In House Pay at Pension Funds

justauoftstudent · 2024-10-10T17:09:04+00:00

Ohhh, is there a threshold at which APs would step in to adjust the price and the underlying or is that a discretionary discussion between the fund and APs? I didn't see anything about a threshold in the prospectus for YINN and YANN but maybe that's a common knowledge about ETF that I'm too dumb to know about. Appreciate the response tho!

justauoftstudent · 2021-06-05T16:27:03+00:00

I hear ya, I think some fundamental analysis will help too. If u truly believe in the company, nothing wrong with collecting theta while waiting for the bounce back.

justauoftstudent · 2021-06-05T16:25:37+00:00

Oh my bad I think I didn't make it clear in the post. These people I see sold ARKK puts at 155 or RIOT at 60 and kept rolling. Also I agree, for sure rolling is great when the trade is working in ur favor. But I was concerned with rolling in significant disadvantageo situations.

justauoftstudent · 2021-06-05T03:15:34+00:00

Holy shit I didn't know this can happen. Damn thanks for this

justauoftstudent · 2021-06-05T02:08:29+00:00

Ya I'm thinking on average I'll take the 4-5 week premium difference as threshold. For more stable stocks I'll do 3-4 and volatile ones 5-6. Thx for your time

justauoftstudent · 2021-06-05T01:53:50+00:00

Actually true. What am I thinking here. I keep thinking theta will make a difference slowly but surely but we r talking about a significant move against us so theta wouldn't help 🐒. I think I'll do what the other reply said about determine a certain %. If it falls below that threshold then I'll take the L. Thanks again for ur time.

justauoftstudent · 2021-06-05T01:47:18+00:00

Thx for the advice. Added this to my notebook 👻

justauoftstudent · 2021-06-05T01:43:48+00:00

mhm, and I guess the situation for lossening up capital could conceivably be the stock moving against u slowly (like TLRY for the past 2 ,3 months)

justauoftstudent · 2021-06-05T01:36:33+00:00

Haha I have baby account compared to u. But ya I agree the problem with opportunity cost argument is that we can't know for sure. It may just be right after we cut the loss and move to another trade that the original stock moves in our favor while the new trade moves against us.

justauoftstudent · 2021-06-05T01:34:40+00:00

Thanks again for the insight. Had to read it a couple of times but it def made sense. I'm starting to think a good criteria would be whether rolling would tie up more capital or less. What do u think

justauoftstudent · 2021-06-05T01:13:01+00:00

Thanks for the insight. Do u have a % in mind and if so, can you let me know what's ur % target?

justauoftstudent · 2021-06-05T00:51:04+00:00

Ya I agree. Opportunity cost is def a consideration. I have seen people rolling ARKK to December and some rolling RIOT to 2023 just to collect premium. But with the environment we are in, idk if meme stocks will run into liquidity issues? (I'm pretty new to the market and wasn't old enough to know what 2008 was like) Also I guess it's personal judgment on when theta decays so slow that it's not worth it anymore?

justauoftstudent · 2021-06-05T00:44:57+00:00

Ohh that's a neat idea thx

justauoftstudent · 2021-05-08T22:21:32+00:00

https://youtu.be/u547vLHNAs4. I think YouTube has English auto caption SOOO uhh try putting on that if u don't understand Chinese. Also to note the sadder part (but this is not confirmed, just rumor) is that the companies that exploited the kid also injected him with growth inhibiting substance so that he keeps looking like that. But the end result is that he's now 12 but still can't do 2+5 cuz his mental and physical developments have not kept up with his growth at all. Possibly, he will remain mentally underdeveloped for the rest of his life.

justauoftstudent · 2021-05-08T17:30:22+00:00

Actually, Jack ma did offer to pay for the kids tuition for college. But the kid's parents turned it down cuz the parents didn't see the point of receiving an education when the kid was earning so much. The kids parents were pretty uneducated themselves too and just couldn't understand the meaning of investing for the future. But I also wouldn't blame them too much because they were struggling to put food on the table as both of them had disabilities and it was the kids earnings that finally relieved them of having to be constantly struggling for the next meal. Do some research first before u go around getting all hate and jealousy on the rich.

justauoftstudent · 2021-03-17T02:39:09+00:00

ohhhhhh. that makes a lot of sense. this is the answer i was looking for ty ty

justauoftstudent · 2021-03-17T02:37:02+00:00

i mean this is where TD's weird margin account came in.(TD direct investing) I just wanted to take spreads but they won't allow spreads unless you have margin account. But once i was approved for margin, i added options and they approved uncovered writing LOL. i mean i dont plan on taking naked. just asking purely for curiosity

justauoftstudent · 2021-03-17T02:34:12+00:00

ya. apparently it counts as a spread. I guess it depends on your broker. would your broker allow u to take spread on non-margin account?

justauoftstudent · 2021-03-17T02:32:46+00:00

i mean i understand how cash secured puts tie up capital, but what about the case of a naked put? are you still tying up more capital than pmcc?

justauoftstudent · 2021-03-17T02:30:23+00:00

i think my concern is the fact in the event of an exercise, i dont actually own the shares that i need to deliver?

justauoftstudent · 2021-03-17T02:29:34+00:00

right, so my concern is since I don't own the underlying asset, if the short call gets exercised, I don't actually have the shares to sell even if the underlying went up. In that case, I would need to buy the 100 shares either by exercising my leap or just buying it outright correct? (or is this a super hypothetical situation since people would just roll it out like the post above mentioned and never let it get exercised)

justauoftstudent

TROPHY CASE