Is the stock market going to tank?

[dan_pdx]

Extremely unlikely

Cool, thank you. If I sell 1-week calls at 20% above market price, I can make beer and pizza money forever.

[rod9301]

Question on selling covered calls. I received some RSUs from a past employer and didn't sell them when I should have during the Covid bubble. Now I keep them to remind me I'm a fucking idiot who can't time the market. I'm wanting to venture into covered calls for the first time and wondering: I've seen that there are often some weird transient price spikes when presumably one algo sells like two shares to another outside of market hours at a screwball price. How likely is it that a call would get exercised as a result of one of those spikes?

Pretty hard to make a living doing this

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[dan_pdx]

Pretty hard to make a living doing this

Sent from my moto g 5G using Tapatalk

No argument, fortunately I'm not trying to. As noted above, it's just beer and pizza money. Back of the napkin math suggests I can make about 30% a year, which would be way better than it's been doing.

[TBS]

Question - is there an index fund for the European Defense sector?
I think this is a good time to reduce investment in US equities and under the circumstances euro defense would seem to have a lot of potential.
TIA

[summit]

Euro defense stocks jumped in December

[Cono Este]

Brock

It’s called pin risk. Always buy them to close when they get to be Pennie’s. The owner has u til midnight, Saturday, to exercise. A lot can happen.

[4matic]

10% wealthiest account for 50% of consumer discretionary. Those 10% wealthiest are overweight tech stocks. Decline is nothing so far. Could get to SP 5600 this week.

[4matic]

Just at a party after golf Sunday. Young guy telling me he’s an alt coin trader to avoid ETH. Old boomer telling me BTC was a store of value and that he was having a blast selling calls against NVDA paying for dinners with the gf.

What happens if NVDA drops fifty? Collectively, that can’t happen

[LeeLau]

Just at a party after golf Sunday. Young guy telling me he’s an alt coin trader to avoid ETH. Old boomer telling me BTC was a store of value and that he was having a blast selling calls against NVDA paying for dinners with the gf.

What happens if NVDA drops fifty? Collectively, that can’t happen

What happens if BTC drops back to 60? Unpossible

What happens if there's a US Civil War? Unpossible

[Brock Landers]

You can make some decent $ selling calls on nvda I’d assume??

[dan_pdx]

I'm not a former nvda guy, sadly, but I did randomly sell a covered nvda call yesterday morning. The expiration date is after earnings, but the way things are going, I can't imagine it would print. Can't decide if it's free money or picking up nickels in front of a bulldozer, but if I did get assigned, I would be up like thirty five percent, which would be just fine

[406]

I guess I was on to something thinking to short TSLA awhile ago. Oh well, worth the losses in my S&P funds to watch that one drop. Hopefully down below $100 and gets kicked out of the S&P :-)

If it gets below a certain price, does Elon need to repay loans he took out against the stock? I still can't comprehend how that all works.

[dan_pdx]

I should let someone who knows what they're talking about answer, but wheres the fun in that? Yeah, I think if prices drop enough then he has to sell stock to pay back loans secured by the stock. That further depresses the stock and he has to pay capital gains on the sale proceeds: a win/win for the American people.

I've been thinking I should just buy cheap way out of the money puts on TSLA with any spare couch change. Probably a better use of my money/more effective than donating to the Dems

[The Reverend Floater]

I guess I was on to something thinking to short TSLA awhile ago. Oh well, worth the losses in my S&P funds to watch that one drop. Hopefully down below $100 and gets kicked out of the S&P :-)

If it gets below a certain price, does Elon need to repay loans he took out against the stock? I still can't comprehend how that all works.

[peaks his head in] And at what point does the board come to their senses? Pretty soon, me thinks. [Leaves quietly]

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[up an down]

Rev, if you mean the board of directors for Tesla coming to their senses?? never.. all the directors were chosen by Musk and are total asskissers and enablers.. and 2 of the directors are family.

[TBS]

@406

If it gets below a certain price, does Elon need to repay loans he took out against the stock? I still can't comprehend how that all works.

If the value of his pledged shares falls below the loan amount (or some multiple thereof), the lenders will require he pledge more shares, pledge other assets or pay down some of the loans with cash.

Which can lead to crazy behavior if the stock price is falling fast.

[Brock Landers]

Tesla is up ~50% from where it was 4 months ago. What are we talking about here.

[406]

wishful thinking

[dan_pdx]

TSLA has the same p/e as GME: fundamentals don't apply to either. Having said that, I think TSLA holders are less likely to HODL in the face of continued bad news than the GME crowd. It will take a lot to dent the optimism, but we might be seeing the start of that.

[bobz]

Rev, if you mean the board of directors for Tesla coming to their senses?? never.. all the directors were chosen by Musk and are total asskissers and enablers.. and 2 of the directors are family.

Yes. It's the financial management equivalent of Tesla "Autopilot" (fire engine blocking the lane with flashing red lights? full speed ahead!) I'm assuming that if any of them (including family) does anything that Musk doesn't want, they're off the board instantly.

Another thing to keep in mind about Tesla's stock price is that, as of its last earnings release, numbers are being propped up by the company's Bitcoin holdings, as a hedge against the fact that Tesla's sales of actual products for actual money keep going down. Not going to say anything about what BTC's doing lately, because who the fuck knows where it goes next, but it's something to keep in mind. Of course, Cult Of Elon is sure that he's going to end up batting 1-for-10 on his autonomous driving predictions, any month now, so who cares about anything else.

[The AD]

<p>
Anyone else out there have a decent amount of money in a high-interest savings account? Ive been putting it off for way too long, but finally started an account with Barclays (tiered savings). Their current interest rate is 4.4% if you have at least $250k in the account and until March 8th theyre offering a $200 bonus for new accounts. I feel sort of dumb now for waiting so long to do this. I was earning more like 2.5% in the account I was using before.</p>

[LeeLau]

<p>
Anyone else out there have a decent amount of money in a high-interest savings account? Ive been putting it off for way too long, but finally started an account with Barclays (tiered savings). Their current interest rate is 4.4% if you have at least $250k in the account and until March 8th theyre offering a $200 bonus for new accounts. I feel sort of dumb now for waiting so long to do this. I was earning more like 2.5% in the account I was using before.</p>

5.5% in GIC (Canada) but that was last year. Minimum was 200k.
Return would only be 4.5% currently

[skaredshtles]

Just been keeping cash in a money market account, which has been paying pretty well for the last 12-18 months.

[406]

I am assuming rates are going to trend down, so for cash doing gt 4 percent cds or t-notes on 2-5 y terms. If they end up going up or need the cash, easy enough to close them early.

[The AD]

I did have some money in a CD, but it seems like lately many saving accounts have higher interest so switched over. I'll probably switch back if the savings account interest rates continue to trend down.