Author Topic: Stocks  (Read 1180477 times)

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #5100 on: January 07, 2021, 11:35:44 AM »
Where is there a place to see stock market charts that adjust for factors such as inflation and real value?

Not aware of any, and "inflation" is too ambiguous. There are many different ways to measure it, including all of the various CPI metrics and probably many others. You'd have to find an appropriate inflationary measurement first and then look for someone who picked the same one as you (or do the math yourself).

Offline madhocker

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Nov 2020
  • Posts: 306
  • Total likes: 83
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: USA
Re: Stocks
« Reply #5101 on: January 08, 2021, 11:02:12 AM »
Id say TSLA going to take a break and NIO to about 55
Thanks @avrohomgelb  :D
You were right on NIO....

It may be worth another look before the end of the day as they are unveiling a new model tomorrow.

Offline madhocker

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Nov 2020
  • Posts: 306
  • Total likes: 83
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: USA
Re: Stocks
« Reply #5102 on: January 08, 2021, 11:21:08 AM »
Click on tweet to read the thread with some history lessons.

https://twitter.com/chrisbloomstran/status/1340414130658820096

Or read the entire thread here: https://threadreaderapp.com/thread/1340414130658820096.html
Not the first time TSLA is defying history.

Is there any explanation to this insanity?

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #5103 on: January 08, 2021, 11:53:09 AM »
Not the first time TSLA is defying history.

Is there any explanation to this insanity?

Lots of explanations, take your pick. Most people agree that it's insane, but a lot of that is bitterness from missing out

Offline Shmulie

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 1529
  • Total likes: 526
  • DansDeals.com Hat Tips 4
  • Gender: Male
    • View Profile
  • Location: Brooklyn
Re: Stocks
« Reply #5104 on: January 08, 2021, 12:29:36 PM »
Lots of explanations, take your pick. Most people agree that it's insane, but a lot of that is bitterness from missing out

I don't see any plausible explanation, I believe current valuation is absolutely insane. I am a big fan of Tesla and it was actually the first stock I bought. The only reasons I haven't sold is because I'm afraid of the tax consequences and since it seems to defy logic, it may very likely keep going up. I wouldn't be surprised now if it hit a $1t market cap

Offline madhocker

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Nov 2020
  • Posts: 306
  • Total likes: 83
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: USA
Re: Stocks
« Reply #5105 on: January 08, 2021, 01:24:04 PM »
I don't see any plausible explanation, I believe current valuation is absolutely insane. I am a big fan of Tesla and it was actually the first stock I bought. The only reasons I haven't sold is because I'm afraid of the tax consequences and since it seems to defy logic, it may very likely keep going up. I wouldn't be surprised now if it hit a $1t market cap
A big part of valuation is supply and demand. As long as people want it it will continue going up. Only question is what would be the trigger to have the demand drop.

Online aygart

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: May 2008
  • Posts: 17407
  • Total likes: 14342
  • DansDeals.com Hat Tips 14
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
Re: Stocks
« Reply #5106 on: January 08, 2021, 01:26:57 PM »
A big part of valuation is supply and demand. As long as people want it it will continue going up. Only question is what would be the trigger to have the demand drop.
Not as long as people want it but rather as long as NEW people want it. Today's level of supply and demand created today's price. For it to go up there needs to be either additional demand or less supply.
Feelings don't care about your facts

Offline Shmulie

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 1529
  • Total likes: 526
  • DansDeals.com Hat Tips 4
  • Gender: Male
    • View Profile
  • Location: Brooklyn
Re: Stocks
« Reply #5107 on: January 08, 2021, 02:00:46 PM »
So what's the best way for me to hedge my position?

Offline Mikeoracle

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2008
  • Posts: 2037
  • Total likes: 68
  • DansDeals.com Hat Tips 4
  • Gender: Male
    • View Profile
  • Location: NJ
Re: Stocks
« Reply #5108 on: January 08, 2021, 02:03:55 PM »
So what's the best way for me to hedge my position?
Puts are way too expensive.
If you have 100 shares or more, you could sell out of the money (covered) calls to keep pulling in the premiums for income along the way. The premiums are very hefty, even if you only go a week out and very out of the money to be safe to limit the potential of them being exercised (although that can happen of course with a big spike).

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #5109 on: January 08, 2021, 02:05:23 PM »
Puts are way too expensive.
If you have 100 shares or more, you could sell out of the money (covered) calls to keep pulling in the premiums for income along the way. The premiums are very hefty, even if you only go a week out and very out of the money to be safe to limit the potential of them being exercised (although that can happen of course with a big spike).

