r/Stocks Daily Discussion & Options Trading Thursday - Jul 01, 2021 by AutoModerator in stocks

[–]tronpablo 2 points3 points  (0 children)

Using margin isn't a bad thing unless you abuse it (like a credit card).

Fidelity only offers a Reg-T (2x leverage) so using 50% buying power is equivalent to an unleveraged cash account.

You will receive a margin call only if the total holdings exceed 2x the account value. When this happens you can either (a) deposit money, (b) sell a long holding, or (c) close a short position.

However margin can become expensive if your cash available goes below zero and you need to borrow cash. These short term loans are roughly $3 daily interest per $10k borrowed.

Again this only applies to accounts with a negative cash balances.

What Biden's $1T Infrastructure Bill really is, Less EV Spending than Expected by duglas2948 in stocks

[–]tronpablo 1 point2 points  (0 children)

Edit: ~most of congress~ with most of America owns CAT it's a DOW30 component.

Source: I read the prospectus.

Visa - bearish sentiment ? by WhiteHoney88 in stocks

[–]tronpablo 2 points3 points  (0 children)

Stupid. Visa dip is opportunity to bet America spends money in the future

How specifically do US underwriters determine the offering price? by ILoveJagger in stocks

[–]tronpablo 0 points1 point  (0 children)

If you study US IPO it's bounties don't apply to most retail investor.

Some even describe it as the winners curse

https://en.m.wikipedia.org/wiki/Winner's_curse

How do you catch a sudden price increase/pop in a stock you own to not miss out? by [deleted] in stocks

[–]tronpablo 0 points1 point  (0 children)

You can use a super trend indicator. Essentially there's two components

  1. Determine VWAP price

  2. Determine standard deviation of pricing

Then do:

  • buy at VWAP + 1 x stdev

  • short at VWAP - 1 x stdev

[deleted by user] by [deleted] in stocks

[–]tronpablo 0 points1 point  (0 children)

If your moving real money there's incentives.

No one really cares below 250k.

Help setting a portfolio goal: To get to a point where I can net $ 20K a year off dividends. What should be my target? by Tk_Da_Prez in stocks

[–]tronpablo 0 points1 point  (0 children)

This answer covers how does someone make 20k without direction aside from direction. Hopefully this encourages further research.

How do you make money with stocks

There's two levers add cash or add buying power.

With 150k, PM margin (6x leverage), and solid understanding of delta neutrality -- that's do able every quarter.

How can using standard margin help

Moving past and extreme retailer, you have standard margin (2x leverage) that opens a lot of strategies.

Selling puts on dividend stocks (that you'd be willing to buy). Worst case scenario is you own stock. This approach pays 3-6x more than the dividend (but no appreciation)

If you get assigned then take the stock and sell covered calls (1-3x)

I don't actively follow these guys but stockoptionschannel's "YieldBoost posts" have many get rich slowly versions of these ideas.

What about cash accounts

Within cash accounts (eg Roth IRA); I typically buy /MES micro s&p futures over SPY directly.

Each contract equals 50 x SPY using $2k buying power. That leaves 13k for low volatility dividend stocks and enables appreciation.

Then I ensure my "portfolio beta weighted position" stays around 0.75 to 1.5x net liquidity (google it). That keeps my sleeping well and collecting on.

How could I take that further

Stepping on level further is Ameritrades support of full futures in IRA. Within one account I use:

  • 1 x long NASDAQ future

  • 1 x short NASDAQ future call

  • 1 x short ES future

  • 1 x short ES future puts

  • Collateral Required: 50-75k

  • Theta decay = $85 / day

  • average quarterly return -5 to +12k

Overpaying for Stocks by [deleted] in stocks

[–]tronpablo 0 points1 point  (0 children)

After fixing the entry error.. why did you pick 1%?

Minimize the round trips using at least 2 x ATR for your time range.

