• Do you invest your tax return money?

    9 answers · 2 days ago
  • If I own a stock but is going down and losing money, what option can I pick that is better to counter my loss, Selling calls or buying puts?

    Best answer: If you think implied volatility is too high it is usually better to sell options than buy them, so you would normally be considered the better choice. If you think implied volatility is too low it is usually better t buy options than sell them, so buying puts woul normally e considered the better choice. If you... show more
    Best answer: If you think implied volatility is too high it is usually better to sell options than buy them, so you would normally be considered the better choice. If you think implied volatility is too low it is usually better t buy options than sell them, so buying puts woul normally e considered the better choice. If you think implied volatility is about right, or if you do not know what implied volatility is, probably neith choice is particularly good.

    Neither choice counters the(unrealized loss you already have experienced. That is history and you cannot change history. The fact that the stock has already dropped means that you will probably pay more if you buy puts and receive less if you sell calls.

    If you buy puts, and the number you buy is equivalent to the number of shares you own, you are guaranteeing that the amount of money you get when you sell the shares will be less than the amount you would get if you simply sold the shares. However, it strictly limits the amount of money you can lose if the price of the stock drops prior to expiration of the options.

    Selling covered calls on the stock offers less protection if the price of the stock drops sharply, and limits the maximum amount you can make if the price of the stock goes up sharply prior to expiration of the options.

    I shoud mention that there are other strategies than simply selling calls or buying puts. You can do both to form a collar. There is even a "stock repair strategy." I am not a fan of the stock repair strategy, I will give you a link to it.

    http://www.cboe.com/strategies/advanced/...

    Finally, to directly answer the question you asked, since buying puts does nothing to counter the existing loss, selling calls is better to counter your current loss. That is not a recommendation just the answer to your question. My recommendation would be to look at the reasons you bought the stock. If the reasons still exist do nothing. If the reasons do not still exist, simply sell the stock.
    7 answers · 3 days ago
  • Why is it not allowed to use a SDIRA to buy real estate for retirement? Can I convert my Roth IRA to a SDIRA?

    Best answer: First question. It is not disallowed. You may buy real property in a self-directed IRA. However, there are specific rules that must be followed, and if you don't do everything correctly, you can have your IRA disqualified and everything in it becomes taxable. That would be a disaster. It is often not a good... show more
    Best answer: First question. It is not disallowed. You may buy real property in a self-directed IRA. However, there are specific rules that must be followed, and if you don't do everything correctly, you can have your IRA disqualified and everything in it becomes taxable. That would be a disaster.

    It is often not a good idea to invest in real property inside an IRA. The three primary benefits of owning rental property are leveraging other peoples' money to own it (aka borrowing), depreciation, and taking rental losses against regular income on your personal tax return. You can't do any of those things inside an IRA.

    You must pay cash with what you have inside the IRA. You must pay all expenses of owning that property out of assets inside the IRA. If you should be hit with a major expense to repair or maintain the property, or pay taxes, whatever it is, and you don't have enough cash inside the IRA, you have a BIG problem. You cannot use the property inside the IRA for personal use. At all. If you bought a vacation property to rent out, you cannot use it yourself, AT ALL. If the property needs any work, YOU cannot do ANY of the work yourself, AT ALL. You must hire it done.

    If all this isn't enough to convince you that it's not a good idea, you can do it, if you do it correctly. You would want a professional to guide you every step of the way.

    Second question. Yes, you can convert a Roth IRA to a traditional IRA, which are both, if they are not administered through employment, self-directed. There are very limited situations where doing this makes sense. Another thing you need professional guidance with.
    3 answers · 3 days ago
  • It is legal to buy a stock one day and sell it the next day and repeat?

    Like buy 2 shares of Apple today, sell it tomorrow, and then rebuy it the next day, and then sell it again?
    Like buy 2 shares of Apple today, sell it tomorrow, and then rebuy it the next day, and then sell it again?
    18 answers · 4 days ago
  • You know how you get "sale proceeds" when you short a stock....?

