I don't have a ton of patience to profile stalk but my curiosity got me to find out he lives in the upper East side in a penthouse, claims he grew up poor, is in the "top 1%," and he is a single man that has a healthy obsession with working out and his cat.
Which all really tracks with forgetting about a $50k put, nearly the median family income in the US.
People finds out "poor" or "wealthy" are subjective terms. For some, being "poor" is not being able to afford to eat, while for some others, is having do your own groceries.
For some, being "wealthy" means owning a house, for some others owning a private jet.
I wonder how often it's legitimately true versus it being a case of a very wealthy adult just no longer having a concept of what poor really is. Compared to their life -now-, a decent middle class upbringing might as well have been on-the-streets poor.
Vast majority I'd say. "Poor" to these people means having a day job and cleaning your own house. Most have never known a bank account with less than 6months of expenses and a job with 401k matching.
It was more that every post I see wealthy people in WSB casts doubts. There's so many rich people here, and they interact with money in many different ways
I’m sure they exist but every person I’ve ever met who said this and wasn’t currently poor was lying through their teeth, upper middle class or above every time
"It's historically cheap to hedge - vol is cheap, interest rates are high, valuations are stretched relative to historical norms, etc...
I don't really feel like constantly checking headlines during the next administration to navigate turbulence, so i'm just gonna grab this - ignore news headlines & relax."
Then just went back to playing with my cats and ignoring politics for a few months - and here we are.
You'd need at least 2 million, and a very strong belief we were going to face this level of volatility, for this to ever make sense. Alternatively, if you have like a 5 million portfolio, it could be part of a viable hedging strategy.
Buffet has been accumulating cash for years. He even rode out the 22 crash without buying much. This rapid, but meaningless pullback to october prices is not why buffet is holding cash. If he thinks businesses are fairly valued now, he'd have bought in october, and if he thinks they'' be fairly valued after a further 30% drop, hed have bought early 23.
Buffett running trillions in cash isn't really applicable to an individual investor unless you literally hold BRK. He's hedging risk in a trillion dollar company and taking the historically high interest rates on cash instead. Doing so has, as you pointed out, missed between 50-150% market returns since 2020. Which is a pretty big bummer for the average investor, unless you think we're entering the Great Depression
Well, wasn't that hard when the new administration only talked about economic turbulence during his campaign. Hoping that he was joking was such a strong hopium hit for a lot people though.
For the past month I literally have had bloomberg, and webull tickers pulled up on my desktop and robinhood open on my phone from bell to bell working my positions and trying to get my account whole again.
I lost 2500 bucks over the last month and made it all back and then some yesterday cause I just have made all the wrong choices until the obvious play came up.
But tbh I enjoy it, it's just my current hyperfixation until I find the next one.
I don’t usually tell people what to do with their money, but you should probably tell your assistant to tell your butler to move the cash to your vault.
You joke but Richard Harris, the actor that played the og Dumbledore, was gifted a Rolls Royce and forgot about it after he went drinking. source 1 from his obituary in the telegraph
I have a recurring dream where I buy a bunch of high value classic project cars from junk yards, but can’t remember where to go pick them up, how many I bought or which ones I bought. I keep trying to bring them back to my open lot garage, but I never round them all up. It’s stressful as fuck. I wake up fucking furious for no fucking reason.
I think what upsets me the most about this, is the impact to society as a whole, there is an entire generation of "we got ours" who forgot to communicate the value of supporting the next generation. As a result this new generation has no idea how to navigate this dynamic and unregulated financial world that has been created. Someone went and got a degree in education, and made less money for a years worth of work than this person did with a click of a button and playing with their cats for 6 months. The problem isn't that "life's not fair" it's that life has gotten so unfair that we've lost the capability to function as a society, and no longer can financially provide for people doing critical tasks to sustain the next generation of individuals
He probably didn't, but it's literally why options were invented. If he hedged a bunch of long positions then he doesn't need to worry too much about which direction the market is moving day to day.
Hello, im a Nigerian prince, i have millions of Dollars in my bank Account, sadly its locked and can only be reactivated If I pay 50k$. If you sende them to me, i'll return you 100k$.
SPX is roughly 10 times the size of SPY so 6,250 was in the money, but not deep deep ITM when I bought it.
As for the tenors, divided it between the two - as the SPY options would be categorized as long-term capital gains if held to expiry (1 yr). But at 9-months out cash-settled SPX options would be given preferential 60/40% tax treatment over 100% short-term gains.
Can't remember why I chose that strike price - I think I just looked at the vol surface and bought the cheapest implied vol 9-12 months out? Just remember the index having fairly high skew.
Oh, I misread the chart, no idea why. Right, 605 was ATM. The 6250 was ITM - lower IV but higher price. Think what happens in the extreme - if a ticker is trading at 10 and you buy a 1000P, you're basically lending the seller 990 (the uncertainty is more negligible). The interest on that loan is in the option's price. If you model just the interest rate (f.e. by looking at the 6250-6050 spread) it's not bad - over 10% I think?
You linked a box spread, which is risk-free. In my extreme example - for example buying a 900-1000 spread when the underlying is below 100. It's not risk-free because if the underlying went to 900+ you dont get the loan back :)
Such a spread will have a price similar to a loan, but with higher rate than the risk-free rate
•
u/VisualMod GPT-REEEE 21h ago
Join WSB Discord