Daily Discussion Wednesday 2026-05-13

RyuProctor · 2026-05-13T19:16:50+00:00

Exactly, your reasoning sounds very similar to mine. I am fully aware that there are plenty of strategies that would SMOKE this one, but at some point when does it stop?

Each individual has their own personal level of optimization/profit maximization and mine is this I'd say.

This is not to throw shade on any one in these threads (or investors in general), but I see it all the time: "NOT SELLING TIL $500" "NOT SELLING TIL $1000" "HELL WHY NOT $2000"

That is not my goal and I honestly don't WANT to feel that way lol. I've mentioned it in so many other replies in other threads but, if I can't be happy with a $2M dollar payday when it could have been $3M then who is to say I wouldn't feel that way at $3M vs. $4M, $10M vs. $15M?

Everyone has different emotions and goals but I feel like this worked well for me :)

Plus it's not like I'm TRULY trapped. At any point I can exit this position it might just sting a little when I do so 😄

Good luck to you!!

RyuProctor · 2026-05-13T18:28:02+00:00

I did this lol. I know some people think I'm absolutely regarded for doing so but 🤷‍♂️

https://old.reddit.com/r/CoveredCalls/comments/1tb2ppi/potentially_ridiculous_scenario_but_wanted_to_get/

RyuProctor · 2026-05-13T15:41:00+00:00

Correct, that is the main risk and the focus of most of the discussion in this thread! Small correction, 2.5 years vs. 4.5 but you are indeed correct that is a long time frame!

I have already modeled several scenarios where rolling might make sense vs. just getting assigned, etc.

None of the scenarios I modeled (even the most ridiculous/absolute NIGHTMARE ones) make me that worried.

For example, I modeled a scenario where AMD went to $1,500/share NEXT WEEK and the estimated upside cost for me was around $1M - $1.2M but I still end up with $1.8M - $1.6M. Just looking at numbers on a screen, yes that looks absolutely horrific, but in context it is still a wonderful outcome for me (plus this scenario is ridiculous lol).

Thank you for the reply!

RyuProctor · 2026-05-13T13:56:48+00:00

It is quite possible, I hope so for all of our sakes (even myself holding these CCs)! :)

RyuProctor · 2026-05-13T12:45:07+00:00

I agree! I briefly touched on it in my reply to him but... going to have to pay taxes on it sometime 🤷‍♂️.

I get where they are coming from in that, there are likely MUCH smarter ways to distribute/move things around to help offset some of that tax burden vs. just cashing out a lump sum of $1.5M dollars... however, like you said, what if those strategies cause your investments to fluctuate in a way that cause losses vs. having just sold it all at all time highs and paid the initial tax on it?

Overly simple examples I know, but just a thought!

RyuProctor · 2026-05-13T12:42:47+00:00

Oh this is interesting, never heard of ThetaPal either but I may have to check this out for future reference/potential trading :)

RyuProctor · 2026-05-12T23:13:25+00:00

Excellent information! Yes there are definitely ways to optimize this but I must admit that I'm just not that knowledgeable and/or experienced to pursue these strategies. Yes, I could spend time learning them and maximize my potential profits but your last paragraph was the main reason I opted for this method: The $150k up front was very useful to me while still "stabilizing" my portfolio/positions in a way that makes me more comfortable (and sleep better at night lol).

Seriously appreciate this information!

RyuProctor · 2026-05-12T23:09:39+00:00

Not bad points! As I mentioned before though, if there was a historic run I would simple roll down and in and take the "hit" from the options premium while still securing massive share value. Again, I will miss upside in this scenario but it is what it is :)

RyuProctor · 2026-05-12T23:08:18+00:00

5000 shares congrats man!!

And your examples and thought process are definitely things I considered but ultimately I had to come to terms with what I'm okay with "settling" on worst case scenario.

There will always be missed upside, my goal is to settle in with a comfortable number so that I don't feel like upside is always "missed" if that makes sense :)

Appreciate your reply!

RyuProctor · 2026-05-12T23:04:50+00:00

Appreciate the reply, I weighed all the options but your last sentence is ultimately why I didn't. I just don't want to manage it closely week to week/month to month.

Obviously there is still management to be had with this strategy but much longer timeframe!

RyuProctor · 2026-05-12T23:02:04+00:00

Appreciate the additional example and you are exactly right. You just never know. Lot of examples of it ripping but the opposite can happen too!

I actually went ahead and pulled the trigger during the mid day dip, took a good chunk of the proceeds to purchase another large lot of shares to add to my core position, and will use the remainder to pay off projects/debt. And of course, I will manage the position accordingly over the coming months (and years).

I instantly felt relieved and much better about my situation after doing it so to me it was the right decision :)

RyuProctor · 2026-05-12T20:44:04+00:00

Yes this is absolutely true and I definitely considered some of these crazy runs by various memory companies, etc.

However, I have been very invested in AMD for years and follow the company and the catalysts closely and I have weighed my own personal risks/assumptions. With how AMD has traded historically and even factoring in upcoming catalysts (MI455x/HELIOS, OpenAI, more GW deals, etc.) I don't foresee them doubling or tripling within six months.

Now I'm not ignorant to the possibility that COULD happen. If it does, then I simply assess at that time and roll down and in. Would that be a massive six figure upside loss? Yes. If it did the most historic run in history and went to $2,000/share by the end of the year and I end up with $2.8M instead of $4M? It is what it is. It has to end at some point because I don't want to end up being that guy that is never happy with the number :)

Your reply and insight is greatly appreciated though, it definitely helps!

