Search found 203 matches

by rasta
Fri May 15, 2020 5:29 pm
Forum: Investing - Theory, News & General
Topic: Selling options
Replies: 4
Views: 373

Re: Selling options

SPY or QQQ
by rasta
Fri Apr 24, 2020 6:43 pm
Forum: Personal Investments
Topic: Does anyone sell puts in order to force re-balancing and collect premiums?
Replies: 34
Views: 1732

Re: Does anyone sell puts in order to force re-balancing and collect premiums?

I called today. I can sell an October SPY 245 (think of that as SP500 At 2450) put at $15.65. I would write two contracts, meaning I would collect $3,130 in premium. The worst case scenario would be that I have to buy 200 shares of SPY at $245 for $49k and I would have collected $3,130 to do that. ...
by rasta
Wed Apr 22, 2020 3:49 pm
Forum: Personal Investments
Topic: Active trading strategy using SPY
Replies: 21
Views: 751

Re: Active trading strategy using SPY

all you had to do for the last 15 years was to buy and hold QQQ if you wanted to beat the s&p 500.

why not just put 20% in QQQ?
by rasta
Tue Apr 21, 2020 5:20 pm
Forum: Personal Investments
Topic: Accidentally bought put at higher price
Replies: 24
Views: 1939

Re: Accidentally bought put at higher price

MotoTrojan wrote:
Tue Apr 21, 2020 5:08 pm
Be careful. Do not sell an option under any circumstances (unlimited loss potential).
really?

how is my loss unlimited if i sell a covered call or a cash secured put?
by rasta
Sun Apr 12, 2020 3:52 am
Forum: Personal Investments
Topic: Confused: Why Can't I Set Prime MM to Distribute to Settlement Fund (Fed MM)
Replies: 8
Views: 715

Re: Confused: Why Can't I Set Prime MM to Distribute to Settlement Fund (Fed MM)

So I have a fair bit of cash in my allocation (part of by bonds/FI AA) and decided to move some to the Prime Money Market fund in an IRA. Then, as I generally do in taxable and tax-advantaged accounts, I went to select distributions to go to my settlement fund. But I hit a snag. The box for selecti...
by rasta
Fri Apr 10, 2020 4:46 pm
Forum: Personal Investments
Topic: What Individual stocks are you buying?
Replies: 123
Views: 9842

Re: What Individual stocks are you buying?

Caduceus wrote:
Fri Apr 10, 2020 2:40 pm
Have any of the people here who buy single stocks actually read a single page of the company's financial statements?
absolutely. it's called fundamental investing
by rasta
Mon Apr 06, 2020 5:38 pm
Forum: Personal Investments
Topic: Vanguard money market options
Replies: 5
Views: 966

Re: Vanguard money market options

all your questions are addressed in the prospectus, a document you should read.
by rasta
Tue Mar 31, 2020 3:10 am
Forum: Investing - Theory, News & General
Topic: Stock buybacks question
Replies: 3
Views: 212

Re: Stock buybacks question

bought back shares are carried on balance sheet as treasury stock
by rasta
Sun Mar 29, 2020 12:17 pm
Forum: Personal Investments
Topic: Lump sum or DCA $30,000 in a volatile market?
Replies: 43
Views: 2635

Re: Lump sum or DCA $30,000 in a volatile market?

DCA is a hedging strategy to enter a position to reduce downside risk over the averaging period. it's a simple concept, nothing wrong or irrational about using this strategy. if you lump sum, then you are essentially picking a bottom. so what's your strategy? do you want to hedge or go all in for fe...
by rasta
Fri Mar 27, 2020 2:53 pm
Forum: Investing - Theory, News & General
Topic: Calculating CD Yield
Replies: 2
Views: 167

Re: Calculating CD Yield

this is how i would calculate

you are paying 3005.42.
your return will be 3003.31.

you will lose 2.11 over 6 days or .35166667 per day

-.3516666678*365/3000 = -.042786111
by rasta
Thu Mar 26, 2020 7:40 pm
Forum: Personal Investments
Topic: SP500 Index fund will outperform total stock market?
Replies: 51
Views: 5884

Re: SP500 Index fund will outperform total stock market?

