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PaperclipPerfector  7mo ago (text post)   3253 thread views

Friday Fun Thread for March 29, 2024

Be advised: this thread is not for serious in-depth discussion of weighty topics (we have a link for that), this thread is not for anything Culture War related. This thread is for Fun. You got jokes? Share 'em. You got silly questions? Ask 'em.

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Have you heard the phrase. Picking up pennies in front of a steam roller? You're much better off in an index fund if youre looking for 10% returns.

As I understand it, @WhiningCoil 's strategy of covered calls is the opposite. He's getting a slow but steady return by giving up the chance of a big upshot. It's actually negative EV, because the big upshots are what drives the market, but it can make a living.

For real "pennies in front of a steam roller" you need to sell naked puts... I've been there and it's a hell of a drug...

Yes i didn't notice he said covered. My mistake for sure.

In this case, he's covered since he owns the underlying security. So the worst that would happen is his COIN stock gets called away (at a very inflated price to boot).

It gets called at the strike price; not the trading price.

I guess the strike price is high so he wouldn’t be too bent out of shape at selling.

The loss is the delta between the market price and the strike price.

I think he was liquidating anyways though -- so if he sells on day 1 for market price, he's not getting any appreciation regardless.

In that case, continuing to sell the deep out of the money calls is simply risking the asset dropping in value.

Ah i missed that they were covered. Wouldn't that negate the inflated price thought? That is the whole point of the options people are buying.

I have that too. This is not the only thing I'm up to. Not even the majority thing. Not even the majority of a minority thing. It's a minority of a minority of a minority of my investments. I'm trying it for fun.

I guess then it's worth assessing whether you're actually having fun or if its just the feeling of anxiety/thrill that you want, at which point you could get that by trying roller coasters, skydiving, or just normal gambling at a casino.

Back when I dipped my toe in day-trading cryptos I approximately broke even but it became evident to me that it wasn't a good kind of stress it induced and the attendant compulsion to keep checking the charts distracted from more enjoyable pursuits. Gardening, DIY projects, and futzing around with 3D printers and, more recently, AI media production have been overall more fulfilling to me.

Not that I judge what you do with your time and spare change.

It's less day trading and more week trading. Less gambling, and more selling the lottery tickets to gamblers.

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