Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

So, if I'm reading that right, I don't technically have to have the liquid funds to exercise the contract as long as I have available buying power on margin.

 

I work in aero but my company does auto too, we're a T1 to Ford so sweet, sweet x-plan pricing (that the dealer could match on their own anyway....)

Just saw the news from Farley that he was promising a flawless rollout.

There's design stuff that gets outhoused that Ford has no control over. Plus new design parameters that they can only test so much, but as it turns out running them 20 hours a day in Texas heat and dust on the farms is different than running them in the cold Michigan hills without dust. So, there will be some potential design fixes along the way. I can understand the drive for production to be zero defects though. That's what blew up some of the mustang 2.3 engines, they used the gaskets from the fiest (focus?) 2.3 with the wrong ports blocked/open.

why it scares me: Ford will be less inclined to accept ownership of a problem if it destroys their zero defect promise they're making today. That's what I like about the domestics - they're not expected to be "perfect" like Toyota. We're just told a diff howl and weird shift mapping is normal and deal with it, rather than Toyota accept any sort of defect.

 

This email scared me away from options even more than I already was

 

Hey @TreeFortRichard how's NLOK looking today?! You still in it to win it?!?!

 

Maybe an options guru can explain to me why the options for TSLA are so crazy high across the board?

 

because volatility. The chance of the stock tanking or ripping is too high, in both directions. Therefore, they're all expensive since all scenarios are considered likely.

 

So while this graph doesn't look too crazy to me, it's the 70% volatility that drives the prices of the options up?

I'm trying to wrap my head around why it's ALL of them.

 

It's a lot more complex then just implied volatility.

https://optionposts.com/how-are-options-priced/

 

Thanks for this
So much to learn....

 

@Boyk1182 would you average down XOM right now if it was already 17% of your portfolio
or anyone else for that matter?

 

I wouldn't if it was that much of my portfolio. For me XOM is 1.68% (should be higher but has performed poorly). I wouldn't have any company take up 17% though, maybe an ETF.

 

hey. hey. @Boyk1182 everyone wants to talk to you

Nah mine's more of a note I just thought of. SPHD controls and buys and sells stocks (as do DIV, SDIV etc) hunting for dividends. I asked about if you would buy SPHD or mirror their strategy on your own, anyway the point I just thought of: If you buy SPHD and hold it, it becomes a long term hold. If SPHD drops, say, MO (for some odd reason) and you wanted to mirror that, you now have a potential short term gain to pay more taxes on than if you just held SPHD and they handled that. You'd have to do the maths out for tax rate vs. expense ratios, to see if it would make more sense to DIY or just buy SPHD/ETFs instead.

 

I know man.. but I kept averaging down. Sucks. I should have waited until I was down more than 10% before I averaged.

 

I was thinking about that when we discussed it before but I think it was after I already posted. But yea, capital gains and losses would make doing any ETF strategy yourself either very good (taking losses for taxes), or very bad (taking a lot of capital gains). That's what the expense ratio is for in my opinion.

 

I’ll put it this way, I’ve doubled my ownership since last dividend..

 

If they keep paying the dividend, you'll be doing just fine. That's the risk I guess, but if they do you'll kill it (especially when XOM goes up, because it will someday).

 

What’s you guys thoughts on IBM? They pay a good dividend and are one of the forgotten about tech stocks. I think their price is more real and I would prefer to buy them over other, what I believe to be, overinflated tech stocks

 

Yes. Up 7.6% since buy. But I like that as a long hold.

Don't be afraid of the options warning email. I get them for every option 3 days before expiration and then 2 and 1...Even when they are WAAAAAyyyy out of the money...I had some for the SNAP $25 21AUG20 that expired worthless...I try to close them for $1 or $0.01 because you pay $0.65 per contract per trade so if you don't close it for at least $1 you lose even MORE money...

 

I never could figure IBM out, haven’t bought but have looked into it.

 

Halliburton has a 3.6% dividend, just fyi