Investing General Discussion

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Mist

Mist

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Blazin said:
did he?
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finance.yahoo.com

With his latest $3.6 billion Tesla stock sale, Musk once again sells loyalist investors short for the sake of Twitter

Elon Musk’s stake in Tesla keeps shrinking, and so is his overall wealth.
finance.yahoo.com finance.yahoo.com

1671754778119.png
 
Sanrith Descartes

Sanrith Descartes

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Wrote the $28.5 strike covered calls on the INTC shares I just bought. Jan expiry. 24 cent premium. This is pretty much the definition of a "buy/write". Usually you might do the write immediately but I waited a day.

Bought at $25.50
Strike at $28.50
Time to expiry 30 days
Premium at $0.24

So scenario #1 - I get assigned and lose my shares. $2 profit from the share appreciation plus 0.24 premium. I wont get a dividend capture so $2.24 profit in 30 days. 8.8% or 105% annualized.
Scenario two - I dont get assigned and I pocket the 24 cents at roughly 0.94% profit or 11% annualized. If the stock circles back lower then I will most likely be able to close out my calls early for a couple of pennies and start again. If i make it into Feb with these shares I will capture the 37 cent dividend.

According to a 2-year backtest I have a 16.9% chance of being assigned.

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Aldarion

Aldarion

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quite the reversal on BOIL this morning; -8% in premarket now up to +1% and climbing

baby its cold outside
 
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Tmac

Tmac

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Gutterflesh said:
I make memes using MS Paint and I can’t code, so…

All jokes aside I consulted for them on the product management side in the early days.
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Cool! I did the same w RocketMortgage before starting my own business.
 
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Mist

Mist

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The big question for me is whether I should frontload my 401k contributions next year. I have plenty of cash to max out my ROTH and HSA immediately and still put 50%+ of my pay into my 401k for the first few months of the year.
 
Sanrith Descartes

Sanrith Descartes

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Mist said:
The big question for me is whether I should frontload my 401k contributions next year. I have plenty of cash to max out my ROTH and HSA immediately and still put 50%+ of my pay into my 401k for the first few months of the year.
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50% chance it will 100% be the right thing to do.
 
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Furry

Furry

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Why max 401k? Does your business not match? You give up free matching money if you do that at my job, as matching stops once you max.

Roth I’ll max day one like always.
 
Sanrith Descartes

Sanrith Descartes

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Furry said:
Why max 401k? Does your business not match? You give up free matching money if you do that at my job, as matching stops once you max.

Roth I’ll max day one like always.
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Maxing 401k is always the answer. It doesn't matter that you surpass the company match, you tax shelter that 20k (or more if you are old like me).
 
Mist

Mist

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Furry said:
Why max 401k? Does your business not match? You give up free matching money if you do that at my job, as matching stops once you max.

Roth I’ll max day one like always.
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My current employer matches 35% of contributions up to 10% of your salary, not the bullshit 50% of the first 4% or 6% of your pay like most other companies I know do.

So, for anyone making over 70k a year, maxing nets you an extra 7.x K a year in pay, or like 8k next year.

Makes up for fairly anemic bonuses.

Also what Sanrith Descartes Sanrith Descartes said.
 
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Furry

Furry

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Sanrith Descartes said:
Maxing 401k is always the answer. It doesn't matter that you surpass the company match, you tax shelter that 20k (or more if you are old like me).
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I always max it, but over the course of the year. If you max it in three months, you are tossing 9 months of matching funds in the trash, which is next level tarded.
 
Mist

Mist

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Furry said:
I always max it, but over the course of the year. If you max it in three months, you are tossing 9 months of matching funds in the trash, which is next level tarded.
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They're supposed to true-up after the end of the year if they under-contributed.
 
Sanrith Descartes

Sanrith Descartes

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Furry said:
I always max it, but over the course of the year. If you max it in three months, you are tossing 9 months of matching funds in the trash, which is next level tarded.
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I am guessing the idea is to take advantage of the market weakness we now have and not chance a recovery later in the year.
 
C

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Mist said:
My current employer matches 35% of contributions up to 10% of your salary, not the bullshit 50% of the first 4% or 6% of your pay like most other companies I know do.
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One nice thing about being self-employed is I can put away 100% up to the 401k max and then match myself 25% off the top after that up to $66k. Obviously I need the raw income to do that, but if it's a good year I get to stuff a lot away tax-free.
 
Sanrith Descartes

Sanrith Descartes

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Captain Suave said:
One nice thing about being self-employed is I can put away 100% up to the 401k max and then match myself 25% off the top after that up to $66k. Obviously I need the raw income to do that, but if it's a good year I get to stuff a lot away tax-free.
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Using a SEP?
 
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