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Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
roguewarrior0 wrote: ↑Tue Sep 03, 2024 12:17 pm
Utilizing that very same logic, I’ve determined that not buying and selling even in a play account makes extra sense. So I plan on doing the next:
- Uninstall Monetary Apps from my cellphone and pill. No want for Empower/Constancy/Vanguard/CNBC
- Take away the auto fill for password for my pc for monetary websites
…….
This does not clear up every thing however reduces temptation to tinker.
Kudos to you for taking these necessary steps.
I consider that CNBC is a usually unfavorable affect on society. Going “chilly turkey” and withdrawing from that may be a optimistic step.
Please hold us up to date in your progress.
Greatest to you.
Retired life insurance coverage firm monetary govt who sincerely believes that ”It’s a GREAT day to be alive!”
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- Joined: Tue Sep 08, 2020 8:00 pm
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
Post
by runninginvestor »
roguewarrior0 wrote: ↑Tue Sep 03, 2024 12:17 pm
[snip…]Utilizing that very same logic, I’ve determined that not buying and selling even in a play account makes extra sense. So I plan on doing the next:
- Uninstall Monetary Apps from my cellphone and pill. No want for Empower/Constancy/Vanguard/CNBC
- Take away the auto fill for password for my pc for monetary websites
- I’m going to shut out my NVDA LEAPS as nicely by changing them to Unfold with a $1 hole. I personal 12/18/26 NVDA $65 Calls. So I’ll “Promote to Open” 12/18/26 NVDA $66 Calls to get my money out of them. I alter my danger to $0.50 or $7,000k and I get to defer paying the taxes till April, 2027. I can take the money and make investments it in VTI.
- I’ll hold $300k Money in Brokerage to fund annual spend and can solely must login to rebalance
This does not clear up every thing however reduces temptation to tinker.
Subsequent Step: I’ll promote additional Calls on Monday (9/9/24) or when NVDA is again to $120, whichever is first.
When one of many fairness principals of my previous consulting agency retired, they went radio silent for the primary 12 months. Stated that they had witnessed too many others by no means absolutely retire and ended up having the worst of each worlds. These ppl could not take pleasure in retirement bc ppl saved reaching out randomly, and did not benefit from the work once they did attain bc it was at all times a disaster.
They appeared to take pleasure in retirement greater than the others I knew that semi-retired.
A clear break for no less than a set interval might in all probability aid you too. Totally take pleasure in a few of these positive aspects together with your spouse and children whereas they’re setting off to school and reside within the second with them for a bit. After a blackout interval from at all times interested by investments, it’s possible you’ll discover that your investing urge for food has modified.
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Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
Post
by invest2bfree »
roguewarrior0 wrote: ↑Tue Sep 03, 2024 12:17 pm
FYI, I did a “Purchase to Shut” on my NVDL 9/6/24 $66.5 Requires $0.10. The Name has already captured 90% of worth so I closed them out. I’ll promote additional Calls on Monday (9/9/24) or when NVDA is again to $120, whichever is first.I’ve been performing some interested by what to do after I unwind NVDA. I’ve additionally began studying “Atomic Habits” for some private progress. Paradoxically, it additionally will come in useful for our BH vs Dealer dialogue.
In the end, what many consider will energy is extra a product of atmosphere.
Instance: Whereas there are numerous distinction between a match individual and an chubby individual. Atmosphere performs an outsized function. Match folks sometimes do not have a kitchen or residence filled with cookies, potatoes chips and different junk meals. They have an inclination to have extra wholesome meals round and hold themselves in wholesome environments. Subsequently it does not take a variety of further will energy as they’re much less prone to be put in a scenario to determine if I’m going to eat that donut.
Utilizing that very same logic, I’ve determined that not buying and selling even in a play account makes extra sense. So I plan on doing the next:
- Uninstall Monetary Apps from my cellphone and pill. No want for Empower/Constancy/Vanguard/CNBC
- Take away the auto fill for password for my pc for monetary websites
- I’m going to shut out my NVDA LEAPS as nicely by changing them to Unfold with a $1 hole. I personal 12/18/26 NVDA $65 Calls. So I’ll “Promote to Open” 12/18/26 NVDA $66 Calls to get my money out of them. I alter my danger to $0.50 or $7,000k and I get to defer paying the taxes till April, 2027. I can take the money and make investments it in VTI.
