Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Buehler445]

Originally Posted by Nightfyre

Guys, talk me out of going short Boeing ahead of earnings. I am pretty sure their guidance is going to result in a bloodbath

Can you do a put?

[Buehler445]

Originally Posted by lewdog

Dang, that's good info. I looked up the 30 day T bill on TD and you're right, 2.4. It says taxable though, which is fine.

Interest From a bank is taxable too.

Originally Posted by KCUnited

I'm contemplating changing employers, is there a consensus best strategy for handling an old 401k? If I'm able to and like the investments, is it best to roll it into the new employers plan? If that's not possible, roll it into an IRA? Leave it? I've been contributing to it for 12 years so it's a decent chunk of change.

Talk to your HR first. Sometimes they have specific rules

Even if your 401K isn’t designated as a Roth, it may behoove you to roll it into a Roth.


I haven’t done it, but I THINK you can do it to where they track the basis and then when you take it out the percentage that is the basis is taxable.

If that’s not an option, then it’s still available, you just have to pay the tax (but not the penalty) this year. If you can swing it by getting a sign on bonus or something, you maybe money ahead to eat shit on tax this year, and then have your retirement free and clear. All that shit is above my pay grade.

[Buehler445]

Originally Posted by lewdog

Dang, that's good info. I looked up the 30 day T bill on TD and you're right, 2.4. It says taxable though, which is fine.

Interest From a bank is taxable too.

Originally Posted by KCUnited

I'm contemplating changing employers, is there a consensus best strategy for handling an old 401k? If I'm able to and like the investments, is it best to roll it into the new employers plan? If that's not possible, roll it into an IRA? Leave it? I've been contributing to it for 12 years so it's a decent chunk of change.

Talk to your HR first. Sometimes they have specific rules

Even if your 401K isn’t designated as a Roth, it may behoove you to roll it into a Roth.


I haven’t done it, but I THINK you can do it to where they track the basis and then when you take it out the percentage that is the basis is taxable.

If that’s not an option, then it’s still available, you just have to pay the tax (but not the penalty) this year. If you can swing it by getting a sign on bonus or something, you maybe money ahead to eat shit on tax this year, and then have your retirement free and clear. All that shit is above my pay grade, but look into it. Especially if the new employer doesn’t have a Roth designation for your new 401

[ChiliConCarnage]

Originally Posted by lewdog

Dang, that's good info. I looked up the 30 day T bill on TD and you're right, 2.4. It says taxable though, which is fine.

The interest you earn would be taxed federally but exempt from state/local. Municipal bonds are normally federally exempt from taxes and depending on circumstances possibly state too.

Originally Posted by KCUnited

I'm contemplating changing employers, is there a consensus best strategy for handling an old 401k? If I'm able to and like the investments, is it best to roll it into the new employers plan? If that's not possible, roll it into an IRA? Leave it? I've been contributing to it for 12 years so it's a decent chunk of change.

No, it depends on how good your 401k is.. generally, you'll have more options and maybe better pricing in your own IRA. 401k's are protected from lawsuits and bankruptcy. IRA's each state is different so that's one thing to consider.

[Buehler445]

Originally Posted by Nightfyre

Y'all suck. I am in for Boeing puts at 360. I went full r/wallstreetbets. Send me those good vibes.

Originally Posted by Buehler445

Can you do a put?

D’OH.

Shits rolling. I’m a little slow on the uptake

[Discuss Thrower]

Originally Posted by Discuss Thrower

RAD finna blast off to the Moon any day now, folks.

Seriously people you're gonna want to get in on this.

[Munson]

Originally Posted by Discuss Thrower

Seriously people you're gonna want to get in on this.

RAD just went through a reverse split so they wouldn't be delisted on the NYSE, and they're down 10% today.

I think the only way it skyrockets is if they get bought out.

[Munson]

Originally Posted by Nightfyre

Y'all suck. I am in for Boeing puts at 360. I went full r/wallstreetbets. Send me those good vibes.

I'm still trying to understand how options work, so let me ask this:

Let's say I buy 1 put contract today at $X amount of dollars, at a strike price of $360 for 4/26/19. And on that day, let's say the stock price ends up at $370.


Would I only lose the amount I invested ($X), or would I lose more than that?

Would I be forced to buy the 100 shares since my bet went the wrong way?

[Munson]

Originally Posted by Discuss Thrower

A long put has positive economic value where the Strike Price is lower than the Underlying Market Price.

For example, if underlying market price is $370, you can exercise the put option and sell the underlying security at the strike price ($360). You can immediately buy it back on the market for $370, realizing a profit of $370 – $360 = 10 per share, or $1,000 per option contract. With initial cost of $X, total result of the trade is $1000 – X= $???? profit.

Ok, now I'm more confused. I thought if you buy a put, the only way to make money is if the current price of the stock is lower than the strike price.

[RunKC]

Originally Posted by Discuss Thrower

Seriously people you're gonna want to get in on this.

Wow good call. Up over 1,000% yesterday.

How did you know?

[Discuss Thrower]

Originally Posted by Munson

Ok, now I'm more confused. I thought if you buy a put, the only way to make money is if the current price of the stock is lower than the strike price.

Disregard what I said.

Use This as a test to get an idea of what your puts are worth.

That blurb I copy, pasted and edited from here which has a much more clear guide to determining what your puts are worth in building a quick model in Excel.

A put has worth if its strike is higher than the underlying if you are long that put. If you're short the put or have leveraged up you could have a bad time.

[Nightfyre]

Originally Posted by Munson

I'm still trying to understand how options work, so let me ask this:

Let's say I buy 1 put contract today at $X amount of dollars, at a strike price of $360 for 4/26/19. And on that day, let's say the stock price ends up at $370.


Would I only lose the amount I invested ($X), or would I lose more than that?

Would I be forced to buy the 100 shares since my bet went the wrong way?

You would be out the cost of the contracts. So I buy 20 BA puts with a strike of 360 for 2.77, I am in for 20x100x2.77 or 5,540. if the stock doesn't go below the strike, I am out that cost. If it goes to 350, I have the right to sell 20x100 shares of BA at 360. Which would net 20x100x(360-350) or 20000 minus 5,540. I would likely sell the options to close the position rather than exercise them, however.

[eDave]

Originally Posted by Buehler445

The ****? What bank?

Check out online savings accounts. I got a bunch in various accounts making right at that. Not sure if that beats inflation. Don't care. It's cuts into it at least when you want liquidity with a portion of your financial inventory.

[Nightfyre]

The more I try, the less I think I understand the market. Oh well. Haha

[ChiliConCarnage]

Originally Posted by Nightfyre

The more I try, the less I think I understand the market. Oh well. Haha

I saw they pulled guidance and cut the buyback and it was up a bit. Maybe the 3 billion in estimated costs for paying off families and airlines for damages was less than the market was expecting. dunno

Thermo Fisher beat top and bottom estimates and made a small raise to 2019 fiscal guidance and it's down 1%+ too

200+ earnings reports today and tomorrow. Looking for Visa, Lam, and Paypal this afternoon. Not sure if I want to trim my PYPL position before close or not. Probably won't.