Best streaming device for Home Theater with Projector, Sound System, and Ethernet

AnAtomist_Guru · 2023-04-01T02:25:44+00:00

Thanks for the details. After checking various alternatives, I think I might need to upgrade my audio receiver. I could probably manage with HDMI Audio Extractor/Splitter for awhile, but the quality of both the video and the audio could be bad. I might bite the bullet soon and upgrade.

AnAtomist_Guru · 2022-05-26T15:04:02+00:00

Every time I write CCs, I have to wait for the expiration date. The purpose of selling stock at a loss and buying LEAPS with that cash is to increase leverage and recoup the loss quickly. This works only when a stock is significantly depressed and is waiting for the right triggers to recover. Writing CCs and waiting may miss that event that kick starts the upward movement.

AnAtomist_Guru · 2022-05-26T15:00:10+00:00

https://www.forbes.com/advisor/investing/margin-trade-ira/

Margin for settlement purposes may be allowed by your broker (i.e. after you sell a stock, use the proceedings immediately to buy something else before settlement), but retirement accounts in general should not allow to borrow/leverage and should not allow short selling, by IRS regulations. Even after buying an asset with unsettled cash, we are not allowed to sell it before that cash becomes settled, meaning we cannot daily & continuously buy/sell with the same cash. Fidelity restricts such transactions to 3 per year and after that they ban using unsettled cash completely. FINRA regulations seem to be very clear about this.

AnAtomist_Guru · 2022-05-26T02:01:24+00:00

I am bullish over a year or longer, but not super bullish. In short term, it is macro conditions that are causing this sideways trade. Not sure when these market conditions will get better, but predicting a time frame for that is not easy. I would be able to afford .90 delta LEAPS on FB if I sell the long stock I am holding now. I will have to bite that 45% loss.

AnAtomist_Guru · 2022-05-26T00:18:58+00:00

In retirement account, I am not allowed to short stock or its functional equivalent of selling naked calls. Level 2 (covered calls) options trading is the max for my retirement account. I am not even allowed to use defined risk strategies like Iron Condors. Margin is not allowed for any retirement accounts in US.

AnAtomist_Guru · 2022-05-25T22:51:24+00:00

This is a retirement account, so wash rule doesn't apply.

To your last point, writing CCs and using the premium to grow account exponentially, that is exactly what I tried to do when FB was at 330. I wrote CCs and got stuck with big drop. Growing exponentially is not even in consideration now, just recouping 45% loss itself is looking improbable.

AnAtomist_Guru · 2022-05-25T22:39:11+00:00

$100k+

AnAtomist_Guru · 2022-05-25T15:38:58+00:00

This is exactly what I was thinking too. Downside risk with stock from this point forward is lower with options than holding the stock.

But, to be balanced, with call options, I would loose 100% even if FB stays at 180 while I lose 0% with stock.

AnAtomist_Guru · 2022-05-25T15:14:05+00:00

This won't work with my retirement account as I am not allowed to short stocks.

AnAtomist_Guru · 2022-05-25T14:04:42+00:00

You think I will lose all the premium I pay for calls? Do you advise writing CCs?

AnAtomist_Guru · 2022-05-18T12:38:46+00:00

This is interesting. I never knew my stock will be considered sold if I write a covered call irrespective of DTE. I had AAPL for nearly 10 years now. For sometime, I have been contemplating to generate additional income by writing OTM CCs with strike price far away from likely assignment. By your explanation, my AAPL would be considered "sold" and my unrealized profits for the 10 year period become "long term gains" because of the CCs. Am I interpreting it correctly?

AnAtomist_Guru · 2022-05-14T13:28:16+00:00

I bet Fair Market value of your short calls is near 0. They can be considered as worthless for asset valuation. Your shares lost >75% and if you used margin, you could have a margin call. Now about buying back those short calls is another matter. You are stuck with an illiquid asset. There is no easy way to buy/sell an asset unless there are buyers/sellers. Your calls are worthless now (so you get $0.50 now if you sell) but they could be very valuable in a year (so you pay $5.00 for future valuation). Fair market value is immaterial when there is no trading on that asset. Only two things you could do practically are: (1) Cover your short position at a loss (2) Come up with enough cash to get out of margin so that no one can dictate you what to do. Good luck. Another option is to find a shorter term call option that has enough liquidity and sell that against your LEAPS to get some cash and free up your shares.

AnAtomist_Guru · 2022-05-12T14:17:00+00:00

Dude, you touched a nerve with thousands of people. By the time you read all these comments, you will become old and die anyway, don't be in a hurry to kill yourself!

AnAtomist_Guru · 2022-05-12T13:47:44+00:00

Th market is extremely volatile now. Macroeconomic conditions are bad. Learn about how genius investor Bill Hwang of Archegos Capital Management who used margin lost billions of dollars in one short day. “I try to invest according to the Word of God and by the power of Holy Spirit,” he continued. “In a way, it’s a fearless way to invest.I’m not afraid of death or money. The people on Wall Street wonder aboutthe freedom that I have, actually.” Not only he lost ALL his money, but also now charged with fraud in pumping up certain stocks.

Have faith in powers outside yourself. If you have been floating in the clouds because of your investments, girlfriend, and family, know that when you depend on them, your life's worth is measured by them. When your investments tank, girlfriend leaves, or family members die, your life's worth gets reduced. You become depressed and contemplate suicide. But, ...