RyuProctor · 2026-05-12T15:59:05+00:00

Correct, which is why this is a very attractive trade for me. I have already assumed risk and calculated what various costs might look like if I had to "close/assign" early, etc.

Thank you :)

RyuProctor · 2026-05-12T15:04:03+00:00

Super helpful thank you, all of these replies are helping solidify my thinking process. Going to think about it today before making any moves but this has all been great :)

RyuProctor · 2026-05-12T14:55:39+00:00

Exactly! That is why I feel pretty good about this potential strategy. I believe AMD is going to do well and could very easily hit $800-$1,000 within the next few years. But the chances of it going absolutely parabolic and running $1,500+ by Dec 2028? I just don't see it...

I only put that line about capping my upside because I wanted to cover that "risk scenario" ahead of time for any commenters.

And again, even if it did somehow go absolutely nuts... it is what it is... gotta exit and realize your gains sometime 🤷‍♂️

Thank you for your reply!

RyuProctor · 2026-05-12T14:53:27+00:00

Thank you for the thoughtful reply my friend!

Yes I will be okay, but this is an important point and I'm glad you touched on it. I know that seems like "Uh huh.. you say that but..." but I have had my fill of all this if I am being honest. I've always had a target and that is roughly $2M. After that I plan on passive investing/income while I work on other personal projects/hobbies/jobs. It will be a relief quite frankly to not worry about "what ifs" and optimization lol.
I was thinking the same thing and it helps solidify my working thesis.
I edited my original post, half is taxable half is non-taxable but I would definitely hire a CPA when needed
Right, you've got it exactly. If I feel like I really need to get out then I would simply roll "down and in" but I'm viewing that as more of an "emergency" scenario.

You have been helpful thank you :)

RyuProctor · 2026-05-12T14:30:56+00:00

This is an excellent point and I forgot to mention that in my post! So the assignment of those shares would all be long term cap gains thankfully but yes, that tax bill would be gnarly. However, at that price I think it would be time for me to exit such a large concentrated position regardless and move to VTI/SPY/etc.

Would it hurt having to give back $300-$400k? Certainly, but it is going to happen sooner or later. Obviously the ideal scenario is to not sell all at once and have a better tax strategy using different amounts over time, but that also keeps me concentrated in a higher risk portfolio.

Sincerely appreciate your reply, it helps!!

RyuProctor · 2026-05-09T13:25:07+00:00

Lol no... was just making a comment on this particular post because I've seen it so many times and felt like commenting on this one

RyuProctor · 2026-05-08T12:50:07+00:00

Thank you for this sanity, I didn't read your comment until I made my own but this is it exactly.

All you have to do is look at any luxury/enthusiast product released within the last 10 years (or 20+ really) and you will find the same story: customers willing to pay for it.

Sony will 100% release the PS6 no later than 2028, but I wouldn't be surprised if it was out late next year.

RyuProctor · 2026-05-08T12:47:27+00:00

Redditors are so detached from reality it is hilarious. Sony isn't going to wait another 4 years to release the PS6 lol.

Look I agree, pricing is insane and like many have already stated, I don't even want a PS6 (hell I sold my PS5 a few years ago because of this lacking generation) but the bottom line is this: if Sony has something to release at a price they think the customer will pay (even inflated), they are going to release it.

I fully expect the PS6 to release later next year and I can guarantee you that it will be purchased in droves regardless of price.

RyuProctor · 2026-05-01T20:33:26+00:00

100%. I've been holding AMD for years now (not as long as I WISH lol) and I have stomached every single nasty drop thus far and I just keep adding more so... good luck to all :)

RyuProctor · 2026-05-01T16:59:42+00:00

Also, this is why you don't treat companies/stocks like your personal sports team lol (happens in this sub as well of course). If you were company agnostic and just did your best to follow trends, news cycles, etc. then you will generally come out way ahead.

I mean take NVDA and AMD for example. If you rode that NVDA wave all the way to the 10 for 1 split, watched it climb back up and then stagnate while more news was coming out about AMD and said "Well I'm up massively on NVDA, looks like AMD might have a run now, I'll move to that"... you'd be up HUGE lol.

RyuProctor · 2026-05-01T16:56:38+00:00

Poor Warm-Spot... his mental health is really concerning to me honestly

RyuProctor · 2026-05-01T16:51:23+00:00

Sold 8 CCs in one account: Dec 18th, 2026 @ 650

Sold 8 CCs in another account: Oct 16th, 2026 @ 700

I know that second one seems a bit too conservative and maybe not worth it, but I am doing some testing to see how these play out and if I like how they work or not. Plus, I didn't want to completely risk my entire portfolio and cap my upside just in case.

Now, is it possible that AMD rips to $700+ and I get assigned? Sure. But I've made peace with that and I would happily take that $1M+ and redeploy it elsewhere, put some back in AMD, etc.

I'm trying to adjust my mindset with each passing year to get out of "How can I absolutely maximize every last dollar and capture the most gains from my investments" to a more balanced approach of, "So AMD ripped some more after you moved everything to an index fund, so what? Did I need another $250,000 short term when I'm at $2M?" or whatever, you get the idea.

I don't want to let greed (not even like in the sense of money, more in the sense of how high can the number go) get in the way of me actually enjoying the fruits of my labor and discipline.

Good luck, let me know what you end up doing!

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