What Did You Buy Today?

[fenders53]

(03-30-2021, 05:35 PM)ken-do-nim Wrote:

(02-25-2021, 10:25 AM)fenders53 Wrote:

(02-25-2021, 10:00 AM)divmenow Wrote: Bought some LDOS. Between the earnings miss and short report I haven’t seen it this low in a while. So I said why not lol. You in on this one too Fenders ?

I haven't researched it.  Hadn't heard of it until you and Otter were discussing it last week.  I am trying to not add too many more new names.  We'll see how long that lasts. 

What I need is for tech to get hammered for real again, but this market is resilient.

Very small trades this morning.  Added a few shares to DG-ARKF  Sold a few SLV puts.

(03-30-2021, 12:49 PM)fenders53 Wrote:

(03-30-2021, 12:24 PM)Otter Wrote:

(03-30-2021, 12:09 PM)fenders53 Wrote:

(03-30-2021, 11:25 AM)ken-do-nim Wrote: Tax consequences be damned, I got out of one of my leveraged positions today in LABU.  I believe it has further to fall and I don't need to be along for the ride.  (Bought @ $60/share, sold @ $70/share, but in the interim it zoomed up to $180.  For the future I am going to come up with a drawdown rule so that I can profit from huge spikes.)

Leveraged funds are fun and with the right plan you can profit if the market goes your way at all  Buying and holding through thick and thin just isn't the same as a handful of stock shares.  There has been no better time for triple leverage funds.  You enjoyed the good part.  Pull up a chart on most any of them and you will see the drawdown is just too much if you pay no mind to momentum.   They get crushed in a downdraft, they gradually lose through options cost slippage in a sideways market.  It only works when the market is at least moderately bullish.  I know you don't understand options but you are effectively buying call options every day.  I sell options most every day so I can pocket the slippage.

TL;DR fenders rolls with Theta Gang. 

If 2021 goes like 18/19/20. I am finally getting that theta tattoo I always wanted.  If Ken doesn't stop it I am going to work "Thanks Ken" into my ink.   

Seriously though Ken I am glad you joined the forum because you participate daily.  I want everyone here to win.  I am going to find a link for a basic option vid you need to find time to watch.  You don't have to trade options, but the reality is you ARE in fact playing options with these triple leveraged funds. You need to know what is going on or it's just reckless and I want you to retire early as possible.  You have to understand the basic principles as you are throwing down thousand dollar bills in these funds.  I am NOT anti leveraged funds, but I try to be careful with them and always in moderation.  It's a side bet, not a core strategy, because it will end bad if I get too bold for too long.

Sure I'm happy to watch the video and learn.  Please do.

Also, I have to say I'm quite pleased with the way my portfolio did today.  On a day when all 3 major indices were in the red, my taxable account was up $51.  Just to be positive on a day like today is pretty cool.  Prior to the DGI strategy, my portfolio went as the Nasdaq went.  And this despite AVGO being my biggest loser today.

For the Raytheon story, I'll post something in Off Topic when I get a chance.  It's a juicy story, involving a blizzard, a murder, code reviews but no code running, an obscure programming language, and meeting my doppleganger and realizing I wouldn't get a raise to match his salary.

I'd love to read the Raytheon story.  I am invested.

Glad you had a good day.  Tracking along with the Nasdaq has been very good the past few years.  Being triple leveraged is not where I will ever be though.  We can't know the future so all we can do is look at charts. There are about three times in my lifetime that 3X leverage against QQQ would take whatever your holdings were to zero or very close to zero.  That makes it almost a statistical certainty it will happen to you eventually.  Who knows when of course.  You could make a few million before you head back to zero.  It doesn't really matter how long it takes if it happens.  Zero is zero.

I can't decide what your personal risk-reward profile is.  Tax implications can't drive the decisions in a 3X leveraged position.  I think you may have the right idea in leveraging a chip stock run this year.  Especially from here.  Just be careful with it or you will give it all back at some point.  I do use leverage myself on occasion, but it's not a buy and hold plan.  It's not a matter of if you give it all back, but when you give it all back.