Investing General Discussion
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Edaw
Parody
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Sanrith Descartes
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Sanrith Descartes
Veteran of a thousand threadban wars
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Someone in DC hasn't figured out the Earth is large and round and it isnt the same time everywhere as it is in DC.
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It might not seem like it to the people here, but options are incredibly complicated.
It's EZ though! See, there's 2 kinds, calls and puts. But naturally there's 2 sides to each of those, buying and selling. And buying one and selling the other are basically the same of course. Except when they're not.
There's also a time factor to consider which can negate the value of your investment if you screw up. There's also the price, which is good in certain ranges and bad in other ranges, but only before a certain amount of time or after another certain amount of time. Which changes. It's also super cheap to do! But if you screw up sometimes it can wipe out your entire portfolio in one trade because there's a 10-1 factor you need to be aware of. There's also the codes by which these things are listed and traded which look like gibberish, but you need to be aware of or you can get burned.
Stay sane, exile!
It's EZ though! See, there's 2 kinds, calls and puts. But naturally there's 2 sides to each of those, buying and selling. And buying one and selling the other are basically the same of course. Except when they're not.
There's also a time factor to consider which can negate the value of your investment if you screw up. There's also the price, which is good in certain ranges and bad in other ranges, but only before a certain amount of time or after another certain amount of time. Which changes. It's also super cheap to do! But if you screw up sometimes it can wipe out your entire portfolio in one trade because there's a 10-1 factor you need to be aware of. There's also the codes by which these things are listed and traded which look like gibberish, but you need to be aware of or you can get burned.
Stay sane, exile!
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Sanrith Descartes
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99% of what you posted is options strategy which is indeed deep water for many. Mist said he could figure out the trade ticket or the option chain (interface could be either/both?)
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Sanrith Descartes
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ToeMissile
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Mist
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It just never feels like I'm clicking the right buttons to do the thing I intend to do, so I don't.
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ToeMissile
Pronouns: zie/zhem/zer
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So much innuendo possibilities here!
I've definitely become interested in at least learning to do some basic options after all the discussion here. But it's low on my priority list of things to take care of.
Sanrith Descartes
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Depending on the platform its most likely the exact same trade ticket as it is for stocks. You use the Options Chain to strategize your selection and then you buy or sell the specific options contract using the trade ticket.
Everything Options
Options can be a powerful tool to add to your investing/trading toolkit. They can dramatically increase your risk or they can mitigate it and everything in between. This thread is for discussing options plays, options education and questions. I have been trading options for about 20 yrs now...
Sanrith Descartes
Veteran of a thousand threadban wars
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Got you covered fam...
Everything Options
Options can be a powerful tool to add to your investing/trading toolkit. They can dramatically increase your risk or they can mitigate it and everything in between. This thread is for discussing options plays, options education and questions. I have been trading options for about 20 yrs now...
Sanrith Descartes
Veteran of a thousand threadban wars
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ToeMissile
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Blue Origin ramp up? Or waiting for that mega cruise liner to go back on the market?
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Sanrith Descartes
Veteran of a thousand threadban wars
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I have always assumed once the founders leave their companies for good if they divest a lot because they are no longer in control of it.
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Kirun
Buzzfeed Editor
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Probably just this. I was listening to Bezos on Lex Fridman's podcast and I'm pretty sure he said he's going to stop throwing infinite money at Blue Origin.
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The_Black_Log Foler
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Thinking of selling my IXUS shares in my self managed portfolio. They make up 16% of the total. Majority stake is in FXAIX with 7.5% in FSMAX and 15% in qqqm.
As I’ve mentioned before my advisor managed portfolio is heavy on the EM shit so now I’m sitting here thinking why be redundant with an international hedge in my self managed portfolio. Also my managed portfolio is heavy in bonds (this is due to poor past spending habit so that’s on me) which is another hedge. Thoughts?
I know no one here recommended international but I guess putting that aside I want confirmation that I’m being redundant by holding IXUS and should just up my FXAIX position. My total IXUS position is down .19bp while my FXAIX position is up a total 5.56bp.