Selling covered calls is not a hedge. You're actually trading away your upside potential and leaving your downside exposed.

Online ExGingi

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Nov 2015
  • Posts: 15636
  • Total likes: 7724
  • DansDeals.com Hat Tips 19
    • View Profile
  • Location: 770
  • Programs: בשורת הגאולה. From Exile to Redemption. GIYF. AAdvantage Executive Platinum®
Re: Stocks
« Reply #5110 on: January 08, 2021, 02:09:23 PM »
Selling covered calls is not a hedge. You're actually trading away your upside potential and leaving your downside exposed.

I didn't check the premiums on TSLA and I don't own it but for some stocks I own with nice gains I buy puts for protection and sell calls to fund the put premiums.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline madhocker

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Nov 2020
  • Posts: 306
  • Total likes: 83
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: USA
Re: Stocks
« Reply #5111 on: January 08, 2021, 02:23:06 PM »
I didn't check the premiums on TSLA and I don't own it but for some stocks I own with nice gains I buy puts for protection and sell calls to fund the put premiums.
You may have funded the put, but you are still limiting your upside potential.

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #5112 on: January 08, 2021, 02:42:17 PM »
Check out TSLA option prices. Calls and Puts at the same strike (for reasonably OOM) are nearly the same price. It shows how extreme the volatility is believed to be.

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #5113 on: January 08, 2021, 02:44:50 PM »
You may have funded the put, but you are still limiting your upside potential.

This would be a good hedging strategy though for taking income from a stock. Downside risk is limited for free and get paid to accept limited upside potential. There's still risk of being exercised and priced out of buying the stock back if there's a spike but nothing worse than that.

Offline ShimshonK

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Nov 2018
  • Posts: 550
  • Total likes: 148
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Stocks
« Reply #5114 on: January 08, 2021, 02:57:53 PM »
I don't see any plausible explanation, I believe current valuation is absolutely insane. I am a big fan of Tesla and it was actually the first stock I bought. The only reasons I haven't sold is because I'm afraid of the tax consequences and since it seems to defy logic, it may very likely keep going up. I wouldn't be surprised now if it hit a $1t market cap
Regarding tax consequences in specific - you are able to donate appreciated stock to charity, and both you and the charity will not pay tax on the gains. Can be great for situations like this. You'd get a receipt for the current value.
Not sure the exact process, but if it's something that you can look into further if you may be interested.
And, if you want to keep the position, you can re-buy in, thus raising your cost basis in the stock (significantly).

Offline Shmulie

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 1529
  • Total likes: 526
  • DansDeals.com Hat Tips 4
  • Gender: Male
    • View Profile
  • Location: Brooklyn
Re: Stocks
« Reply #5115 on: January 08, 2021, 03:00:19 PM »
Regarding tax consequences in specific - you are able to donate appreciated stock to charity, and both you and the charity will not pay tax on the gains. Can be great for situations like this. You'd get a receipt for the current value.
Not sure the exact process, but if it's something that you can look into further if you may be interested.
And, if you want to keep the position, you can re-buy in, thus raising your cost basis in the stock (significantly).

I was actually thinking of doing something like this I'm in the process of transferring my account from Webull to Schwab since Webull has no option to donate stock

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #5116 on: January 09, 2021, 06:42:03 PM »
Agree that donating stock and rebuying in is a good way to up your basis and stay in the game, of that's what you're after. But maybe talk to an accountant to plan it properly. The tax deduction is not a direct offset to the capital gains tax.

Offline zh cohen

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 1501
  • Total likes: 1677
  • DansDeals.com Hat Tips 1
  • Gender: Male
    • View Profile
  • Location: 412
Re: Stocks
« Reply #5117 on: January 09, 2021, 06:45:34 PM »
Regarding tax consequences in specific - you are able to donate appreciated stock to charity, and both you and the charity will not pay tax on the gains. Can be great for situations like this. You'd get a receipt for the current value.

How does this help? Unless you were planning on giving that amount to tzedaka anyway?

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: Stocks
« Reply #5118 on: January 09, 2021, 06:47:05 PM »
How does this help? Unless you were planning on giving that amount to tzedaka anyway?

Donor advised fund. The donation sits in your account and you can give it out little by little as you choose.

Offline stmark

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Jun 2012
  • Posts: 331
  • Total likes: 15
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: New York
Re: Stocks
« Reply #5119 on: January 09, 2021, 06:54:24 PM »
Donor advised fund. The donation sits in your account and you can give it out little by little as you choose.
And the DAF has potential to grow as it is invested. I have found that daf’s through Jewish federations have the lowest fees.