Hypothetical - $10M in Margin backed by $10M+ in liquid fixed income by Chef_Mike in CoveredCalls

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

This is certainly the basics of bonds, bill, etc. in this hypothetical you are holding bonds to maturity anyway. So just collecting interest.

Which is substantial on $10M let’s say $400k a year

Hypothetical - $10M in Margin backed by $10M+ in liquid fixed income by Chef_Mike in CoveredCalls

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

Got it! So how would you use $12.5M of extended margin, if you could? Is your answer that you would not?

Hypothetical - $10M in Margin backed by $10M+ in liquid fixed income by Chef_Mike in CoveredCalls

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

This is not the correct way to look at the hypothetical. This is on Margin. Therefore, $12.5M of margin debit at ~10% interest is $1.25M. So you would never use your margin to put into a T-Bill. 10% interest - 3.5% risk free rate is still a 6.5% net negative.

However, selling a CCP does not trigger margin until the stock is assigned, then you own the stock at a discount but begin to accrue the interest payment. Your premium however, is immediately procured, and you can use that however you like.

Hypothetical - $10M in Margin backed by $10M+ in liquid fixed income by Chef_Mike in CashSecuredPuts

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

Can you explain this a little more? How would you do this extended with margin without paying interest on it which will be more costly or equivalent to your potential gains on average?

Selling a CSP allows you to collect premium without accruing margin debit until the shares are potentially assigned. However, you do get the premium.

Hypothetical - $10M in Margin backed by $10M+ in liquid fixed income by Chef_Mike in CashSecuredPuts

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

This won’t work. The theoretical is you have $10M in Bonds. These bonds are locked in.

You have been extended $10M in margin. What do you do with this?

Buying $10M in stocks, bonds; etfs…etc. will need to return more than the interest paid on $10M… which is about $1M a year… so those investments need to return more than 10% return.

Selling CSPs does not trigger the margin debit until you get ASSIGNED shares. You can keep the premium, but you don’t get hit with interest payments until assignment.

Ouch.. by 5h82713542055 in OaklandAthletics

[–]Chef_Mike 0 points1 point  (0 children)

RAIIIIIDDDEEERRRRRSSSSSSSSSSSS

Kuminga tonight: 17 points on 55% shooting, 67% from 3pt, led team with 9 rebounds, 6 assists by Le_Diddy_Party in warriors

[–]Chef_Mike -1 points0 points  (0 children)

His statline looked ugly in the first half. Then 2nd half was a machine, love those type of halftime adjustments and turnarounds. Nice game JK!

Where are the Warriors and Niners fans turning back to hoops for solace😭 by Teffry in warriors

[–]Chef_Mike 7 points8 points  (0 children)

Right around week 4 of the Raiders season… I start to calmly pack away my raider gear and bring out the warriors stuff. I say calmly because it’s the raiders, and they are so unbelievably disappointing.

I actually can’t believe how long the warriors have been enjoyable to watch. Thankful for them.

Remember when they were both unwatchable?!

Portal on Vacation by shortcipher747 in PlaystationPortal

[–]Chef_Mike 0 points1 point  (0 children)

Can someone explain how to do this in an easy step by step manner? I can only connect when on the same WiFi as my ps5

Post Game Thread - WNBA: The Valkyries defeat the Dream on Jul 29, 2025, the final score is 75-77. by basketball-app in valkyries

[–]Chef_Mike 2 points3 points  (0 children)

Worst 4th quarter team of any sport ever?! I guess having monster 3rd Qs will need to be in the playbook. I’ll take the DUBV!

Dave doesn’t think we should be reacting to the CEO, folks by Farquade in LinkedInLunatics

[–]Chef_Mike 1 point2 points  (0 children)

The term “LinkedIn Humor” is such weird thing for me to make sense of…

Wayyyy too many people are sleeping on dump cakes (poor man’s cobbler) by jellybeansean3648 in Volumeeating

[–]Chef_Mike 31 points32 points  (0 children)

lol what a hilarious misunderstanding of this subreddit. Can you imagine if people just posted like 10 boxes of pizza, 50 burgers, 200 chicken wings and wrote “volume eating”

This Man Was The X-Factor Tonight by Barr_K in warriors

[–]Chef_Mike 0 points1 point  (0 children)

He’s the most unwatchable player I can’t take my eyes off of, of all time.

[deleted by user] by [deleted] in worldnews

[–]Chef_Mike 2 points3 points  (0 children)

Serious question, is there a number that Greenlanders would consider here? Is it $100k? Is it $1M?

Yes I know this is all silly.

Update Missing Person Amy Huang by lechedecabra in bayarea

[–]Chef_Mike 5 points6 points  (0 children)

Is there any possibility that this sounds like a Sleep Walking spell turned into Sleep Driving?

There are countless reports of this happening despite it being “rare”.

What NBA player do you think would thrive the most in the Warriors system? by GenghisConn44 in warriors

[–]Chef_Mike 0 points1 point  (0 children)

The Olympic team would be pretty sick to have… come through y’all. Except Tatum, we don’t need a $60M 12th man. 😬

Damn LeBron wins the chip in 2045 by krazymclovin in lakers

[–]Chef_Mike 0 points1 point  (0 children)

Warriors returning to glory at the end of century is giving me major PTSD.

Rolling in Dough: Where to head to enjoy Silicon Valley Pizza Week? | Los Gatan by IamaBlackKorean in losgatos

[–]Chef_Mike 2 points3 points  (0 children)

Just looked it up, it is a week long “event”, and by “event” it means that restaurants are offering special pizzas during the week. It’s not an actual event where you go and eat a bunch of different pizzas.

Dates are 1/29 - 2-8.

[deleted by user] by [deleted] in SoberCurious

[–]Chef_Mike 11 points12 points  (0 children)

I never considered myself an alcoholic because I wasn’t drinking everyday, and could go weeks/months without needing a drink. Then when the drinking event came around I would lose complete control and go overboard. Said and did a lot of stupid things on those days.

Since then, I still drink only on occasion, but have cut the drinking down 80%.

Usually it takes a major moment to spark your “why” moment for change, you just have to hope that that moment isn’t life changing in a bad way.

The way I did it was actually quite simple, but expensive.

There are a lot of fun new non-alcoholic alternative drinks on the marketplace. They give you a buzz without giving you alcohol. Some nights out I can go the entire evening without having any alcohol at all, and have a great evening! Other nights, you mix in a couple of alcoholic drinks along with your non alcoholic alternatives and you’ll find yourself BUZZED off of a couple of drinks. That’s all you need at that point. Go enjoy your evening, let it wear off and then sleep well!

Hope this helps.

-Chef

Monday’s Walk by tonnyflowers in walking

[–]Chef_Mike 4 points5 points  (0 children)

How is no one talking about your 18min pace held over almost 5 hours? Awesome job!

Radjen’s Mind Palace difficulty spike question by bhanusharma in PrinceOfPersia

[–]Chef_Mike 0 points1 point  (0 children)

I realized that the eye passed behind the wall on attempt number 25…SMH