It can be stressful but it feels mostly fine even I take a -200K plunge in a single day, because my account has grown to be nearly all "house money". Just pure trading profits and it's not really from saving job income. Now that's not the right mentality to approach trading as it leads to reckless risk taking which I admit to over the past couple greedy months, but it's true.
Options and real estate wedlock - a beginner level trade on a real estate backed asset
- Thread starter cyanide12345678
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I usually just close out and eat the loss immediatley if i face a losing trade. I do trade short puts on earnings for the volatility crush. I've played as short as 1 week DTE to as far as (currently) >1 year expiry.
I have never been margin called, currently I have 870K available. I'm actually planning to close out all leverage tomorrow, after META's destruction in earnings today. I have short puts in META, AMZN, GOOGL, MSFT. (You can reference my 'unrealized gain' screenshot above which displays my current positioning.) And own shares in AMZN currently. I'm leveraged about 5 : 1 by notional value.
Tomorrow i'm going to close out all my short puts and I will plan to just hold pure AMZN shares for now as I'm rapidly deleting my excess profits YTD over this past month. So i plan to be completely deleveraged in the morning.
Yes I traded in and out of SMCI and other shares of other stocks like CRWD or ZS, META etc.
And also traded in and out of short naked leveraged puts on various tickers.
I traded very heavily each day, but now I do it far less.
I racked up I think paying about -$200K in commission/fees in 2023 across the two brokerages.
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Did you have a handful of swing and intraday strategies to time those SMCI entries and exits?
Maybe some combination of indicators and other TA?
What made you choose to do pure shares for your SMCI and AMZN positions rather than selling puts?
I'm only familiar with direct shares trading since that's what I spent two years doing during the pandemic (intraday and multi-day swing momentum trading, entries and exits based on supports/resistances along with a volume analysis approach I came up with)
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Did you basically go 1 year out because vix became decently high?
Why would you do that when theta decay is extremely inefficient when > 1 year out. I used to do these, but now i am very conscious about not going over 90 days.
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Good for you for deleveraging when you are far ahead.
3.4 million by age 34 is impressive as hell.
Though tomorrow will likely be rough for you with your tech heavy portfolio.
By the way, public.com may be introducing naked puts soon, and they state that they will pay 18 cents per contract - essential give you half their earnings for order flow. So not only do they not charge a commission, they’ll pay you on top.
Their platform is pretty useless right now since it has no naked position contracts, but they will soon have it. If you paid 200k in commissions, you literally could walk away with thousands of dollars through reduced commissions.
Btw…. Are you paying 0.15 per contract or 0.65? If you’re paying 0.65 per contract then you should be calling those guys and telling them to give you a better rate or you’re leaving.
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One of the few ways to create immense wealth is by heavy concentration.
Selling puts would normally not give you 100-200 percent gains. They are slower, smaller, and usually more consistent gains especially if far out of the money.
For example - when meta was $90, i had 240 contracts on it. Would have made so so so much more if i had just gone all in and bought shares.
Similarly - when mpw was $3, i had some 1600 contracts on it - made 42k on those. But if i had gone all in with 700k, i would have made 350k in 2 months.
Puts limit losses, it’s a risk limiting strategy, protects downside at the expense of an upside. But it can be consistent growth.
Taxes. I wanted long term cap gains at the time i entered these positions. Bad idea
for smci: shares because the spreads are too wide for options to my liking for the sizing i wanted
For amzn: shares with intention to hold for a year (try to get long term cap gains)
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Selling naked puts even 1 year in advance does not get you long term capital gains, I’ve looked into this. There’s no point in holding a put > 1 year from a tax perspective.
The only way to get long term capital gains on 60 percent of your profit is to sell puts on rut,spx, and whatever the qqq index was. In the case of put selling on indexes like spx and rut, hold time can be 1 second, but you’ll still get 60 percent long term capital gains.
RUT Index Options
www.cboe.com
S&P 500 Index Options
www.cboe.com
How Are Futures and Options Taxed?
Learn about the U.S. tax processes of futures and options.
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Well. Today i learned. Cost of ignorance/assumptions!Selling puts even 1 year in advance does not get you long term capital gains, I’ve looked into this. There’s no point in holding a put > 1 year from a tax perspective.
The only way to get long term capital gains on 60 percent of your profit is to sell puts on rut,spx, and whatever the qqq index was. In the case of put selling on indexes like spx and rut, hold time can be 1 second, but you’ll still get 60 percent long term capital gains.
RUT Index Options
S&P 500 Index Options
How Are Futures and Options Taxed?
Learn about the U.S. tax processes of futures and options.www.investopedia.com
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tough day.
Meta missed q2 guideline expectations
Ibm missed
Gdp growth dropped in half of last quarter - 3.4 -> 1.7 (vs 2.4 expected)
Core Pce 3.7 vs 3.4 expected - up from 2
#stagflation
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Yikes, opened up my brokerage accounts and it looks like my avatar picture to the left!
Terrible.
This is where I like to hunt for opportunities.
Terrible.
This is where I like to hunt for opportunities.
With the positive after hours reaction to MSFT GOOGL, my account is now only down -57K for the day. I call that a victory, considering META’s disaster!
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I have an analogy to give. People that are talking thousands, not millions, say "you can't do it; why wouldn't the big guys be doing it?", because naysayers gonna naysay. So, I play this Star Trek game. One currency is latinum. There's mining for it, to refine it. But, there's a "better" one, concentrated latinum. The returns are 7x better, for the same amount of time. It's not cost effective to mine the lat, if you can refine the conc lat.
The people making individual gains might be a rounding error for the big guys. It's not worth their time.
So, you'll notice, I'll never call it "a lottery" or say "you got lucky" or screech "you can't do it!" Because, indeed, it's done!
The people making individual gains might be a rounding error for the big guys. It's not worth their time.
So, you'll notice, I'll never call it "a lottery" or say "you got lucky" or screech "you can't do it!" Because, indeed, it's done!
In the context of 57k down for 3500k net worth- that’s only a -1.6% drop 😆
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My net worth is at 2M.
I somehow find myself more and more anxious about money now that my net worth is growing. It feels like there’s more to lose now, the stakes are higher.
The nicest 1 day unrealized loss i had was around 40-50k. I was at work, could barely concentrate.
Nowadays 5-10k negative days make me anxious. I’m losing my risk tolerance as I’ve made money.
Hmm. Don’t know your situation, for me I think i’d be very uptight if i had spent 30 years saving and investing and going to retire soon. I wouldn’t have the same risk tolerance as today for sure
I been thinking about my portfolio management plan when i do retire in a couple years. Probably staying in cash and selling safe OTM cash secured puts on SPY or something.
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Buy bonds and mmf I guess
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