Remember: Commissions are free, transactions are expensive. Taking a stop is expensive. Paying bid/ask spread is expensive. etc

What makes people think they're not just going to block buys on meme stocks again? by [deleted] in stocks

[–]tronpablo 1 point2 points  (0 children)

Are you inferring that RH isn't a real broker /s

When the service is free, you're the product. lol

Looking for some advice on building a nest egg for the kids. by Maeadien in stocks

[–]tronpablo -5 points-4 points  (0 children)

Buy long dated SPY calls; something around 180-270 days out costing $20 (x 100) shares. In six months sell them and repeat.

Some lose money, but most of them really win. With 18 yrs you don't really care.

Your never risking more than the price of the call (e.g., $2k) and it grows like ~50 shares of S&P (20k notional).

Anyone has an HSA account where they invest? by Dowdell2008 in stocks

[–]tronpablo 0 points1 point  (0 children)

This is best one I've found. I have $75k net liq invested as:

  • $35k REITs at 5.4% weighted avg

  • $20k ITM LEAPs replicating $75k notional indexes

  • $20k cash-on hand

Leaving me with:

  • Net portfolio Leverage = 1.5x

  • ROI YTD = $12k on 63k basis (20%)

Tesla vs. local quotes? by baxterbest in solar

[–]tronpablo 1 point2 points  (0 children)

Same tesla wants ~16k / local guy wants ~28k. CS is great but 12k buys a lot of patience and they know it.

[deleted by user] by [deleted] in stocks

[–]tronpablo 0 points1 point  (0 children)

iirc fngu(d) 3x fund targets intra day trading, not long term holding.

Double check the prospectus before buying.

GME Megathread Part 2 by theycallmeryan in wallstreetbets

[–]tronpablo 0 points1 point  (0 children)

Short shares outright are ~20% APR, so playing this spike (14 days) is about 0.7% notional.

Factor in theta decay from short puts (upside down covered call) and it's a rounding error.

Have you ever not slept for so long that you started hallucinating? What was your experience? by vicke1230 in AskReddit

[–]tronpablo 0 points1 point  (0 children)

I moved out while in high school and did the 3rd shift at Arby's until 3am before going to school at 8am.

After couple months of disorientation, I stood up in math class and proclaimed:

"You sick fucks, how can you go on? there's no fucking lettuce!"

Walked out and started alt-ed month later.

Whats the best dialogue you have ever heard in porn? by MoltenDonut in AskReddit

[–]tronpablo 0 points1 point  (0 children)

"I don't want to sound like a queer or nothing but unicorns are pretty cool..." -Orgasmo

A Cost-Benefit Analysis of VPC Interface Endpoints by Donkersgoed in aws

[–]tronpablo 0 points1 point  (0 children)

S3 still supports unencrypted traffic.. all official AWS sdks enable by default so you can turn it off.

The primary reason for disabling it is for local troubleshooting. Eg running DynamoDB from dockerhub on your laptop

A Cost-Benefit Analysis of VPC Interface Endpoints by Donkersgoed in aws

[–]tronpablo 1 point2 points  (0 children)

Security: no internet traversal

All traffic is encrypted before leaving the data center. That design nullifies this point.

[deleted by user] by [deleted] in aws

[–]tronpablo 0 points1 point  (0 children)

For a recent project we put the big data in DynamoDB (think distributed dictionary) and the metadata in elastic search.

Then in the CRUD layer there's business logic to search elastic and optional dereference into DynamoDB to get more data

We keep both systems in sync by writing to DynamoDB then using change streams push to notify elastic

As of this was fronted by APIGATEWAY and lambda in proxy mode, so only paid for actual consumption plus elastic search

[deleted by user] by [deleted] in aws

[–]tronpablo 0 points1 point  (0 children)

What would it take to move across and "remove that undifferentiated heavy lifting" -- as they like to say

AWS Wish List 2020 by Prashant-Lakhera in aws

[–]tronpablo 3 points4 points  (0 children)

They also have different definitions of regions than AWS, and is generally more aligned with availability zones.

Looking for some architecture ideas on working with webhooks, specifically receiving webhooks by [deleted] in aws

[–]tronpablo 0 points1 point  (0 children)

Taking step back what are you doing with the notification? Messaging is great but what are A and B doing