New answers tagged

5

@D Stanley spelled out the possibilities for your trade. Unless lightning strikes, this position is a goner. A useful adjustment to be aware of for a losing position is the Long Call Repair Strategy. In short, you convert the long call to a vertical, lowering the break even point. IMO, it should be done if you can do this for no additional cost. The ...


20

When you buy an option, the premium is a "sunk cost". There's no way to get that premium back. You have to hope that either the option appreciates in value so you can sell it, or that the profit at expiry is enough to cover the upfront cost. If you now have an option that's basically worthless, you have two options: keep it and chalk it up to a lesson ...


1

This topic came up under another chain and I was referred here. My two cents is that the stock market is zero sum. For every buyer, there is a seller and the amount of money involved remains the same. Money just changes hands, regardless of what happens to the price of the stock. Here's a simple scenario: There are 3 people (A, B, and C). Each one has $...


2

Averaging a $30 per day gain on $10k generates a 75% annual return. If you are referring to investing, that's rarely going to happen unless you happen to pick a lottery ticket winner. For example, KRTX was up 750% in two days this week ($17.68 to a high of $152) due to the results of a clinical trial). For normal people, expect 8% a year. My take on ...


1

Is it possible to make 30 USD per day starting with 10000 USD? How much risk would I have to take to get this return? The optimal stock market portfolio yields 8%. The risk-free interest rate is at 0% where I live (Eurozone). But let's say 3% because US conditions are different from Eurozone. As the other answer calculated, 30 USD daily return is 198% ...


0

The formula is correct. You can't understand that formula because that web site's explanation is worthless. At first glance, you're always going to get a value of zero for the new calculation because you're calculating today's value based on multiplying by yesterday's value which on the first day is zero. What they fail to tell you is that: If there is ...


0

The linked page is a poor explanation. It doesn't even say how volume enters the indicator! Also it has a bizarre unsupported statement that "Using the Positive Volume Index is a profitable trading strategy." A better explanation includes the following notes: If volume today is less than or equal to volume yesterday: PVI = Previous PVI If there is ...


4

Making even just $30 a day on a $10,000 investment would be 0.3% daily return, or 198% annualized (compounded daily), or 109% annual return without compounding. You'd have to take some massive risk to get even such a seemingly small daily return, which would basically be doubling (or tripling if you could reinvest) your money every year. $30 a week is a ...


2

If the brokers are listed in Monevator's "UK’s cheapest online brokers" list then I'd be quite confident they're not scammy or dodgy. (My guess is it's one of the "Share dealing brokers" in the third table on that page is going to be what you're looking for, but watch out for "inactivity fees".) For a second opinion and some other options, take a look at ...


1

The regulatory authorities in the UK are the Financial Conduct Authority and the Prudential Regulation Authority of the Bank of England. Contact them to “validate online stock trading platforms". Then contact the brokers to see who has the features you seek: Lowest commissions No minimum account size No account maintenance fees No data fees No odd lot ...


0

The call option writer gets the option premium. If the option is exercised, the option writer gets the agreed price but bears their own cost of acquiring the underlying share. There may be transaction costs for each part of the process. So if the option is not called, the payoff for the option writer is: Payoff = OptionPremium - TransactionCosts And if ...


1

The call seller has the obligation to sell IBM at $100 if it is over $100 at expiration. If it is, his gain or loss will be the premium received less the intrinsic value of the call. The intrinsic value is the in-the-money amount. 1) At $105, the intrinsic value is $5 so the loss is - $300 (+ $2 - $5) 2) At $101, the intrinsic value is $1 so the gain ...


0

According to https://www.quora.com/How-does-one-calculate-returns-on-a-futures-contract/answer/Joe-Fallico the formula should be: (price today - price yesterday) x dollar equivalent for a price move of one tick return = -------------------------------------------------------------------------------- margin requirement per contract


0

Subtract yesterday's position value from today's position value. Then divide that result by the the time-weighted average of year-to-date deposits and withdrawals plus the beginning year account value. Well, I think a software is needed. I recommend 'KBH Investor Accounting' but if the previous day's gain or loss is to also be considered in the time-weighted ...


2

Think about the income produced by the portfolio at retirement. Then a $75,000 income requires a $2,142,857 portfolio at 3.5% return. To produce the portfolio requires $75,000 a year put-in for twenty years at 3.5% return with monthly compounding to reach $2,209,253 . Or even yearly compounding reaches $2,195,210 . The first problem is taxes and so taxes ...


2

I'd suggest you read JL Collin's stock series. This will give you a good primer on the pros and cons of stocks and bonds and (most importantly) teach you how to think about your investments. His main recommendation would be to invest in index funds which have been shown to beat the vast majority of actively managed funds over the long-term. I highly ...


0

If you moved your cyrtpocurrency to Coinbase, no one but you has any idea how much you paid for it, or even when you originally acquired it. As such, Coinbase won't be able to report the cost-basis to the IRS. If you move cash into Coinbase and then buy and sell crypto, they will report cost-bases to the IRS, and report it to you in the Form 1099 family.


2

I'm not quite sure I understand what context your goal would be used in, but there are two approaches that come to mind. Either you just state your goal is to reach a price of $80 and you are currently at $61, which means you are 61/80 = .7625 = 76% of the way to your goal. Alternatively, if you want starting price factored in then, you could rephrase ...


0

The number of locked-up shares are generally found in regulatory filings and many research platforms will provide this--i.e. Bloomberg. Your guess is generally good; however, your number will include other shares like ESOP. If the owner has more than 5% ownership or is otherwise considered an insider. Every lockup period is different; generally, though the ...


3

I'm not completely clear on your question, because it seems to make trading cryptocurrencies (CC for short) harder than it really is. Also, be careful using the word "property"; CCs are property in the same sense that stock shares are property, but they are not "real property". Some people see the word "property" and internally convert it to "land". As ...


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