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Blazin

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Yea, strange meme choice as that ended poorly for the tank a moment later.
And it likely will this time as well, govt had it's little orgy of spending. Inflation may run hot for a bit, they sure did spend a lot, but I'd expect us to be at 2% or less by 2024. The dmg is done though we'll adapt to these new prices we aren't going back, but that doesn't make it a good thing, it was a complete mishandling across the board and it hurts people's standard of living and it was completely avoidable.

Technology driven productivity gains will likely reassert themselves over the long haul.
 
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Sanrith Descartes

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GOOGL approaching a point of solid support. I dropping in an order to add at $2705.

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Sanrith Descartes

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So am I modeling this correctly? If i built a straddle ahead of PLTR earnings next week and it expires on Friday with the $13.50 strike I need a 13% move to profit? That seems too high somehow. I assume I hosed up the calculation.


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Blazin

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Blazin Blazin in case you didnt see this previously, can you explain what this means please?
Sure, so probably just easiest to give an example . Hold 100 shares of spy as type Margin . (This doesn’t mean ON margin) you sell the position. This creates a margin credit in your limited margin ira. You could then that day use that credit to say purchase SpY again. But if you attempt to make a transaction that requires cash like a secured put you would have to wait for three days for the initial trade to clear margin and be credited to cash .

so the only way around this is to get them to journal the margin credit to cash so you could sell puts.

On your balance tab on website you can see all these different types of balances.


this is further complicated by “free ride” rules. The nut of it is that three day clearing of trades is archaic nonsense that
 
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Jysin

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Still fairly new in options, but dont options settle overnight? Whereas straight equities are T+2?
 

Blazin

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Still fairly new in options, but dont options settle overnight? Whereas straight equities are T+2?
They are type cash and settle immediately.

One way around the stated issue of flipping from equity to secured puts is to get rid of the limited margin, but as mentioned this creates possible free ride violations
 
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Aldarion

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Very basic question, I will refrain from asking more if this kind of thing is not welcome.

If a stock you had planned to hold long term jumps 25% in a few days after buying it, do you go ahead and take the profit or hold long anyway waiting for more?

I'm sure the answer is it depends on more factors than I've put in the question, just trying to get a handle on how people who actually have experience with this stuff think about it. Thanks.
 

Blazin

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Very basic question, I will refrain from asking more if this kind of thing is not welcome.

If a stock you had planned to hold long term jumps 25% in a few days after buying it, do you go ahead and take the profit or hold long anyway waiting for more?

I'm sure the answer is it depends on more factors than I've put in the question, just trying to get a handle on how people who actually have experience with this stuff think about it. Thanks.
Nothing wrong with that question at all, but it's not easy to answer. For me the answer is yes, if I make gains quickly I tend to sell, because making 10-12% YoY is all you need to become quite wealthy and so if the market gods bless me with double digit gains in a short time frame I tend to take it.

The downside to this is the big winners. Super wealth is made by holding something like Netflix or Amazon for 10+yrs. That is the stuff that turns a 10,000 investment into millions which requires ignoring the noise of short term fluctuations both the good and the bad.

So TLDR would be for trading "sell that shit" for investing patience can be more rewarding.
 
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Moglyzoke Moogleman

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Very basic question, I will refrain from asking more if this kind of thing is not welcome.

If a stock you had planned to hold long term jumps 25% in a few days after buying it, do you go ahead and take the profit or hold long anyway waiting for more?

I'm sure the answer is it depends on more factors than I've put in the question, just trying to get a handle on how people who actually have experience with this stuff think about it. Thanks.
Sanrith would tell you this so I'll jump the gun. Start re-reading this thread from like... March 2020 and onward. There's an awful lot of information but it is an incredible resource. I've only made it like a 1/4 of the way and already learned a ton.

The only advice I feel at my level I can give.
 
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Sanrith Descartes

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Sanrith would tell you this so I'll jump the gun. Start re-reading this thread from like... March 2020 and onward. There's an awful lot of information but it is an incredible resource. I've only made it like a 1/4 of the way and already learned a ton.

The only advice I feel at my level I can give.
Hes Right GIF by MOODMAN
 
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Fogel

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Very basic question, I will refrain from asking more if this kind of thing is not welcome.

If a stock you had planned to hold long term jumps 25% in a few days after buying it, do you go ahead and take the profit or hold long anyway waiting for more?

I'm sure the answer is it depends on more factors than I've put in the question, just trying to get a handle on how people who actually have experience with this stuff think about it. Thanks.

I'll also add, when you buy/sell a stock, it doesn't have to be all or nothing. If you're still convinced this stock can go up, sell half now. If it dips again you can buy back even more shares with the half you sold, but you're also not completely locked out if it continues to go parabolic
 
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