- I’ll hold $300k Money in Brokerage to fund annual spend and can solely must login to rebalance
This does not clear up every thing however reduces temptation to tinker.
Subsequent Step: I’ll promote additional Calls on Monday (9/9/24) or when NVDA is again to $120, whichever is first.
Out of your message Iam undecided whether or not you closed your NVDL place or not?
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
roguewarrior0 wrote: ↑Tue Sep 03, 2024 12:17 pm
FYI, I did a “Purchase to Shut” on my NVDL 9/6/24 $66.5 Requires $0.10. The Name has already captured 90% of worth so I closed them out. I’ll promote additional Calls on Monday (9/9/24) or when NVDA is again to $120, whichever is first.I’ve been performing some interested by what to do after I unwind NVDA. I’ve additionally began studying “Atomic Habits” for some private progress. Paradoxically, it additionally will come in useful for our BH vs Dealer dialogue.
In the end, what many consider will energy is extra a product of atmosphere.
Instance: Whereas there are numerous distinction between a match individual and an chubby individual. Atmosphere performs an outsized function. Match folks sometimes do not have a kitchen or residence filled with cookies, potatoes chips and different junk meals. They have an inclination to have extra wholesome meals round and hold themselves in wholesome environments. Subsequently it does not take a variety of further will energy as they’re much less prone to be put in a scenario to determine if I’m going to eat that donut.
Utilizing that very same logic, I’ve determined that not buying and selling even in a play account makes extra sense. So I plan on doing the next:
- Uninstall Monetary Apps from my cellphone and pill. No want for Empower/Constancy/Vanguard/CNBC
- Take away the auto fill for password for my pc for monetary websites
- I’m going to shut out my NVDA LEAPS as nicely by changing them to Unfold with a $1 hole. I personal 12/18/26 NVDA $65 Calls. So I’ll “Promote to Open” 12/18/26 NVDA $66 Calls to get my money out of them. I alter my danger to $0.50 or $7,000k and I get to defer paying the taxes till April, 2027. I can take the money and make investments it in VTI.
- I’ll hold $300k Money in Brokerage to fund annual spend and can solely must login to rebalance
This does not clear up every thing however reduces temptation to tinker.
Subsequent Step: I’ll promote additional Calls on Monday (9/9/24) or when NVDA is again to $120, whichever is first.
As at all times, thanks for the replace. It’s smart of you to know your self and realized it is best to go chilly turkey. Please hold posting your progress. We’re all rooting in your success.
Since you propose on holding a lot money, are you getting curiosity on that cash? At the moment you will get a max of 5% from that money if held in a cash market fund. Constancy for instance has a money administration account the place you will get nearly 5% and use that account to pay all of your payments identical to a financial institution. Constancy will robotically promote you funds as wanted to pay these payments. It’s a simple technique to get $15k out of your investments. Possibly $15k isn’t a giant deal contemplating the swings you might be used to, however nonetheless $15k will purchase a really good trip some the place.
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
invest2bfree wrote: ↑Tue Sep 03, 2024 2:49 pmroguewarrior0 wrote: ↑Tue Sep 03, 2024 12:17 pm
FYI, I did a “Purchase to Shut” on my NVDL 9/6/24 $66.5 Requires $0.10. The Name has already captured 90% of worth so I closed them out. I’ll promote additional Calls on Monday (9/9/24) or when NVDA is again to $120, whichever is first.I’ve been performing some interested by what to do after I unwind NVDA. I’ve additionally began studying “Atomic Habits” for some private progress. Paradoxically, it additionally will come in useful for our BH vs Dealer dialogue.
In the end, what many consider will energy is extra a product of atmosphere.
