Santa rally was a bust. I have over 8k unrealised loss on shares I hold on $Direxion Daily TSLA Bull 2X Shares(TSLL)$ $MARA Holdings(MARA)$ $AST SpaceMobile, Inc.(ASTS)$ But I did something right before this bloodbath. I closed all my weekly positions (lucky) and started writing LEAPS puts and some calls. This gave me about 20k premium. [Miser] And what did I do with this 20k??? I bought more shares at a discount. [Cool] Holding weekly expiring this week could have been a major mistake. When the prices bounce back, my put LEAPS will be in the green and can be closed early in case.
FEDs ruined the Christmas and the Santa Rally. Well, still with a good profit. I have earned over 35k and have an unrealised loss from the shares about 7k. [Facepalm] Hopefully, this will recover next week. $MARA Holdings(MARA)$ $Direxion Daily TSLA Bull 2X Shares(TSLL)$
People really don't understand the power of compounding and option premiums. That's why they buy and hold shares for 5 years. Case 1: Let's say you got it for $20k and after 5 years it grows to 200k (10x). Case 2: Let's say you collect option premiums weekly at 2%. Then your 20k will grow in 5 years to $3,444,091.28. Why? Because, each week you collect 2% interest (premium) and reinvest this new total the following week. So, it grows exponentially. What about tax? Let's say you pay 40% tax. Still you ended up with $779,026.46 And if you just hold the shares (without options), then you get discounted tax by 50% as in Australia. The post tax amount (20%) for case 1 is $164,000. 2% options are not inherently riskier as they are with good companies or ETFs. However, I push th
Everything is pretty much red today as markets are heading towards the end of the week. I have a gut feeling $Monolithic Power(MPWR)$ will start climbing soon and possibly 30-50% in 2-3 months. Not financial advice, and I don't do much long shares these days as I just do options. [Grin]
$Fortinet(FTNT)$ $Shopify(SHOP)$ Bullish thank you god [Miser] market is settling down... Soon will get assigned 1200 $AST SpaceMobile, Inc.(ASTS)$ shares, next week I will sell weekly calls on them for 2.50 premium. Total = 1200 * 2.50 = $3000. [Miser]