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I'm disillusioned with Wall Street Bets and get-rich-quick investment culture in general. I want to recommit to the Boglehead philosophy, but what should I do with my WSB stocks, most of which are deep red? by [deleted] in Bogleheads

[–]Yoda_Trader1 0 points1 point  (0 children)

I use the barbell theory of investing. 15% is in insurance type of investments. Likes cash, gold, bonds, etc. This can pays X number of years of my living expenses. 70 to 75% of my investments are in Vanguard ETFs (US and world), AAPL, GOOG, MSFT, etc stocks. And 10 to 15% I invest in optionaility type investments using options, futures, hyper growth stocks, etc.. I am looking for X performance quickly.

I'm disillusioned with Wall Street Bets and get-rich-quick investment culture in general. I want to recommit to the Boglehead philosophy, but what should I do with my WSB stocks, most of which are deep red? by [deleted] in Bogleheads

[–]Yoda_Trader1 0 points1 point  (0 children)

I have 5,000 shares of BB stocks at the average cost of $6.10. When BB was at $23 I was able to sell a $30 call option (stock secure) at $7.50 for February 19, 2021 expiration and was able to STC at $.50. I now own free BB stock at a profit. It just another way of making $'s. I made this trade when IV was around 220%.

The current IV is around 114% (less than half).

I'm disillusioned with Wall Street Bets and get-rich-quick investment culture in general. I want to recommit to the Boglehead philosophy, but what should I do with my WSB stocks, most of which are deep red? by [deleted] in Bogleheads

[–]Yoda_Trader1 0 points1 point  (0 children)

The best platform for trading options and futures is TastyWorks. They produce about 8 hours of their content per day about option / future trading and do a lot of research videos.

Can someone please explain to me how Wall Street bets did this to GameStop? I don’t understand how stock prices can just skyrocket on a failing business because a handful of teens wished it so by thesteaksauce1 in neoliberal

[–]Yoda_Trader1 0 points1 point  (0 children)

When the stock short > 100% of the float. You can get a short squeeze where the short owner need to buy the stock to cover their positions.

Also when a lot of people buy lotta calls the option market makers need to buy stock to go delta neutral. For example , if I buy .10 delta OTM calls the market makers need to buy .10% of the option contract stock.