likely QQQ will beat both VOO and VTI.
by rasta
Tue Mar 24, 2020 3:21 pm
Forum: Personal Investments
Topic: [Differences in strategies: Ramsey vs Bogle]
Replies: 60
Views: 3921

Re: Ramsey or Bogle?

neither.

i'll take benjamin graham
by rasta
Mon Mar 23, 2020 7:31 pm
Forum: Personal Investments
Topic: What's going on with electric utility stocks?
Replies: 10
Views: 1117

Re: What's going on with electric utility stocks?

utility stocks for the most part were also in a bubble, selling at
elevated p/e and price to book ratios. most are also loaded with too much debt.
by rasta
Sun Mar 22, 2020 4:21 pm
Forum: Investing - Theory, News & General
Topic: It's Not Different This Time
Replies: 358
Views: 34878

Re: It's Not Different This Time

Crushtheturtle wrote:
Sun Mar 22, 2020 4:05 pm

Long term, stocks go up.
there will be individual stocks which will go up, but for broad markets, could be a long, long time, i.e. japan.
by rasta
Fri Mar 20, 2020 4:46 pm
Forum: Investing - Theory, News & General
Topic: I am up 7%!
Replies: 11
Views: 2421

Re: I am up 7%!

so you have monetized your gains?

what will your return be if s&p5oo falls to 1700?
by rasta
Thu Mar 19, 2020 12:01 am
Forum: Personal Investments
Topic: Can savings in Vanguard - VMFXX loose principal amount ?
Replies: 10
Views: 955

Re: Can savings in Vanguard - VMFXX loose principal amount ?

i don't think VMMXX will break the buck, but:

"The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors."
by rasta
Wed Mar 18, 2020 11:36 pm
Forum: Personal Investments
Topic: Can savings in Vanguard - VMFXX loose principal amount ?
Replies: 10
Views: 955

Re: Can savings in Vanguard - VMFXX loose principal amount ?

VUSXX is the "safest" vanguard MM fund (but you need 50K min) VMFXX is slightly safer than VMMXX rates on all these mm funds are going to eventually approach zero, but should maintain $1 share price. safer alternatives would be FDIC insured CD's or buying short-term t-bills at auction. CD's will hav...
by rasta
Wed Mar 18, 2020 10:45 pm
Forum: Personal Investments
Topic: Sitting on 1.2M. What to do...?
Replies: 24
Views: 3802

Re: Sitting on 1.2M. What to do...?

Keep Sitting
by rasta
Wed Mar 18, 2020 7:41 pm
Forum: Investing - Theory, News & General
Topic: End of corporate stock buybacks??
Replies: 75
Views: 4603

Re: End of corporate stock buybacks??

a stock without dividends is a Ponzi asset because owners never receive money from the companies they own, they need to keep finding a greater fool to buy, but eventually the last fool buys. follow the money, buffet sure likes to buy dividend paying companies for the cash flow they provide.
by rasta
Wed Mar 18, 2020 5:28 pm
Forum: Investing - Theory, News & General
Topic: What Would Jack Bogle Do?
Replies: 45
Views: 3312

Re: What Would Jack Bogle Do?

maybe he would already have sold equities like he did prior to dot-com crash
by rasta
Wed Mar 18, 2020 5:23 pm
Forum: Personal Investments
Topic: Time to Move Vanguard MM Funds to Local Bank? (B of A)
Replies: 12
Views: 1638

Re: Time to Move Vanguard MM Funds to Local Bank? (B of A)

why not just do a cd ladder with brokered cd's
or:
buy VUSXX
or
buy short term t-bills at auction?
by rasta
Wed Mar 18, 2020 10:25 am
Forum: Investing - Theory, News & General
Topic: Buybacks vs dividends
Replies: 8
Views: 342

Re: Buybacks vs dividends

stock buybacks were illegal until 1982, time to revisit making them illegal once again.
by rasta
Wed Mar 18, 2020 10:21 am
Forum: Investing - Theory, News & General
Topic: End of corporate stock buybacks??
Replies: 75
Views: 4603

Re: End of corporate stock buybacks??