Instance: Whereas there are numerous distinction between a match individual and an chubby individual. Atmosphere performs an outsized function. Match folks sometimes do not have a kitchen or residence filled with cookies, potatoes chips and different junk meals. They have an inclination to have extra wholesome meals round and hold themselves in wholesome environments. Subsequently it does not take a variety of further will energy as they’re much less prone to be put in a scenario to determine if I’m going to eat that donut.
Utilizing that very same logic, I’ve determined that not buying and selling even in a play account makes extra sense. So I plan on doing the next:
- Uninstall Monetary Apps from my cellphone and pill. No want for Empower/Constancy/Vanguard/CNBC
- Take away the auto fill for password for my pc for monetary websites
- I’m going to shut out my NVDA LEAPS as nicely by changing them to Unfold with a $1 hole. I personal 12/18/26 NVDA $65 Calls. So I’ll “Promote to Open” 12/18/26 NVDA $66 Calls to get my money out of them. I alter my danger to $0.50 or $7,000k and I get to defer paying the taxes till April, 2027. I can take the money and make investments it in VTI.
- I’ll hold $300k Money in Brokerage to fund annual spend and can solely must login to rebalance
This does not clear up every thing however reduces temptation to tinker.
Subsequent Step: I’ll promote additional Calls on Monday (9/9/24) or when NVDA is again to $120, whichever is first.
Out of your message Iam undecided whether or not you closed your NVDL place or not?
its about 20% nearer by itself to “closed for good” after immediately.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST”
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
The decision premiums would possibly cushion a number of the losses, however looks like the OP may need misplaced some severe $$$. Hopefully they had been in a position to shut out the positions earlier within the day.
“Purchase-and-hold, long-term, all-market-index methods, applied at rock-bottom price, are the surest of all routes to the buildup of wealth” – John C. Bogle
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
OP are you ready to revisit my posts from earlier about having an exit technique if the inventory does not goes down and by no means reaches your name strike? Are you ready to revisit my posts about the way it was outright playing to make this transfer within the first place? About how you did not have any actual danger earlier than this together with your low withdrawal charge and simply needed an excuse to gamble? About how it is best to shut your NVDA and get counseling since your withdawal charge was clearly completely secure?
Or are you going to maintain ignoring these and discover a justification to maintain playing?
41% VTSAX, 35% VTIAX, 4% VSIAX, 20% VSIGX. 80/20 S/B, 57/43 US/INT, 10% of US holdings allotted to small-cap worth. All bonds are US treasuries.
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- Joined: Wed Dec 22, 2021 9:15 am
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – All-In on NVDA
Post
by Scorpion Stare »
bongo wrote: ↑Wed Aug 28, 2024 2:10 pm
Watch out, I do not suppose 2x every day ETFs work like that. Given a particular worth for the underlying NVDA in Dec, you do not know what the worth for NVDL will likely be. The up and down motion and compounding doesn’t assure 2x the efficiency on the unique funding. In truth, there is usually a worth decay when held over lengthy durations of time, irrespective of how the underlying performs.
Yeah, for instance NVDA is up 27% over the previous 6 months however NVDL is up solely 24% over the identical interval.
That’s proper: When held for just some months, the 2x leveraged fund didn’t produce 2x returns. It didn’t even produce 1x returns! I’m astounded that roguewarrior0 tossed 5 million {dollars} into this fund with out understanding the way it works mathematically.
Certainly. Since he has about 100,000 shares of NVDL, the fund is costing roguewarrior0 round $5000 per thirty days (!) in expense ratio alone. And that’s not together with the extra price of worth decay as a consequence of every day rebalancing.
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
You possibly can dump all of it and by no means have a look at the worth of NVDA or NVDL ever once more. That’s in all probability what I’d do. An excessive amount of draw back danger to gamble on a bounce again up.
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
Firemenot wrote: ↑Tue Sep 03, 2024 4:51 pm
Robust name what to do after immediately. You continue to have an important portfolio worth and lots to reside a pleasant retirement. You’re dwelling with a loopy quantity of danger together with your portfolio. As you nicely know, NVDA is extremely unstable and will nicely bounce proper again because it has finished a number of occasions this 12 months. But when it retains falling, and with you being so extremely levered . . . You’ve received a troublesome option to make, in the event you haven’t made it already.You possibly can dump all of it and by no means have a look at the worth of NVDA or NVDL ever once more. That’s in all probability what I’d do. An excessive amount of draw back danger to gamble on a bounce again up.
