Investing General Discussion
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Blazin
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I know I've been quiet lately, having a massive year and just figured I'd chime in and say this week is my breaking point on greed. I am not calling a top, but I'm taking profits this week. I'm not planning for some massive pullback, the market may consolidate sideways, but my strategy is adjusting from the largely holding while fully invested, of the last few months. I will still leave some skin in the game (maybe $200-300K in SPY) but will be out QQQ. I'm up $105/share on my avg cost basis for QQQ hard to believe that it's only been 4-5 months.
Will take it day by day and play it as I see it, but the euphoria over tech is enough for me to want off the ride in the short term. This is not a technical trade on my part but more of a weighing my goals and existing profits. From a technical stand point highs beget more highs. Strength brings more strength, and the trend has remained extremely strong, but I'm quite pleased with where I'm at given that I was told by a local genius we would never see this level again in my lifetime... a few months ago.
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Sanrith Descartes
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You cant fool us. You have been quiet while enjoying your small summer home out in the Hamptons.
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Sanrith Descartes
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Blazin
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Blazin I know you trade each day so it is different than most of the rest of us. Just curious are you divesting to cash in general or just trimming off profits from core holdings? Just curious if you have anything you are keeping as a core and if so what is it?
To really properly answer some context is probably warranted.
There is really three separate camps with me. I'm always trading options as a means of income, the change I'm making is to investments. After this week I will be at my lowest level of investment exposure since the end of February. After this week I'll only be holding SPY, SBUX, KO, JPM, T and PFE. SBUX I sold some calls against for this Friday so may be dumping that as well. With the proceeds from sales in the investment camp I'll be selling cash secured puts on the market at levels that interest me to set up to re enter the market when I think it's more advantageous to do so.
There is a third camp that I rarely touch which is 401k which is always invested in an index fund and I very rarely make any changes with. (maybe 1-2 moves a year at most) I don't even really look at it.
Because I already have what I need to never work again some of these type of decisions about exposure are going to be different than for someone who might still be working towards financial independence.
I use about $750k in cash for my income generation via options (I make about $8-10k/mo.)
My investment portfolio is in low 7 figures and I do move that money in and out of the market as you've seen this year. That is really my nest egg, and my goal is not to beat the market over a long period it's to produce the best return I can with the lowest beta possible. Very much about risk management for me.
Then 401k is a ballast of sorts or maybe an insurance policy on me making a major f up. That account is just sub $300k
More info than you were asking for but I think context is quite crucial to weighing a financial move. A reader having this basic layout of my situation can help with a better understanding of why me selling or buying at a particular time might not apply in the way they think it might without the info.
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Sanrith Descartes
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Got it. I revisit by core non-index holdings once a month on my strategy tab of excel and ask myself is this still a HODL stock. The AAPL, MSFT, JPM etc. Assuming its still a yes, I then see if it is overweight my 5% max cap and if I need to trim down. My index funds are HODL.
Thats about 80% of my total portfolio currently. I am sure tech is overheated but I will just ride down a correction. The rest of my portfolio is a cash position, some SPACs I gamble on, and a few trades that will either get sold at some point or earn their way into long holds (CVS, DAL).
Sanrith Descartes
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TJT
Mr. Poopybutthole
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Sanrith Descartes
Please tell me if I am a retard with poor reading comprehension. I understand that holder of record get the split here but there are articles from CNN finance and Barrons both saying the exact opposite. If I am indeed a retard I'll take my ~$1000 bucks now.
Gravel
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Except we're not Japan. You talk about the Boomers, but there is a Millennial generation just as large that is now in the consumption phase. Japan didn't have that.
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Loser Araysar
Chief Russia Reporter. Stock Pals CEO. Head of AI.
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Please tell me if I am a retard with poor reading comprehension. I understand that holder of record get the split here but there are articles from CNN finance and Barrons both saying the exact opposite. If I am indeed a retard I'll take my ~$1000 bucks now.
Heres how TDA explained it to me.
How will the AAPL and TSLA stock splits affect my account?
Apple Inc. (AAPL) recently announced a 4-for-1 stock split and Tesla Inc. (TSLA) announced a 5-for-1 split. Both splits take effect on Aug. 31 (for AAPL shareholders of record on Aug. 24, and for TSLA shareholders of record on Aug 21). The stock splits happen automatically in your account and you are not required to do anything. TD Ameritrade does not charge a fee for this type of a stock split.
If you hold shares of AAPL before the market open on Aug. 31 you will own four shares for every one you held, and the stock price will be reduced to one-fourth of its value at the start of trading on Aug. 31. For example, if you hold 100 shares of AAPL trading at $400 per share, after the split you will own 400 shares valued at $100 per share. Likewise, if you own 1 options call controlling 100 shares with a strike price of $400, after the split you would own 4 contracts and control 400 shares at a $100 strike price.
If you hold shares of TSLA before the market opens on Aug. 31 you will own five shares for every one you held, and the stock price will be reduced to one-fifth of its value at the start of trading on Aug. 31. For example, if you hold 100 shares of TSLA trading at $1,500 per share, after the split you will own 500 shares valued at $300 per share. Likewise, if you own 1 options call controlling 100 shares with a strike price of $1,500, after the split you would own 5 contracts and control 500 shares at a $300 strike price.
If you sell AAPL or TSLA shares after the record dates (Aug. 24 for AAPL and Aug. 21 TSLA) but before Aug. 31, you will sell them at the pre-split price. You will not be entitled to the split shares.