stock buybacks were illegal until 1982, time to revisit making them illegal again.
by rasta
Tue Mar 17, 2020 5:13 pm
Forum: Investing - Theory, News & General
Topic: Should we have listened to the yield curve?
Replies: 12
Views: 756

Re: Should we have listened to the yield curve?

we are now seeing the problems with a debt based economy in which interest rates were manipulated, resulting in the
improper pricing of risk. this resulted in exaggerated asset pricing, where prices were no longer supported by fundamentals.
virus or no virus, the bubble was going to pop.
by rasta
Tue Mar 17, 2020 3:26 pm
Forum: Personal Investments
Topic: T Bills [higher than par?]
Replies: 5
Views: 447

Re: T Bills

today's 1 month rate = .12 so secondary market is pricing below par.
by rasta
Tue Mar 17, 2020 2:13 pm
Forum: Investing - Theory, News & General
Topic: Money Market
Replies: 3
Views: 458

Re: Money Market

FDIC account
by rasta
Mon Mar 16, 2020 9:48 am
Forum: Personal Investments
Topic: What would you buy on this dip?
Replies: 13
Views: 1408

Re: What would you buy on this dip?

CASH is King

don't try to catch a falling knife.
by rasta
Sun Mar 15, 2020 2:11 pm
Forum: Personal Investments
Topic: selling puts instead of limit order to increase equity AA
Replies: 10
Views: 570

Re: selling puts instead of limit order to increase equity AA

i have more expertise in selling puts on individual stocks, but the premise is still the same for etf's. selling puts is similar to selling insurance. when you sell a put option on a stock, you're selling someone the right, but not the obligation, to make you buy 100 shares of a company at a certain...
by rasta
Sun Mar 15, 2020 11:33 am
Forum: Investing - Theory, News & General
Topic: Why not shut down the stock market temporariliy?
Replies: 28
Views: 1620

Re: Why not shut down the stock market temporariliy?

Yes it’s false. We hit both upward and downward 5% circuit breakers in the course of one week’s time last week! -TheDDC really? when did the broad market close during normal trading hours because it was UP more than 5% last week? according to investopedia: "circuit breakers that relate to broad mar...
by rasta
Sun Mar 15, 2020 10:20 am
Forum: Investing - Theory, News & General
Topic: Why not shut down the stock market temporariliy?
Replies: 28
Views: 1620

Re: Why not shut down the stock market temporariliy?

circuit breakers should be eliminated.

we don't have them on the way up, we shouldn't have them on the way down.
by rasta
Fri Mar 13, 2020 1:50 pm
Forum: Personal Investments
Topic: Talk me out of trying to buy the dip(s)
Replies: 13
Views: 1637

Re: Talk me out of trying to buy the dip(s)

I've decided to hold off and wait a bit longer for the dust to settle. Partly due to minimal replies to this post, but mostly because I have very little confidence in the Trump administration and its handling of the current issue at hand. I know its wrong to discuss politics on this form but politi...
by rasta
Fri Mar 13, 2020 11:33 am
Forum: Personal Investments
Topic: Dollar Cost Averaging or Lump Sum in Current Market
Replies: 37
Views: 3375

Re: Dollar Cost Averaging or Lump Sum in Current Market

First of all you should never just blindly throw money into the market, as we are now seeing FUNDAMENTALS do matter. I don't know how many times I have to say this, but: DCA is a hedging strategy to enter a position to reduce downside risk over the averaging period. it's a simple concept, nothing wr...
by rasta
Wed Mar 11, 2020 11:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Take On This Global Bear Market
Replies: 59
Views: 6175

Re: Vanguard's Take On This Global Bear Market

As bad as everything looks right now, I find it difficult to envision a scenario where coronavirus is a major global problem 2-3 years down the road. It's possible the virus is a pin that pricks this massive debt bubble. We'll find out. the market hasn't been grounded in fundamentals since the fed ...
by rasta
Wed Mar 11, 2020 8:59 am
Forum: Investing - Theory, News & General
Topic: Cost of Indexing
Replies: 15
Views: 1289

