Not wrong at all. If he comes in here more often he can save on those financial planner fees
my madman is 3+x it wasn’t a small money either.
investing is pursuit of making money, using money. trading is also investing.
What’s the size of your stock portfolio?
I can maybe tell in person, but mad man was not small
Not small meaning how big?
Not telling This is similar to your 9x where basis is unknown, it doesn’t tell much , intentionally.
I don’t have a basis…
The difference is holding time
GAD (generally accepted definition)
Less than 1 year = Trading
So holding LEAPS for long term capital gain can be considered as investing
My guess is $100k < not small < $1M.
Before or after 3+x?
after. not many traders dare to trade more than $1M especially in options. Having said that, I’m aware of a trader that trade up to $20M. Between 2002 to 2008, from a few thousand dollars to $20M trading AAPL calls/LEAPS.
That’s one of the irrationalities people have. We all should look at from percentage standpoint not absolute size.
When your total option portfolio past $1M then tell us. Few years ago, my option portfolio went from $75k (initial capital) to $900k+, start to scare, pull out about 50% to buy Austin SFH, recently pull out some more. So not much capital again. Holding so much $ in instruments that is so volatile and can evaporate (expiry date) is pretty scary. Didn’t you read tomato writing during the down days, scared…
Ignorance is bliss when it comes to options.
Mine is pretty far off so not losing sleep over it. I just bought one BABA call couple days back. Will add more next week.
I did lose sleep one day But wouldn’t last long, it rose too fast, could go down too fast.
My diversification would be into real estate like hanera@, and some active business for cash flow. Too much greed, though, is the root of all evil.
Normal Daily fluctuation may be between 3% to 6% level. When holding a Million means that person can see the stocks value drop or go up by 30k to 60k level in a day. When it drops 60k level, the holder must be seasoned to see the fluctuation normal. Higher the money, tougher to control emotion.
if you are holding a million and drops 6%, it’s 60K. IF it’s options, it could be 500k that takes more endurance
Not enough greed, though, is the root of all mediocrity.
That is why I hate options as they have time dimensions !