As I’ve mentioned before my advisor managed portfolio is heavy on the EM shit so now I’m sitting here thinking why be redundant with an international hedge in my self managed portfolio. Also my managed portfolio is heavy in bonds (this is due to poor past spending habit so that’s on me) which is another hedge. Thoughts?
I know no one here recommended international but I guess putting that aside I want confirmation that I’m being redundant by holding IXUS and should just up my FXAIX position. My total IXUS position is down .19bp while my FXAIX position is up a total 5.56bp.
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Short answer: Confirmed! Sell it.
Long answer: Let's talk international markets!
Way back when the dinosaurs roamed, there was a theory that holding international made sense as a hedge against the US dollar and US monetary policy. The past 25 years or so has not borne that thesis out.
IXUS has a lot of exposure to large international corporations with a global customer base. Meaning it has substantial exposure to the US market and US monetary policy, which itself is ALSO made up of large international corporations with a global customer base (Apple vs Samsung, Nvidia vs TSM, Eli Lily vs Novartis, Tesla vs. Toyota, Exxon vs. Shell, P&G vs Unilever, etc etc etc--admittedly, the weights are heavier in S&P, but the concept holds). So what is this hedge really doing?
Let's do the sniff test first. Doesn't seem to be insulated from any macro declines:
However, a hedge still has value if it falls but falls less (or grows more) than the thing it is hedging against, so let's look at every year IXUS outperformed FXAIX over the last decade-ish and see what you 'saved' due to the hedge:
Not very impressive. Note that down year in 2018, where IXUS lost more vs. FXAIX than it saved in sum over a decade. So it isn't even a reliable hedge against short-term adverse conditions. And to get that spotty hedge above, you had to give up something like +250% returns over the last 10 years.
True EM (not EM like... China EM) might do better as a hedge due to their differing industry mix and reach, but understand that the thing you're hedging against in that case isn't really the US dollar, it's global market exposure. And hedging the risks also means hedging the benefits.
For me, the US market is sufficiently diverse, and my belief is that (as above) domestic gains in the long term will outweigh any international short-term 'shock absorption' capabilities.
Side note, I'm not sure if you meant to use bp as in basis points, which are 1/100th of a percentage point.
Long answer: Let's talk international markets!
Way back when the dinosaurs roamed, there was a theory that holding international made sense as a hedge against the US dollar and US monetary policy. The past 25 years or so has not borne that thesis out.
IXUS has a lot of exposure to large international corporations with a global customer base. Meaning it has substantial exposure to the US market and US monetary policy, which itself is ALSO made up of large international corporations with a global customer base (Apple vs Samsung, Nvidia vs TSM, Eli Lily vs Novartis, Tesla vs. Toyota, Exxon vs. Shell, P&G vs Unilever, etc etc etc--admittedly, the weights are heavier in S&P, but the concept holds). So what is this hedge really doing?
Let's do the sniff test first. Doesn't seem to be insulated from any macro declines:
However, a hedge still has value if it falls but falls less (or grows more) than the thing it is hedging against, so let's look at every year IXUS outperformed FXAIX over the last decade-ish and see what you 'saved' due to the hedge:
Not very impressive. Note that down year in 2018, where IXUS lost more vs. FXAIX than it saved in sum over a decade. So it isn't even a reliable hedge against short-term adverse conditions. And to get that spotty hedge above, you had to give up something like +250% returns over the last 10 years.
True EM (not EM like... China EM) might do better as a hedge due to their differing industry mix and reach, but understand that the thing you're hedging against in that case isn't really the US dollar, it's global market exposure. And hedging the risks also means hedging the benefits.
For me, the US market is sufficiently diverse, and my belief is that (as above) domestic gains in the long term will outweigh any international short-term 'shock absorption' capabilities.
Side note, I'm not sure if you meant to use bp as in basis points, which are 1/100th of a percentage point.
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