'm trying combinations. I cracked the code in 2 minutes and became her hero instantly
Just received my final, official, sealed PhD certificate with the beautiful words summa cum laude. There was a time when I would have relished the idea of rubbing it in the face of my 8th grade teacher who laughed in my face when I told him I want to go to university and said I wasn't even smart enough to join a school of fish, but I really just pity him now because I do what I love and he obviously hated being a teacher.