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re: 401K under Biden

Posted by James_Wilson on 11/25/20 at 12:26 am to wutangfinancial

quote:
Blackrock and Vanguard will never allow this to happen. Lawyers write laws not progressive freaks that want to raid your retirement accounts for social justice. They represent their clients not an ideology.

What exactly would they disagree with?

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re: First time trading options - Am I doing this right?

Posted by James_Wilson on 11/24/20 at 2:04 pm to Bestbank Tiger

quote:
Easier method of doing it would be to place a stop loss order for $26. Doesn't cost anything and it either triggers automatically if that price is hit or it expires automatically at the specified time.

Except with a stop loss order, he loses money dollar for dollar all the way down to $26.

With the zero cost collar, he will gain back some of the loss on the stock as the PUT becomes more valuable as it approaches the strike price.

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re: Anybody cashing out when Dow hits 30K?

Posted by James_Wilson on 11/24/20 at 1:57 pm to JohnnyKilroy

quote:

He probably didn't pay for that advice. The advisor probably just wasn't effective in talking him off the ledge

You might be surprised.

Retirement Advisors of America is an example of “advisors” that routinely give such advice.

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re: First time trading options - Am I doing this right?

Posted by James_Wilson on 11/24/20 at 12:34 pm to Tigerfan56

You could do a zero-cost collar by purchasing the $26 Jan-21 PUT while simultaneously selling the $33 Jan-21 CALL. Both currently have a $3.90 premium.

You are capping your upside, but buying the insurance you were wanting for a net zero cost.

Or sell the $43 Jan-21 CALL to collect $1.95, halving the price of the insurance and giving you $10 more headroom on the upside.

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