I am sorry however how is that this a troublesome name? If he had 5M in money proper now and got here to this discussion board would we actually act like “hmm robust name between two choices, put it into index funds or on the 2X leveraged meme inventory ETF”.
As with all issues, by no means bias in the direction of the present state of affairs simply because it is the present state. When folks come right here and ask “what do I do with this land I inherited” the primary query is “in the event you had x {dollars} would you purchase the land”? The identical applies right here. OP has 5-6M {dollars} of capital. There is not any tax concern as a result of he misplaced cash not gained, so he does not want to fret about slowly unwinding to reduce taxes.
The one logical choice is to promote and get right into a extra prudent funding. 2 fund, 3 fund, worth tilt, no matter, these are choices we give folks once they have cash to speculate. We do not throw out “attempt throwing all of it into NVDL” as an choice.
41% VTSAX, 35% VTIAX, 4% VSIAX, 20% VSIGX. 80/20 S/B, 57/43 US/INT, 10% of US holdings allotted to small-cap worth. All bonds are US treasuries.
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – All-In on NVDA
Scorpion Stare wrote: ↑Tue Sep 03, 2024 4:43 pmbongo wrote: ↑Wed Aug 28, 2024 2:10 pm
Watch out, I do not suppose 2x every day ETFs work like that. Given a particular worth for the underlying NVDA in Dec, you do not know what the worth for NVDL will likely be. The up and down motion and compounding doesn’t assure 2x the efficiency on the unique funding. In truth, there is usually a worth decay when held over lengthy durations of time, irrespective of how the underlying performs.Yeah, for instance NVDA is up 27% over the previous 6 months however NVDL is up solely 24% over the identical interval.
That’s proper: When held for just some months, the 2x leveraged fund didn’t produce 2x returns. It didn’t even produce 1x returns! I’m astounded that roguewarrior0 tossed 5 million {dollars} into this fund with out understanding the way it works mathematically.
Certainly. Since he has about 100,000 shares of NVDL, the fund is costing roguewarrior0 round $5000 per thirty days (!) in expense ratio alone. And that’s not together with the extra price of worth decay as a consequence of every day rebalancing.
To be honest, there are durations the place NVDL will do greater than 2x NVDA. It’s path dependent.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST”
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – All-In on NVDA
bgf wrote: ↑Tue Sep 03, 2024 5:12 pmScorpion Stare wrote: ↑Tue Sep 03, 2024 4:43 pmbongo wrote: ↑Wed Aug 28, 2024 2:10 pm
Watch out, I do not suppose 2x every day ETFs work like that. Given a particular worth for the underlying NVDA in Dec, you do not know what the worth for NVDL will likely be. The up and down motion and compounding doesn’t assure 2x the efficiency on the unique funding. In truth, there is usually a worth decay when held over lengthy durations of time, irrespective of how the underlying performs.Yeah, for instance NVDA is up 27% over the previous 6 months however NVDL is up solely 24% over the identical interval.
That’s proper: When held for just some months, the 2x leveraged fund didn’t produce 2x returns. It didn’t even produce 1x returns! I’m astounded that roguewarrior0 tossed 5 million {dollars} into this fund with out understanding the way it works mathematically.
Certainly. Since he has about 100,000 shares of NVDL, the fund is costing roguewarrior0 round $5000 per thirty days (!) in expense ratio alone. And that’s not together with the extra price of worth decay as a consequence of every day rebalancing.
To be honest, there are durations the place NVDL will do greater than 2x NVDA. It’s path dependent.
Probably not. These durations will likely be vastly rarer and shorter because of the drag on the underlying funding and the expense ratio. Over the medium to long run it is assured to return lower than 2X. Over the very long run it is prone to return lower than the underlying funding even when the underlying is up.
