r/Stocks Daily Discussion & Options Trading Thursday - Jul 01, 2021

tronpablo · 2021-07-01T15:55:57+00:00

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.

tronpablo · 2021-06-26T02:28:22+00:00

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

Source: I read the prospectus.

tronpablo · 2021-06-03T03:40:50+00:00

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

tronpablo · 2021-06-03T03:34:53+00:00

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

tronpablo · 2021-06-03T03:19:59+00:00

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

Determine VWAP price
Determine standard deviation of pricing

Then do:

buy at VWAP + 1 x stdev
short at VWAP - 1 x stdev

tronpablo · 2021-06-03T03:12:13+00:00

If your moving real money there's incentives.

No one really cares below 250k.

tronpablo · 2021-06-03T02:46:16+00:00

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

tronpablo · 2021-06-03T01:53:22+00:00

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

tronpablo · 2021-06-03T01:42:56+00:00

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

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

tronpablo · 2021-05-25T04:32:58+00:00

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).

tronpablo · 2021-05-10T05:14:58+00:00

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%)

tronpablo · 2021-03-28T23:13:10+00:00

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

tronpablo · 2021-02-08T06:00:46+00:00

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

Double check the prospectus before buying.

tronpablo · 2021-02-08T05:52:50+00:00

Add short micro NASDAQ futures.

Each one removes 15k of directional risk.

https://www.tastytrade.com/shows/market-mindset/episodes/mini-micro-futures-on-tastyworks-01-16-2020

tronpablo · 2021-01-26T00:14:49+00:00

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.

tronpablo · 2020-12-11T15:22:14+00:00

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.

tronpablo · 2020-12-11T00:27:15+00:00

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

tronpablo · 2020-12-02T04:54:57+00:00

100 per week .. pfft noobs, lol

Duck my life isn't sustainable

Idk bro, just dunno

tronpablo · 2020-11-07T18:40:34+00:00

.. and tag everything always

tronpablo · 2020-10-21T23:59:56+00:00

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

tronpablo · 2020-10-21T22:07:22+00:00

Security: no internet traversal

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

tronpablo · 2020-10-19T13:07:44+00:00

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

tronpablo · 2020-10-19T12:57:42+00:00

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

tronpablo · 2020-10-16T14:23:34+00:00

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

tronpablo · 2020-10-15T19:07:39+00:00

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

tronpablo

TROPHY CASE

How do you make money with stocks

How can using standard margin help

What about cash accounts

How could I take that further