Still think TITNC3: Return of the Iceberg was peak

its tantalizing, but i jeep thinking that I'd be stupid to add more since its only going down. plus fed rate today so it'll probably drop more

 

^^^ you should be able to buy calls, not sure about day-of. I haven't done that before.

Anyway, point being it would allow a stop loss on calls. If I were in your shoes I would kill robinhood, and go to fidelity instead of TD

 

definitely will be making the switch, only thing nice about robinhood is i can transfer money and 2 mins later use that money...even though it takes a week to settle

fidelity only allows settled funds to be used

 

TD is the same.

This includes sales too. I can't sell 100 shares of F to then buy options immediately, or something like that. That all has to settle first. That said, IF You got approved for margin (is that the right word?) and kept track, you could probably trade "on margin" until things settle.

 

they approved me for margin before options lol

i dont allow my self to trade on margin

 

Re: Margin, me neither. I would IF it was the scenario I talked about above. Just playing with unsettled funds I know I 'have'. That said I THINK margin takes a % like a loan.

I don't do naked calls, puts, or margin. I'm in this for some fun, but mostly actual investing and looking toward the future. Not to lose my shirt for the reddit karma.

 

yea trading on margin is like using a credit card to buy stonks...no thanks

 

https://www.tdameritrade.com/pricing/margin-and-interest-rates.html

I don't know how the calculate the interest if it's daily, etc. - but there is an interest to using margin. So, nevermind. The only reason I would have used it was to float purchases while stuff is settling. At least a credit card I can use interest free (that's what we do). It makes sense, I just won't be partaking even for my own potential limited use case.

Margin Rates
Margin interest rates vary due to the base rate and the size of the debit balance. When setting base rates, TD Ameritrade considers indicators like commercially recognized interest rates, industry conditions related to credit, the availability of liquidity in the marketplace, and general market conditions. As of September 23, 2022 the current base rate is 11.25%.

 

Do you have a mortgage or any other debt?

 

yea a mortgage and student loans if you want to count my wifes debt as my own because well....lol

 

So really, you're ok trading on margin, you just don't want margin call risk.

 

Meh, mortgages and trading on margin are way different. A foreclosure soup to nuts takes about 12 months from the first payment to "I am now being forcibly removed from the property".

 

explain, because i never really looked into margin trading. only thing i read about it was that its like taking a loan from the broker to buy stocks and any profit will be less the interest

 

The difference is in the terms with which the debt can be recalled.

If you do a cash out refi on your home and use the money to invest, it's mechanically the same because dollars are fungible.

What cannot happen with a mortgage is your servicer deciding you need to deposit 40% more collateral within 24hr because they don't like what home prices have done. And if you don't they sell your house an settle the debt for you.

Ya'll ain't afraid of margin, you're afraid of call risk - using other forms of debt gives you contractual protection against it in the loan terms.

 

Exactly.

Margin account debts can be margin called: i.e. your portfolio is down 50%, either post more collateral or we sell your stocks until the loan:collateral ratio makes sense again.

Other forms of debt typically don't have this mechanic.

So the issue isn't using debt to invest, it's how that debt can be recalled and the risks associated with it.

 

What the ever loving fuck was that?

 

Jpow??

 

Sure would have been nice to still be holding NVDA calls
LOLCANTWINLOL

 

Well F#CK this spike right in it's butholeeee