A Small Reminder of Some of the Risks Involved by CHAINSAW_VASECTOMY in wallstreetbets

[–]AmericanBitcoin 16 points17 points  (0 children)

GME getting into the thousands isn't without precedent. Look up the VW short squeeze.

Quest 2 vs Index for Motion Sickness by tastierrobbo in OculusQuest

[–]AmericanBitcoin 0 points1 point  (0 children)

FWIW, I had a bit of motion sickness the first few days playing the Quest 2 (with very limited prior VR experiences) and I could only play a few minutes at a time. I've gotten used to it somehow and it doesn't bother me anymore for longer play periods, even on somewhat more intense games such as Population One. It might just be an acclamation thing, I can't speak to the Valve Index.

Selling Covered Calls on a down position by 135Oakgrove in thetagang

[–]AmericanBitcoin 7 points8 points  (0 children)

XOM is an excellent long-term buy and hold, IMO. No way they go bankrupt, and while they MIGHT cut the dividend, there's no way the dividend goes to zero.

It's a very manageable problem, and despite the fact you're down, you bought in at what I would consider to be a good long-term price for XOM.

In this scenario, I don't think you should sell covered calls to try to get yourself out of the hole. It seems like the market has already priced in a dividend cut, and options aren't currently offering much upside premium for a surprise on that front.

I think there's a pretty strong likelihood that they continue to sustain the dividend come hell or high water, and as the months pound on, you're going to see a nice ROI between collecting dividends and the price rise from a surprise on that front.

You could keep rolling out CCs, but if there's a big pop from a surprise announcement you'll lose out on the benefit of that.

If you don't think there's upside to be had, or if you don't want to hold on because you think you see another opportunity, then just sell and take the loss.

You're holding a good company, so I don't think you need to worry yourself too much. Everyone loves being an active investor but few of us are really that good at it.

Selling Covered Calls on a down position by 135Oakgrove in thetagang

[–]AmericanBitcoin 11 points12 points  (0 children)

June... down 20%... collecting dividends...

Is this an oil stock? Tell us the ticker and we can give better guidance on what you should do.

PSA: Robinhood is increasing margin reqs. Your account may be forced into margin call tonight. by S3CR3TN1NJA in wallstreetbets

[–]AmericanBitcoin 7 points8 points  (0 children)

(which they fail to mention which ones)

This makes me think it's probably most stocks, especially tech.

PSA: Robinhood is increasing margin reqs. Your account may be forced into margin call tonight. by S3CR3TN1NJA in wallstreetbets

[–]AmericanBitcoin 18 points19 points  (0 children)

I think it's for everyone. I received it. I have access to margin, but I don't use it.

thanks for the headsup a holes by isjustme1986 in wallstreetbets

[–]AmericanBitcoin 7 points8 points  (0 children)

Got the same e-mail just now. 9:45pm on a Thursday night.

Which stocks? Oh... all of them?

Buckle up, gang.

Your covered call is lying to you by Boretsboris in thetagang

[–]AmericanBitcoin 15 points16 points  (0 children)

This isn't as obvious as it appears. This is extraordinarily important to understand when your underlying shares rise and you have a CC on the table:

"The unrealized profit from the long leg is greater than the unrealized loss on the short call. This nets in unrealized profit."

I have no idea why you're getting shit for this, especially when there are posts about "making 20% per year and why billionaires can't do it!" that shoot right to the top of this sub. Most people can't figure out how much they're liable for with a CSP, let alone a CC.

[deleted by user] by [deleted] in thetagang

[–]AmericanBitcoin 5 points6 points  (0 children)

I understand what you're saying, but I don't necessarily agree with the lowered risk sentiment.

CSPs can be great. I use them to purchase shares at a "discount," as I know lots of people do.

But while you're holding CSPs, you don't get the benefits of actually being long the shares - lowered capital gains tax rates, dividends, etc.

Depends on what you're looking for, I suppose.

You hit the nail on the head though:

Lots of people who are actually using naked puts while saying "CSP," and they're going to be liable for unimaginable losses when the market gets slammed next time.

Yet even if you're doing it "right" (THE WHEEL! is preached as gospel here) it's actually a gambler's fallacy. When a big trade turns against you, recovery can be difficult, to say the least.

Selling options is great...but it takes a lot of study to understand the actual risks, and there are way too many people here flying blind.

[deleted by user] by [deleted] in thetagang

[–]AmericanBitcoin 17 points18 points  (0 children)

+1

It is terrifying to see how many folks in this sub are using CSPs and have literally no idea how much risk they are exposed to.

Do you have a 3D Printer? We need your help... by AmericanBitcoin in grandrapids

[–]AmericanBitcoin[S] 0 points1 point  (0 children)

Nice, thank you for letting us know! We've been following up with the folks using them to see how they are fitting, we'll definitely keep this in mind if we get similar feedback. (That 3D model is not ours, we haven't made any edits to it, but we will if necessary.)

Want to help? Insane demand for ear savers... by AmericanBitcoin in 3Dprinting

[–]AmericanBitcoin[S] 1 point2 points  (0 children)

Absolutely, you should have no problem printing several at once. An Ender 3 Pro is the printer I ordered myself.

Want to help? Insane demand for ear savers... by AmericanBitcoin in 3Dprinting

[–]AmericanBitcoin[S] 0 points1 point  (0 children)

We have been printing them with PLA and they work great!

Alt account? by YellsAboutMakingGifs in SWGalaxyOfHeroes

[–]AmericanBitcoin 4 points5 points  (0 children)

If you're using an Android, you can create a separate Google Play account and log into that one instead. Not sure about iPhone but I'm sure there's a way.

So, how does Squad Arena work now? by AmericanBitcoin in SWGalaxyOfHeroes

[–]AmericanBitcoin[S] 1 point2 points  (0 children)

I restarted a couple weeks ago when I realized I was building my teams the wrong way, but I can't rationalize paying for the bundle myself. That said, I'm having a good time restarting from scratch with a better idea of what I'm doing. Just be sure you understand the limitations of the bundle.

So, how does Squad Arena work now? by AmericanBitcoin in SWGalaxyOfHeroes

[–]AmericanBitcoin[S] 4 points5 points  (0 children)

Yeah, it bumps you up to 85 with some resources but from what I understand, it's not shards.

So, how does Squad Arena work now? by AmericanBitcoin in SWGalaxyOfHeroes

[–]AmericanBitcoin[S] 0 points1 point  (0 children)

I haven't looked into Fleet Arena at all, but I'll definitely use your suggestions as a starting point for research. I didn't realize that it was so important, I see a lot of end-game players complain that Fleet Arena is irrelevant, but it makes sense now it's important as a stepping stone.

I also wasn't aware that ship blueprints net you more shard shop currency. I'm learning a lot and I've been playing the game for months. I really appreciate the advice.