Re: Cost of Indexing

if you have a well diversified portfolio, then NO i would not sell them just to buy an index fund, you are likely to own the same stocks in the index fund anyway. what "value" do you see in buying the index fund? how has your current portfolio performed with respect to the s&p 500? what makes you th...
by rasta
Tue Mar 10, 2020 9:00 pm
Forum: Personal Investments
Topic: Is upward market movement usually as fast as downward?
Replies: 13
Views: 1160

Re: Is upward market movement usually as fast as downward?

in the short term, which can last years:

markets trade on fear and greed.

fear is a stronger emotion than greed, so markets will fall faster.

you can easily see this on a chart.
by rasta
Wed Mar 04, 2020 10:44 am
Forum: Investing - Theory, News & General
Topic: What would you do? [lump sum, DCA, or ?]
Replies: 45
Views: 3370

Re: What would you do? [lump sum, DCA, or ?]

DCA is a hedging strategy to enter a position to reduce downside risk over the averaging period.

If you lump sum, you are essentially picking a bottom.

so what is your strategy? do you want to hedge or do you want to go all in for fear of missing out on what could be the bottom?
by rasta
Tue Mar 03, 2020 1:05 pm
Forum: Investing - Theory, News & General
Topic: What if Fed cut doesn't work?
Replies: 137
Views: 6531

Re: What if Fed cut doesn't work?

if "the underlying fundamentals of the economy are strong" they why do they need a 50 basis point cut?

interest rates are being manipulated resulting in the improper pricing of risk and that is never a good thing in the long run.
by rasta
Mon Mar 02, 2020 2:35 pm
Forum: Investing - Theory, News & General
Topic: Time to buy! What am I missing?
Replies: 29
Views: 2209

Re: Time to buy! What am I missing?

Fundamentals
by rasta
Tue Feb 25, 2020 1:37 pm
Forum: Investing - Theory, News & General
Topic: Why do companies give dividends?
Replies: 56
Views: 4480

Re: Why do companies give dividends?

From a 10,000 foot view perspective( or a pure fundamental basic business perspective) if a company isn't ever going to issue dividends to investors and the investors return is solely based on appreciation, isn't that just similar to a ponzi or pyramid scheme or a game of financial musical chairs? ...
by rasta
Sat Feb 22, 2020 2:52 pm
Forum: Personal Investments
Topic: GE Wabco Merger
Replies: 54
Views: 9203

Re: GE Wabco Merger

how much GE did you own prior to the merger?

you also need to account for the fractional shares
by rasta
Fri Feb 07, 2020 1:01 pm
Forum: Personal Consumer Issues
Topic: What is the best concert you ever witnessed?
Replies: 385
Views: 27794

Re: What is the best concert you ever witnessed?

there is nothing like a grateful dead concert
by rasta
Tue Jan 28, 2020 2:10 pm
Forum: Personal Investments
Topic: Are index investors investing in QQQ by accident?
Replies: 28
Views: 2944

Re: Are index investors investing in QQQ by accident?

indexing creates an upward bias that isn't justified on fundamentals, it basically turns the market into a long-term pyramid scheme.
by rasta
Mon Jan 27, 2020 11:30 pm
Forum: Personal Investments
Topic: Is BP considered a foreign investment?
Replies: 14
Views: 846

Re: Is BP considered a foreign investment?

yes, BP is a foreign investment. the company's HQ is in England.
by rasta
Tue Jan 14, 2020 3:11 pm
Forum: Investing - Theory, News & General
Topic: Is Timing the Market Possible?
Replies: 26
Views: 2226

Re: Is Timing the Market Possible?

in the classic sense of being able to precisely pick tops and bottoms, i would agree that market timing is not possible, how could it be since one is not able to predict the future. on the other hand, can individual stock pickers who roll their own portfolios beat the market, absolutely. should ever...
by rasta
Mon Jan 13, 2020 12:36 pm
Forum: Investing - Theory, News & General
Topic: What causes a bond bear market? Can it lead to sequence of returns risk?
Replies: 19
Views: 2489

Re: What causes a bond bear market?

kiddoc: There is no "bond bear market" (a 20% decline) for mainstream bonds. The worst annual return for Vanguard Total Bond Market Index Fund was -2.66% in 1944. TBM gained +16.00% in 1945. Vanguard was founded in 1975 I believe, so how could they have bond fund in 1944? What is the source for you...