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Sanrith Descartes

Sanrith Descartes

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ShakyJake said:
Vanguard recently opened up a high yield money account. I immediately moved the bulk of my Wells Fargo savings account into it. This is another thing that's killing banks as they're not capable of offering this yet.
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Banks are actually fucking themselves on this right now. When I was shopping for a HY savings account both Citi and JPM were offering them. But in the fine print I found out they werent offering them to customers in areas where they had a solid footprint. It was only available in areas they were trying to build up deposit base in. Needless to say, NY was not on the "available" list. Instead we got the 0.0000721% interest on savings. Fuck em. Amex gave me over 4%
 
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Furry

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Sanrith Descartes said:
Banks are actually fucking themselves on this right now.
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Lets be fair, the fed is probably lending a loving hand. Banks are probably just banking on a certain segment of the population being asleep at the wheel.
 
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Falstaff

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yeah you will have to see a massive outflow of deposits at the big boys for anything to change. And right now their deposit levels are only increasing.
 
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Mist

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Sanrith Descartes said:
Banks are actually fucking themselves on this right now. When I was shopping for a HY savings account both Citi and JPM were offering them. But in the fine print I found out they werent offering them to customers in areas where they had a solid footprint. It was only available in areas they were trying to build up deposit base in. Needless to say, NY was not on the "available" list. Instead we got the 0.0000721% interest on savings. Fuck em. Amex gave me over 4%
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SoFi consistently beats them all, and they've setup a thing where your money is actually spread out over 10 banks if you have a high balance, offering 2 mil in FDIC insurance.

 
Mist

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Speaking of SoFi, this would be a good stock to write covered calls on, or not? Too volatile?

1683830201682.png
 
Fogel

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Mist said:
Speaking of SoFi, this would be a good stock to write covered calls on, or not? Too volatile?

View attachment 473109
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The 06/16/23 is only .13 premium, so about a 2% gain which isn't a whole lot for this stock considering the volatility and your potential downside. But if you're committed to holding it long term, then its better than just sitting on it I guess.
 
Jysin

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Well, I made a boomer trade yesterday. Dumped about $200k into 1 month treasury bills. They are now paying ~5.7% (annualized).

Nice place to park some funds while we navigate the debt ceiling turbulence.
*Edit* Also to note, if you have a Fidelity account, you can buy treasuries directly through them and avoid navigating the atrocious mess of the treasurydirect.gov website.

I am also eyeing some VIX calls again, which are admittedly expensive, but can pay well in case this game of mexican standoff between executive / congress goes down to the wire. Historically speaking, the last time this happened saw a sizeable pullback in markets after a downgrade of the US credit rating. This play is purely a hedge / lotto.
 
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Sanrith Descartes

Sanrith Descartes

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Jysin said:
Well, I made a boomer trade yesterday. Dumped about $200k into 1 month treasury bills. They are now paying ~5.7% (annualized).

Nice place to park some funds while we navigate the debt ceiling turbulence.
*Edit* Also to note, if you have a Fidelity account, you can buy treasuries directly through them and avoid navigating the atrocious mess of the treasurydirect.gov website.

I am also eyeing some VIX calls again, which are admittedly expensive, but can pay well in case this game of mexican standoff between executive / congress goes down to the wire. Historically speaking, the last time this happened saw a sizeable pullback in markets after a downgrade of the US credit rating. This play is purely a hedge / lotto.
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Stupid question and 99.9% unlikely. What happens to the value of your T-bills if the gubmint defaults?
 
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Sanrith Descartes

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Big Phoenix said:
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I attribute a lot of this that goes on to blatant financial ignorance. And greed. There are ways to play earnings. Use an option strangle and hedge movements in each direction.

People (and banks apparently) not hedging downside risk and instead just YOLOing shit get everything they deserve.

Episode 2 GIF by South Park
 
Fogel

Fogel

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Going to write some Ford 11$ puts, it's currently at 11.66 and hasn't dipped below 11 since Jan 2021
 
Haus

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Sanrith Descartes said:
But... Would you actually want to own it if you get assigned?
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Funny story about Ford... I own a tiny spot of it. Purchased on a lark because I had a spare $100 sitting in an e-trade account back in March of 2009. Bought it because that was when the US automakers were suckling the government teat and Ford was the one who didn't take a loan.. It's shot up nicely (bought at $2.19 a share). But it's been on a plateau and slow drift for a long time now. They started paying dividends in 2021, and each of those dividends I had it auto-buy back in. Not a single dividend purchase is in the green right now. They just bask in the big green glow of the initial purchase.
 
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