Yeah those rates are such that margin investing does not leave enough margin for downside/risk “at this point of time”.
To all gloom and doom liberals.
The Enlightenment is working. Things are getting better.
Patience is a virtue, but life will never 100% fair
IB might be cheaper.
effective interest rate for 1M USD: 2.47%
Why can IB offer such low rate? Do they offer Heloc at the same low rate?
LIBOR is 1.7. So IB is profitting 0.8% from that.
Just bought an options book from amazon. Damn it’s humongous. Joining @hanera on the dark side.
Options are hard for me (very volatile) as they add another time dimension! In 2015, I gained $10000 (single win) and lost $10000 (multiple loss) in options. That was the end of my options !!
Give up so easily? Option trading should be easy for engineers and mathematicians, probably too hard for business administration and marketing majors😀
If you have a large portfolio, you can actually take mortgage from your own, if you will
Give up so easily? ==> It creates tension,mentally active, watching, predicting…etc…sleepless.
I want to enjoy my time, instead of spending on this active management, take a back seat and relax on investing.
If I consistently make 10% ROI on investment, that is enough, anything more than 10% is a bonus to me.
I don’t want to use Heloc to buy stocks, nor use margin to buy houses. I just simply want to get Heloc and buy houses. Why can’t the Heloc lender learn from IB and use low rate to get more business?
Right. Taking care of one’s psychology is the most important thing.
The issue is i think risk. With margin call, they limit their down side. For Heloc/mortgage, they have to go through foreclosure and so on which is painful.
Risk. IB can liquidate your stocks to repay the loan. HELOC requires expensive foreclosure process then reselling the home.
Which book? I haven’t seen many good ones on options. There are academic ones that cover pricing models, but that doesn’t tell you how to trade. Trading requires rules about when to cut a loser and how to handle a winner.
Options as a Strategic Investment: Fifth Edition
Huge book, almost 1000 pages. People say it’s good. I will read it and tell you guys.
I recommend this book long ago😀 Very comprehensive and include possible follow up if favorable or unfavorable. Is sitting on my computer table, refer to it now and then. You should also get a book on implied volatility😂
If you think volatility ala VIX is too high and should come down, doesn’t it imply that options on all kinds of stocks are too expensive? Seems now it’s better to sell options rather than buy?
Just sharing a story
Me. I am a buy and hold for a long time. I was actually wanting to buy.
Somebody should tell the idiot in the white house everything is fine, that he should go to school to learn, like the Dreamers, some education so the American people can understand his mumbling jumbling.
Listen to the idiot: