stock market

[dareo]

You sold for a 7%gain, then taxes?

I focus on very short term trades, hours to days, and yes its not tax efficient. I sell out of things too early most of the time but i am always in the market looking for the next deal. I just shoot off limit orders slightly below market and if it fills i immediately send profitable resell orders.

Today's Tesla put sale for example, $25 premium paid to me and about an hour later the stock went up and therefore the put price dropped. I closed it for $18 pocketing $7x100 minus fees. I coulda gotten it back for $12 if traded perfectly, but perfection is hard. Tesla started dropping near the close so i was able to sell the same put at a $25 premium again.

Tomorrow i'm expecting Tesla to rebound a bit, the upward move on the shares combined with one less day before expiration (This Friday!) will shred the put value.

If i am wrong i will be forced to buy 100 shares tesla at an effective $975 price come friday. I doubt that will happen, and if it does, it will bounce back fast. If i am wrong again by Monday i can sell a covered call option for like $1050 strike that week and get a nice premium further reducing my cost. Eventually i will be out of the trade well ahead. Unless Elon tweets out that he's quitting tesla or something lol.

 

[dareo]

Tesla put closed today $9.00. People were paying $30 for the same put this morning about 45 minutes ago. Imagine paying $3000 for a put option and seeing it evaporate down to $800-900 in less than an hour. Fortunately i was on the gaining side of that trade but you can destroy your portfolio fast being on the wrong side of short term options.

 

[Dave Hess]

I bought VDE last year and doing good.

I bought some inverse ETFs and doing very nicely lately.

 

[Pablo]

I bought VDE last year and doing good.

I bought some inverse ETFs and doing very nicely lately.

Oh really. The inverse shorts hurting for two days now. These are NOT buy and hold.

I sold my short ETF's Tues PM. Went nearly long, including 3X TQQQ Wed open. May sell long and go SQQQ and SRTY soon...............this is a small percentage of my portfolio, but the proceeds fund projects and such.

My breezeway cover with design, plans (Site and actual), structural engineer, permits, construction, etc will end up being about $25K, for example.

 

[Zee09]

I am taking a respite from the markets and for once living anxiety free. However missing the $$$$

 

[Pablo]

I am taking a respite from the markets and for once living anxiety free. However missing the $$$$

THAT is what my gut told me on a couple of those days.

Sometimes I override that feeling...............to my detriment and to my positive.............but I do tell myself, feelings have nothing to do with it.

I can never predict the crowd. I can only judge when - going over a cliff or too much exuberance.

 

[Zee09]

THAT is what my gut told me on a couple of those days.

Sometimes I override that feeling...............to my detriment and to my positive.............but I do tell myself, feelings have nothing to do with it.

I can never predict the crowd. I can only judge when - going over a cliff or too much exuberance.

Yup you said it.
I needed a break as I flip incessantly.

 

[Wolf359]

I am taking a respite from the markets and for once living anxiety free. However missing the $$$$

Well as we speak, it's doing a pretty good rally. That's the problem with sitting out, it's easy to miss those days when it jumps up. But the way this market is going those gains could easily be gone again in a few days.

 

[Dave Hess]

Oh really. The inverse shorts hurting for two days now. These are NOT buy and hold.

I sold my short ETF's Tues PM. Went nearly long, including 3X TQQQ Wed open. May sell long and go SQQQ and SRTY soon...............this is a small percentage of my portfolio, but the proceeds fund projects and such.

My breezeway cover with design, plans (Site and actual), structural engineer, permits, construction, etc will end up being about $25K, for example.

Yes, I hold for a short time and sell.

Sending you a PM.

 

[zzyzzx]

Well as we speak, it's doing a pretty good rally. That's the problem with sitting out, it's easy to miss those days when it jumps up. But the way this market is going those gains could easily be gone again in a few days.

This is preventing me from consolidating an old 401K. I don't want it to be out of the market for the amount of time it takes to do a transfer.

 

[Wolf359]

This is preventing me from consolidating an old 401K. I don't want it to be out of the market for the amount of time it takes to do a transfer.

Well being out is a double edged sword, could cut both ways, you could be out during a downturn. It's been down all year, today's rally only cuts the losses to about negative 7.5% in the S&P 500 for the year.