Loser Araysar
Chief Russia Reporter. Stock Pals CEO. Head of AI.
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Could be worse, I left 3K of profit on the table today after I sold my NVDA at 142.62
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Could be worse, I left 3K of profit on the table today after I sold my NVDA at 142.62
Blazin
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Loser Araysar
Chief Russia Reporter. Stock Pals CEO. Head of AI.
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I was up quite a bit and thought it was going to pull back as the price action started to wobble. Didnt look encouraging in Bookmap either.
Was hoping to buy back in at 140-141 but it never happened
Blazin
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I let calls go, will probably end up regretting that. Kept shares. THe calls were getting pretty deep into the money and delta just starts climbing and they loose some of their oomph from here and wasn't wanting to roll them up in strike.
Don't think we are smooth sailing to new highs just yet. It's just entering some resistance. Also on my twitter portfolio still have shares and rolled covered calls out to next friday.
Don't think we are smooth sailing to new highs just yet. It's just entering some resistance. Also on my twitter portfolio still have shares and rolled covered calls out to next friday.
Loser Araysar
Chief Russia Reporter. Stock Pals CEO. Head of AI.
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Yeah today was nice, but I'd expect a couple major NVDA pullbacks before making it to 150 that I can profit on. It's typically pretty stubborn going up.
I also wanted to free up my capital for more options plays since I had over $200K tied up in that position.
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Rangoth
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I am seeing the same thing on most of my current plays as well. Also starting to see flatline of 50/100DMA and hints of a downward cross of those same two.
Not sure what to think at this point. I think there is skepticism with the new administration coming in and all of the posturing about government spending, cuts, interest rates, more jobless claim adjustments, etc. Things could absolutely go either way in the next few months. I only have 2 real plays at the moment, along with a small(ish) uber position. Sitting on the side lines
Side note: some of my best money this year came from BITO dividends. I am not sure when that cash cow will dry up but just owning its brings in almost 10k a month(9000+ shares at the moment). I was selling CC, but I stopped doing that for the most part as I really don't want them called away.
You probably know this but one thing you can do, assuming you are either trying to collect premium or actually want the shares, is turn it into a spread. It would lower the amount of cash you need to reserve and when expiration comes around you could decide to sell the lower side of the spread. If it's ITM you may actually make money on the lower side and only at the last moment need to allocate the cash, if it's not you can keep the premium and try again.
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tugofpeace
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what's next week?
do you think BITO is a dividend trap? would you recommend instead of buying an equivalent amount of bitcoin itself?
Sanrith Descartes
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Rangoth
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great question. I am far from an expert on this topic but generally speaking, in my opinion, it is a great way to get some bitcoin exposure with the amazing side perk of the absolutely insane dividend.
if you want bitcoin, of course go buy bitcoin. I was originally in FBTC but eventually sold 100% and essentially transferred it to bito. In theory bito tracks bitcoins futures and you can read about it more on their page. Generally speaking, bitcoin goes up it goes up, same on the downside.
at the time of my transfer the bito price was about 17.00. So not only do I get the monthly dividend of about 1.00/share, it’s also gone up to 24ish now. If the divided goes to garbage i would probably drop the position but until then it literally is the best in the market. Sometimes I’m baffled at how good it is. Im not shilling for personal gain but it really is nuts.
BITO Dividend History, Dates & Yield - Stock Analysis
Get the latest dividend data for BITO (ProShares Bitcoin ETF), including dividend history, yield, key dates, growth and other metrics.
stockanalysis.com
that link shows a 14.00 annual dividend on a stock that costs 24/25. Its nuts.
Loser Araysar
Chief Russia Reporter. Stock Pals CEO. Head of AI.
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tugofpeace
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I was dividend trapped on ZIM even to this day when they issued a $17 dividend at $80 or so. They eventually cut the dividend taking the share price down to $7, but its coming back a bit now. So I'm weary of high yield dividend stocks.
Mist
REEEEeyore
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Order of operations; if the dividend goes to garbage the shares will drop before you get a chance to do so.
Furry
🌭🍔🇺🇦✌️SLAVA UKRAINI!✌️🇺🇦🍔🌭
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Expense ratio is 1%. TBH I wouldn't touch that fund with a 10 foot poll. Something fucky and proshares etfs have completely imploded to 0 in the past for much more benign holdings.
Rangoth
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To each their own, as I said. I am not saying everyone should go for it but it is real and has paid me well this year. I got in early so if they announce a drop in dividend(more perm than a lower month) I can probably still exit at or above my entry.
as a fund it will not grow at the rate of bitcoin or even S&P, but it’s been a good landing spot for me to get some steady income. Apparently they invest in bitcoin futures. Read up on it as stated above, at your own risk. I’m just saying it has been legit for 2024 for me.
www.proshares.com
as a fund it will not grow at the rate of bitcoin or even S&P, but it’s been a good landing spot for me to get some steady income. Apparently they invest in bitcoin futures. Read up on it as stated above, at your own risk. I’m just saying it has been legit for 2024 for me.
BITO | Bitcoin ETF | ProShares
ProShares Bitcoin ETF (BITO) is the first U.S. bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid and transparent way.
Sanrith Descartes
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A lot of years ago someone turned me on to a small cap stock that owned cargo container ships and leased them. It was a shit stock that paid an insane dividend. It was accounting fuckery. The largest shareholder also owned a couple of other companies who leased the ships and it was just a big circle of money movement. Since he was the largest shareholder he kept paying this insane dividend which went mostly to himself. I think it eventually imploded.
BITO is an older Bitcoin ETF prior to Bitcoin spot ETFs being approved. It uses futures contracts to approximate Bitcoin performance, meaning it has a substantially higher expense ratio than spot ETFs (0.95% vs. 0.25% of FBTC for example). That's maybe beside the point In the face of BTC volatility, but worth a note.
The dividend distributions are from the net income realized by rolling the contracts--that income has to be distributed in the form of dividends--not reinvested--to avoid taxes on the ETF fund itself. That's what accounts for the price disparity between spot ETF price growth and BITO growth--the price performance is just being distributed back in the form of dividends (also why there's such a ridiculous yield--BTC is simply killing it that much):
Below is a 6mo view of price only:
For BITO, if you add the dividends back in--this is again 6mo:
With spot ETFs available and cheaper, I don't really see the value in going in for the additional complexity if you want BTC exposure. But like
Rangoth
said, to each their own.
The dividend distributions are from the net income realized by rolling the contracts--that income has to be distributed in the form of dividends--not reinvested--to avoid taxes on the ETF fund itself. That's what accounts for the price disparity between spot ETF price growth and BITO growth--the price performance is just being distributed back in the form of dividends (also why there's such a ridiculous yield--BTC is simply killing it that much):
Below is a 6mo view of price only:
For BITO, if you add the dividends back in--this is again 6mo:
With spot ETFs available and cheaper, I don't really see the value in going in for the additional complexity if you want BTC exposure. But like
Rangoth
said, to each their own.