For example, if on the last business day of trading, Aug. 28, you sell 300 AAPL shares for a presplit market price of $400 per share you will receive $120,000. You will not receive any split shares.
If you buy AAPL or TSLA shares after the record dates but before Aug. 31, you will purchase shares at the presplit price. Following the split, you will receive the additional shares resulting from the stock split.
For example, if on Aug. 26 you buy 100 AAPL shares at $400 per share (and hold them through the open on Aug. 31), you will pay $40,000. You will receive 300 additional shares after the stock split, and the price will be reduced to the post-split price.
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TJT
Mr. Poopybutthole
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I was reading WSB discord last night for lulz and the plan for a lot of them seems to revolve around selling between record date and before split date. The idea is they are selling you 1 at the pre-split price, getting the difference in split shares and you get stuck holding the bag with your one.
I thought to myself. That sounds retarded it can't be true.
Sanrith Descartes
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Splits dont happen that often and I think there is some misinformation around not out of malice but from not knowing. Dividends are simple. There is the record date, call it Jan 1st and the ex-div date usually set one business day before that. Call it Dec 31st. So the exchange has to process and completed the trade prior to Jan 1 because on Jan 1 the owner of record is determined for the dividend pay out.
Please tell me if I am a retard with poor reading comprehension. I understand that holder of record get the split here but there are articles from CNN finance and Barrons both saying the exact opposite. If I am indeed a retard I'll take my ~$1000 bucks now.
Splits are supposed to work the same way. From the Nasdaq site:
The Dates
When a company announces a stock split, they give out two dates that are important to shareholders, a record date and an ex-date. You must hold the stock at the close of business on the record date to be eligible for the split, while the actual split itself and the adjustment to the number of shares in your account takes place on the ex-date.
With regular splits, there is usually a week or two between the announcement and the record date, then another gap between that and the ex-date. Reverse splits, however, usually take effect immediately on the announcement. Again, that points to the intended effects of a split. The company wants to give investors time to appreciate the positive implications of a regular split but doesn’t want traders to have time to dwell on what a reverse split says about the stock.
That AAPL thing was kind of odd because they also had a dividend going on in the same month. but the mechanics appear the same. From the AAPL investor site..
So according to this, owners as of Friday the 24th are due split shares to be received Fri the 28th after the close. On Monday the 31st trading begins with the new price.
Sanrith Descartes
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This is how it works for dividends. Selling a stock on the ex-div date means you get the dividend instead of the person who bought the stock.
If you read what AAPL posted on its own site it makes clear that you have to be the owner of record on the 24th to get the shares. which jibes with what Nasdaq says. I think there is just a wording snafu someplace.
Well I feel much better about having sold all my AMD and put it all into Tesla. This shit is dumb and makes no sense.
Sanrith Descartes
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Well this came out of left field...
Walmart partners with Microsoft for TikTok bid
REUTERS 12:09 PM ET 8/27/2020
Aug 27 (Reuters) - Walmart Inc(WMT) is partnering with Microsoft Corp(MSFT) in the software maker's bid for Bytedance-owned TikTok, the world's largest retailer said on Thursday.
ByteDance has been in talks to sell TikTok's North American, Australian and New Zealand operations which could be worth $25 billion to $30 billion to companies including Microsoft(MSFT) and Oracle, people with knowledge of the matter have told Reuters.
U.S. President Donald Trump has demanded that China's ByteDance, which owns TikTok globally, sell its U.S. operations, citing potential national security risk due to the vast amount of private data the app is compiling on U.S. consumers.
"We are confident that a Walmart(WMT) and Microsoft(MSFT) partnership would meet both the expectations of U.S. TikTok users while satisfying the concerns of U.S. government regulators," the retailer said in a statement.
The two companies are two years into a five-year partnership as part of the retailer's push for wider use of cloud and artificial intelligence.
Walmart (WMT) said TikTok's integrated e-commerce and advertising capabilities in other markets "is a clear benefit to creators and users in those markets."
The retailer's shares were up about 4.4% on the news.
Walmart partners with Microsoft for TikTok bid
REUTERS 12:09 PM ET 8/27/2020
Aug 27 (Reuters) - Walmart Inc(WMT) is partnering with Microsoft Corp(MSFT) in the software maker's bid for Bytedance-owned TikTok, the world's largest retailer said on Thursday.
ByteDance has been in talks to sell TikTok's North American, Australian and New Zealand operations which could be worth $25 billion to $30 billion to companies including Microsoft(MSFT) and Oracle, people with knowledge of the matter have told Reuters.
U.S. President Donald Trump has demanded that China's ByteDance, which owns TikTok globally, sell its U.S. operations, citing potential national security risk due to the vast amount of private data the app is compiling on U.S. consumers.
"We are confident that a Walmart(WMT) and Microsoft(MSFT) partnership would meet both the expectations of U.S. TikTok users while satisfying the concerns of U.S. government regulators," the retailer said in a statement.
The two companies are two years into a five-year partnership as part of the retailer's push for wider use of cloud and artificial intelligence.
Walmart (WMT) said TikTok's integrated e-commerce and advertising capabilities in other markets "is a clear benefit to creators and users in those markets."
The retailer's shares were up about 4.4% on the news.
TJT
Mr. Poopybutthole
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Araysar's post above you,
"If you buy AAPL or TSLA shares after the record dates but before Aug. 31, you will purchase shares at the presplit price. Following the split, you will receive the additional shares resulting from the stock split."