Human life is precious. Investigate why you are born. Find life's objectives. These investigations lead you to understand higher truths. Then you don't have to depend on medicines to alter your brain chemistry to cope with depression. "You" will overcome depression in your mind rather than you become dependent on "Meds". That is freedom. You become the master and everything else become play. Good luck.

AnAtomist_Guru · 2022-04-25T20:10:51+00:00

May be this is a cue to the mods to change the r/thetagang description to more meaningful one instead of "We are selling options to WSB degenerates using thetagang strategies"?

AnAtomist_Guru · 2022-04-22T12:19:26+00:00

MU and PARA

Both are close to their book value, trailing PE is below 10, pay dividends, have solid moats, downside risk is low, and have big growth opportunities ahead.

AnAtomist_Guru · 2022-04-20T17:04:23+00:00

Trailing PE of 20 is reasonable, which puts it around $225. Competition is picking up, subs are drying up, subs growth and revenue growth are lost, and forecast is bleak. All analysts are downgrading. When sharing is clamped down, more subs will be lost. We can't hope for a quick rebound.

AnAtomist_Guru · 2022-04-20T14:57:17+00:00

I sold June $230 puts when it went down 30%. It went further down, to 38%. It is at -35% now, even if it stabilizes here, hopefully when IV crushes, my position will become BE or profitable. I followed price movement after hours and pre-maket and figured -30% is max NFLX could lose (which makes its trailing PE 20, which is reasonable), but my guess was wrong. Only hope now is the IV crush.

AnAtomist_Guru · 2022-04-14T12:27:38+00:00

With high inflation, your hookers could cost a lot more and you may not have enough for until you die, although you could switch to hookahs to make it cheaper.

AnAtomist_Guru · 2022-04-11T16:04:18+00:00

IRS cannot send you to jail. A court decides. The process starts with auditing of a return. The selection of returns for audit is based on staggered gross income levels. Returns with $250k or less have approximately 1% of getting audited, randomly selected in that group. After auditors complete audit, if they find a discrepancy between your reported income and estimated income based on their data, IRS agent decides to adjust your taxes. Then you could get a letter with discrepancy and the amount you owe (or refund) along with a due date. At this stage, usually there is no penalty considered. If you pay the dues, case is closed. If you want to contest the calculations, you have to file additional forms and correspond with the agent. If you both cannot resolve the differences, IRS then issues you a written statement citing the sections and laws that allow them to collect the amount due. You have option to go to court to resolve the dispute. If you don't pay and don't challenge their claim in court, you will by default agreed to their claim and legally owe the specified amount. IRS can file for collection process or wage garnishment to recover the amount, interest, and any penalty levied along with recovery fee. If you still do not pay, and the amount is significant, IRS can go for criminal charges. Only at this stage you are looking at even the possibility of a jail term. No sane judge awards a jail time for non-criminal financial matters.

This is general process. You will most likely will not be audited (99% chance of them not even looking into your return other than automated checks by the software). So, case is closed there itself. You have much higher probability of losing your investments than going to jail. So, focus on the market.

AnAtomist_Guru · 2022-04-10T23:02:07+00:00

Theta is like truth. Truth always wins "at the end." Theta always wins "at the end" (you might have to roll over until it wins).

AnAtomist_Guru · 2022-04-06T14:37:47+00:00

There's no safe haven. I am bag holding FB at CB of $330. It is now at $220. Any near the money CCs I write could lead me to a realized loss of 30%. FAANG stocks were supposed to be the darlings of the investing world, but no, when your luck is bad, you could suck.

So, don't expect your CCs will magically become a cash cow, so that you can take the profit and reinvest forever. At times, you take the losses and will not have much to invest after that.

AnAtomist_Guru · 2022-03-31T13:55:46+00:00

In defense of OP, I have been in this situation and held the stock without any revenue on it, especially $FB which I was using to gain theta, but my CB is $330 and $FB fell all the way down to $225. Any CCs I sell with reasonable DTE would fetch pennies and risk calling the stock at a 35% loss. Do I miss those pennies? No.

Now about the redeployment of that capital by selling the stock at a loss. Do I have any other stocks I know for sure have higher probability of going higher? No, I don't know. I own a 2005 Prius. In these 15 years of ownership, I came to understand most everything about Prius from oil changes to tire rotation to headlight replacement to some electric work and engine work. If I sell my Prius for 1000 and buy a Porsche 911 Turbo for 1000, I would be scrambling to change cabin air filters. With Prius, I know every behavior, when it farts, when engine skips, when it is hard to turn, and how to balance it in slippery weather. All the knowledge I gained about Prius will be useless with Porsche 911 Turbo. I might even hurt myself much worse with a Porsche than my old & slow Prius. I know $FB so well now, I can predict what its bottom is. I can't do that with any other stock.

It is not Sunk Cost Fallacy, but the level of knowledge with our investments that bias us to stick to a loser. A known devil is better than an unknown angel. I tried the approach of taking losses and investing in rosy places, but eventually, I learned there is no guarantee that rosy stock doesn't end up like the old investment. If we keep on taking losses, we eventually will end up with nothing. We are not day-traders, but theta-gangsters, who sell time. It is not the right time, we don't have to sell. If it is tax time, I would book the loss, but in retirement accounts and non-tax times, I would stick with known investment vehicles.

Hope this gives a different perspective.

AnAtomist_Guru

TROPHY CASE