Fills

[PuppBaby]

High beta is a fancy pants way of saying more risky (or to be precise, likely to be more volatile than the 'index').

To take an example off the top of my head, NVDA often goes up and down more than the 'Index' whereas WMT goes up and down less.

No doubt I shall now be struck down with Commentator's Curse and WMT will go bananas.

Aha thanks for the clarity fancy man, hopefully bananas up if you're in it. I'm not so I'm hoping the opposite

[SOL]

I'm genuinely curious if your wheeling in and out of options generated any real money this year.

Pretty good thus far: started on April 26th/22, the Wheel thus far, to week ending Aug. 5th/22 ---> +$127,122 USD.

I'm using some margin, and total interest costs in that time period for this margin use ---> +25,770 USD.

Of course, my open positions as a group are down a lot, but I accept that this is the way it goes when one has a high beta portfolio. You Dance With Spears, you will bleed. Haven't had to change my lifestyle in any way ...

Learning a bit of proper risk management indirectly and directly from fellow sub Harryg on the side, to reduce the beta a bit ...

Haha wow that's wild I cant mess with Margin I'm a firm believer in not owing someone else any many, I realize the potential benefits of it but it makes me very uncomfortable. I have yet to use all of my funds that I can live without so I also cannot justify it that way. Congrats on the good work. I separated my accounts one for stocks which is more or less at break even maybe 1%+ given todays spike up. My riskier option investing account is up over 30% since early this year.

What does a high beta portfolio mean? Is this just how you classify your different portfolios, can you give me other examples.

Since you have not used up all your funds, there is no need to mess with margin and one should only use margin if one is able to cover the margin if push comes to shove otherwise you will be shoved and be stomped into oblivion

[MarkD]

Just bought and sold calls on SQQQ, in around 9:30am, out ten minutes ago. Dinner money for the weekend. Doesn't always go well.....

[LoriPrecisely]

High beta is a fancy pants way of saying more risky (or to be precise, likely to be more volatile than the 'index').

To take an example off the top of my head, NVDA often goes up and down more than the 'Index' whereas WMT goes up and down less.

No doubt I shall now be struck down with Commentator's Curse and WMT will go bananas.

Aha thanks for the clarity fancy man, hopefully bananas up if you're in it. I'm not so I'm hoping the opposite

The best thing about using margin for me is, I don't get charged interest as long as it is being used for Cash Put Assignment reserve. So, that is what I use it for.

[PuppBaby]

High beta is a fancy pants way of saying more risky (or to be precise, likely to be more volatile than the 'index').

To take an example off the top of my head, NVDA often goes up and down more than the 'Index' whereas WMT goes up and down less.

No doubt I shall now be struck down with Commentator's Curse and WMT will go bananas.

Aha thanks for the clarity fancy man, hopefully bananas up if you're in it. I'm not so I'm hoping the opposite

The best thing about using margin for me is, I don't get charged interest as long as it is being used for Cash Put Assignment reserve. So, that is what I use it for.

Ahhh good idea, I never thought of this.

[jlhooter]

High beta is a fancy pants way of saying more risky (or to be precise, likely to be more volatile than the 'index').

To take an example off the top of my head, NVDA often goes up and down more than the 'Index' whereas WMT goes up and down less.

No doubt I shall now be struck down with Commentator's Curse and WMT will go bananas.

Simpler example: TQQQ goes up & down 3x QQQ on a daily basis.

I will use the term fancy pants at least twice by the weekend.

Does this mean that a beta of 1 represents the security and index have the same volatility? Or what would beta be if they have the same volatiliy?

[SOL]

High beta is a fancy pants way of saying more risky (or to be precise, likely to be more volatile than the 'index').

To take an example off the top of my head, NVDA often goes up and down more than the 'Index' whereas WMT goes up and down less.

No doubt I shall now be struck down with Commentator's Curse and WMT will go bananas.

Simpler example: TQQQ goes up & down 3x QQQ on a daily basis.

I am surprised you did not use Goody two shoes in a satirical manner

https://youtu.be/ObnWoyFACfw

[AstuteShift]

I use margin all the time, it’s my friend.

Those who are scared of it usually don’t have proper risk management however this is more for people who have experience

[Yodean]

Haha wow that's wild I cant mess with Margin I'm a firm believer in not owing someone else any many,

Actually, for the longest time, I held this same belief. Never had a mortgage (means Death Contract in French, from what I understand).

