- 3,093
- 7,856
Investing General Discussion
- Thread starter Furious
- Start date
- 3,093
- 7,856
Sanrith Descartes
You have insufficient privileges to reply here.
- 46,723
- 131,278
There are multiple discussions about this previously. Long story short, letting them expire worthless opens you up to a black swan event on expiry day. Buying to close when the price is down under 10 cents eliminates that risk but hurts overall returns. Its one thing to close a $1.50 premium for 5 cents and quite another to close a 25 cent premium for 5 cents.
You might be better off looking at selling covered calls on the monthly expiration (depending on the stock) as the open interest tends to be much higher and the spread better. You have to do the math and see which is the better value each time you are looking to trade. I don't follow a hard and fast rule. I examine the charts and technicals along with the option chain on each trade I make.
- 2
Big Phoenix
Pronouns: zie/zhem/zer
- 47,555
- 102,461
Indyocracy
Stock Pals Participant
- 1,142
- 5,305
So I have some friends who are intrested in pooling resources to do like an investment club. The goal is putting in some seed money into a partnership and then discussing and deciding on investments as a group. Really it is just an excuse for my high school buds to get together and chat finance. What are the implications of forming like a partnership for this kind of thing?
Big Phoenix
Pronouns: zie/zhem/zer
- 47,555
- 102,461
- 3,093
- 7,856
I have friends who have a 4 man real estate investment group. They set up a corporation and bought a few duplexes and townhouses around. They bought in the early 2000s so obviously they’re sitting high right now.
Implications are destroying friendships and whatnot if things go bad.
- 1
Sanrith Descartes
You have insufficient privileges to reply here.
- 46,723
- 131,278
I am way too much of a control freak to do something like that. Good luck.
Consider for stock investments, what does more money get you that it doesnt get you solo having total investment control? For real estate or something it would be different because of the buy-in cost.
Sanrith Descartes
You have insufficient privileges to reply here.
- 46,723
- 131,278
Indyocracy
Stock Pals Participant
- 1,142
- 5,305
No we are small ball players I am trying to convince them we can just invest individually and cheer each other on lol.
Furry
Email Loading Please Wait
- 23,421
- 31,263
Nah bro, this is a sick investment deal. Lets all put our money into my... OUR fund and we'll make money together.
Big Phoenix
Pronouns: zie/zhem/zer
- 47,555
- 102,461
Simulator - Investopedia Stock Simulator
Basically fantasy sports but for stocks.
Blazin
Creative Title
- 7,405
- 37,289
Yup.
Buying to close a bunch of 1/15 exp calls on my portfolio today. All below .10 to prepare to resell them while we are pushing into new highs.
LMT position has been frustrating, have closed 375 calls and rolled them down to 350 (1/15 exp) to suck in some more premium. Will probably keep selling calls instead of closing position, but will sell them likely just OOM. I'm currently break even on the trade entry but have collected over $10/share in options against the position so far.
Last edited:
- 2,848
- 3,165
Its not worth it to actually pool money and go through all that bullshit just for stocks. Discuss and strategize, but dispense with the actual pooling of money.
- 1
Hateyou
Not Great, Not Terrible
- 17,736
- 47,862
Fuck that. Dealing with the taxes of that would be a pita. Does the account holder have to pay them all? Also money does some bad shit to normally sane people. All it would take is one person getting butthurt about something to turn that into a lawsuit nightmare.
Do what normal bros do and get separate accounts and cheer each other on in a group text specifically for that. Do stuff like “hey let’s all buy XXX tomorrow” or “let’s all buy $1k of a separate weed stock and see which performs better” and things like that. It’ll be a lot more fun, less risky, and there won’t be arguments or hurt feelings.
- 1
- 1
Sanrith Descartes
You have insufficient privileges to reply here.
- 46,723
- 131,278
Its one of the odd positions. Every single fundamental says its a $400 plus stock but it just gets no love. At this point I hold it because I like the company and console myself with the 3% dividend. I am in the same boat with NOC. Im green in them both but they just cant break out. Maybe Biden will start a war someplace.
Hateyou
Not Great, Not Terrible
- 17,736
- 47,862