    Best answer: You are not allowed to do Short sell if your trade account is either not a margin account or you have Zero cash ( not enough to cover the risk from Short sell) even you have 100K value of stock. Because, as the stock you Shorted, price goes up from your Short Sell price at the end of a trade day, the difference... show more
    Best answer: You are not allowed to do Short sell if your trade account is either not a margin account or you have Zero cash ( not enough to cover the risk from Short sell) even you have 100K value of stock. Because, as the stock you Shorted, price goes up from your Short Sell price at the end of a trade day, the difference in Cash from the total Short sell stocks value shall be taken out directly from your trade account at the same day by bank to cover the loss. And of course, as the stock price goes down even more than the Short sell price, bank deposits the difference in Cash into your account.
    Support you own a margin account has worth of 100K stocks and zero cash. As the Short sell 10K price goes up into 11K on that closing day, bank takes out 1K from your margin account at the end of same day. The margin interest pay start counting day one with 1K borrowing.
    5 answers · 7 hours ago
  • How can I turn $30,000 into $2 million within 1-2 years legally?

    Where can I invest to do such a way? Cryptocurrency or other ways?
    Where can I invest to do such a way? Cryptocurrency or other ways?
    12 answers · 6 days ago
  • Why do so many people invest in real estate when money goes further in stocks(and you don't have to deal with tenants and repairs in stocks)?

    Best answer: You have a chance to make improvements to your properties to improve its value (it is in your own control), but you have no control over the companies whose stock you invest in. Properties may also have some depreciation/deductions you may use to your benefit. Also, stock may drop all the way to zero, but real... show more
    Best answer: You have a chance to make improvements to your properties to improve its value (it is in your own control), but you have no control over the companies whose stock you invest in. Properties may also have some depreciation/deductions you may use to your benefit. Also, stock may drop all the way to zero, but real estate doesn't. Land will always have some value. Wealthy people often have some amount of each.
    5 answers · 4 days ago
  • Would this be illegal?

    Let's pretend I'm a famous rapper with millions of followers on social media like lil Wayne or whoever and I buy 200k $ worth of stock in coke. And I tweet out telling people to buy Coke stock or do an ad or whatever and sell my shares. Would I get locked up cause I know 50 cent did something similar and... show more
    Let's pretend I'm a famous rapper with millions of followers on social media like lil Wayne or whoever and I buy 200k $ worth of stock in coke. And I tweet out telling people to buy Coke stock or do an ad or whatever and sell my shares. Would I get locked up cause I know 50 cent did something similar and he's free although bankrupt but by no means broke
    6 answers · 4 days ago
  • Is it possible to make $30 Million dollars a year??? If soo how???

    Best answer: Not only is it possible, but there are many people who make that much in a single day, let alone an entire year. Last year alone, for example, Warren Buffet made $14 billion. On an average year, Gates brings in $11 billion... and he's technically retired. So how do people make that much? Generally they do... show more
    Best answer: Not only is it possible, but there are many people who make that much in a single day, let alone an entire year. Last year alone, for example, Warren Buffet made $14 billion. On an average year, Gates brings in $11 billion... and he's technically retired.


    So how do people make that much? Generally they do it by either being born into an incredibly wealthy family (aka. the Waltons who own Wamart), or they own stock in massively successful businesses (aka. Bill Gates), or they head massively successful companies (aka. Kim Kardashian).

    The most likely route for a person to take is the 'Kim Kardashian' route, where you create an incredibly successful market through enormous marketing of yourself... aka. You turn your own image and name into a brand. You should keep in mind though that regardless of what you might think of people like the Kardashians, they're actually fairly brilliant at self-marketing and work incredibly hard. So it's not like that wealth comes easy, but it does come.
    9 answers · 1 week ago
  • Will the price of silver increase if President Trump starts a nuclear war?

    Best answer: The price of everything will go up in a nuclear war. However, depending on the severity of it, precious metals and other "precious" things will probably become less and less valuable relative to other things (you can't eat silver and it's not that useful for making tools). Things like salt and... show more
    Best answer: The price of everything will go up in a nuclear war. However, depending on the severity of it, precious metals and other "precious" things will probably become less and less valuable relative to other things (you can't eat silver and it's not that useful for making tools). Things like salt and sugar will become currency again. Salt was the world's original form of currency and if we return to the dark ages it will again (because it is actually useful and hard to get from nature). Sugar will also become a major form of currency simply because people like it and it will also be hard to get (and you need sugar to make alcohol which will also be in high demand).
    7 answers · 6 days ago
  • How stock exchange detect and apprehend insider trading ?

    The directors/staff who knows the company numbers may ask a family member to buy or sell. This cannot be detected easily and accounts maybe private.
    The directors/staff who knows the company numbers may ask a family member to buy or sell. This cannot be detected easily and accounts maybe private.
    5 answers · 5 days ago
  • Cancel a stock purchase?

    6 answers · 7 days ago
  • Can a stock purchase be annulled?

    6 answers · 7 days ago