Started investing in 2004 on the side - had a busy full-time gig so I was just mostly subscribing to various financial newsletters and doing exactly what they told me to do with my money.

Learned that this wasn't exactly a formula for success, lol. Still, accumulated a lot of experience, which mostly boiled down to: nobody really knows anything, lmao. Certainly not the future. But a lot of people are really good at drawing beautiful lines on a chart to suggest they know what is going to happen in the markets ...

Never touched margin until earlier this year - inspired, ironically, by Sol's writings on this subject. Also spoke to some investing friends who gave me some "safe" guidelines to follow when using margin for the 1st time - like, use only 20% to 30% of your limit, try to never use more than 50%, etc. - basically, don't be an idiot.

Of course, I tend to not like rules and quickly maximized my margin use - mostly to see what it felt like - and subsequently got politely margin-called a few times, for small amounts. I've got enough collateral so that if push came to shove, I can sell enough assets to cover all my margin use on any given day, even at max. margin, so I think I'll be okay. Also have reduced my margin use somewhat.

So my original experiment was to see if I could generate enough net option premium through spinning the Wheel to cover my margin interest costs. Thus far, Wheeling has done that, and much more, so it's nice.

The basic idea is to erode away my remaining margin Wheeling and letting a portion of my stocks get called away at a profit.

The way I explained it to someone was that in a sense, the margin use is like a mortgage - and all my stocks in aggregate is like a house - and I'm slowly paying off the mortgage through spinning the Wheel.

Real interest rates are in the neighborhood of 5.74% or so, at least (CPLie - 10yr yield), prolly a lot higher - 12-13% or so? - in terms of annual loss of purchasing power of cash.

The margin interest rate is currently 5.25% for me for USD, prolly will go up again. So in a sense you're "getting" a +7% return by using margin at these rates, theoretically, vs. cash.

Governments like inflation as a stealth tax to erode away government debt over time.

In a similar vein, for the retail investor, margin, when used correctly ---> the theory is that if real interest rates (i.e. loss of purchasing power) are greater than the interest on your loan/margin/mortgage, it makes sense to borrow, assuming you have the collateral to pay it back in the event of a Dark Swan landing on your shoulders.

Nfa.

[PuppBaby]

Haha wow that's wild I cant mess with Margin I'm a firm believer in not owing someone else any many,

Actually, for the longest time, I held this same belief. Never had a mortgage (means Death Contract in French, from what I understand).

Started investing in 2004 on the side - had a busy full-time gig so I was just mostly subscribing to various financial newsletters and doing exactly what they told me to do with my money.

Learned that this wasn't exactly a formula for success, lol. Still, accumulated a lot of experience, which mostly boiled down to: nobody really knows anything, lmao. Certainly not the future. But a lot of people are really good at drawing beautiful lines on a chart to suggest they know what is going to happen in the markets ...

Amen to that. I have learned from an early age that most people haven't a clue about anything that is presently going on around them let alone the future.

Death Contract ... only for those that aren't Tactical

[froggo]

froggo fills:
11/8/22, sold, BIB @ $ 61.25

[MarkD]

Just repurchased a 1/3 SQQQ Aug26 30C @ 5.25. Trying to add to my last trade gains.

https://imgur.com/a/AeP09K6

green line is VWAP on a 1/2 day chart (highest time frame VWAP can be used on Stockcharts.com).

[Yodean]

Just repurchased a 1/3 SQQQ Aug26 30C @ 5.25. Trying to add to my last trade gains.

Oy vei, this is a dangerous trade, imo - hopefully you've got a stop on it.

Most of my personal indicators are telling me that "risk on" sentiment is on the rise, which usually translates to a rise in the "risk on" indices, like NasComp and Russell, or at least a range-bound market.

Still, could work out ... good luck.

[MarkD]

This is the actual chart I use to trade ST options with on the TQQQ/SQQQ.

30 minute VWAP. Pick your indicators.

https://imgur.com/a/6ZleZuu

[bpcw]

Just repurchased a 1/3 SQQQ Aug26 30C @ 5.25. Trying to add to my last trade gains.

Bit early for this imo, have thought about using sqqq for October time but it is high risk in a volatile market, need to do your sums as ETFs are recalculated daily.

For example if the Nasdaq went down by 10% one day and up 10% the next day, with sqqq you would have 0.91% of your original amount.

I can't use options so this is an option but need to be nimble with it.