41% VTSAX, 35% VTIAX, 4% VSIAX, 20% VSIGX. 80/20 S/B, 57/43 US/INT, 10% of US holdings allotted to small-cap worth. All bonds are US treasuries.
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
cvoege wrote: ↑Tue Sep 03, 2024 5:08 pmFiremenot wrote: ↑Tue Sep 03, 2024 4:51 pm
Robust name what to do after immediately. You continue to have an important portfolio worth and lots to reside a pleasant retirement. You’re dwelling with a loopy quantity of danger together with your portfolio. As you nicely know, NVDA is extremely unstable and will nicely bounce proper again because it has finished a number of occasions this 12 months. But when it retains falling, and with you being so extremely levered . . . You’ve received a troublesome option to make, in the event you haven’t made it already.You possibly can dump all of it and by no means have a look at the worth of NVDA or NVDL ever once more. That’s in all probability what I’d do. An excessive amount of draw back danger to gamble on a bounce again up.
I am sorry however how is that this a troublesome name? If he had 5M in money proper now and got here to this discussion board would we actually act like “hmm robust name between two choices, put it into index funds or on the 2X leveraged meme inventory ETF”.
As with all issues, by no means bias in the direction of the present state of affairs simply because it is the present state. When folks come right here and ask “what do I do with this land I inherited” the primary query is “in the event you had x {dollars} would you purchase the land”? The identical applies right here. OP has 5-6M {dollars} of capital. There is not any tax concern as a result of he misplaced cash not gained, so he does not want to fret about slowly unwinding to reduce taxes.
The one logical choice is to promote and get right into a extra prudent funding. 2 fund, 3 fund, worth tilt, no matter, these are choices we give folks once they have cash to speculate. We do not throw out “attempt throwing all of it into NVDL” as an choice.
I completely agree together with your factors. I used to be coming at it from a psychological standpoint. And he’s married too. He simply noticed nicely over 1,000,000 {dollars} vaporize immediately. And I consider his portfolio is reduce in half now roughly from it’s all-time excessive. A lot with investing is about remorse and remorse minimization. Let’s say he liquidated all of it immediately and a month from now it’s again at all-time-highs. Robust psychology to take care of. (And I notice anchoring to the previous worth is a serious investing sin.)
I can’t deal with all of that. So I simply keep invested in broad index funds and let what occurs, occur.
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Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – NVDA All-In
Post
by aristotelian »
Firemenot wrote: ↑Tue Sep 03, 2024 5:19 pmcvoege wrote: ↑Tue Sep 03, 2024 5:08 pmFiremenot wrote: ↑Tue Sep 03, 2024 4:51 pm
Robust name what to do after immediately. You continue to have an important portfolio worth and lots to reside a pleasant retirement. You’re dwelling with a loopy quantity of danger together with your portfolio. As you nicely know, NVDA is extremely unstable and will nicely bounce proper again because it has finished a number of occasions this 12 months. But when it retains falling, and with you being so extremely levered . . . You’ve received a troublesome option to make, in the event you haven’t made it already.You possibly can dump all of it and by no means have a look at the worth of NVDA or NVDL ever once more. That’s in all probability what I’d do. An excessive amount of draw back danger to gamble on a bounce again up.
I am sorry however how is that this a troublesome name? If he had 5M in money proper now and got here to this discussion board would we actually act like “hmm robust name between two choices, put it into index funds or on the 2X leveraged meme inventory ETF”.
As with all issues, by no means bias in the direction of the present state of affairs simply because it is the present state. When folks come right here and ask “what do I do with this land I inherited” the primary query is “in the event you had x {dollars} would you purchase the land”? The identical applies right here. OP has 5-6M {dollars} of capital. There is not any tax concern as a result of he misplaced cash not gained, so he does not want to fret about slowly unwinding to reduce taxes.
The one logical choice is to promote and get right into a extra prudent funding. 2 fund, 3 fund, worth tilt, no matter, these are choices we give folks once they have cash to speculate. We do not throw out “attempt throwing all of it into NVDL” as an choice.
I completely agree together with your factors. I used to be coming at it from a psychological standpoint. And he’s married too. He simply noticed nicely over 1,000,000 {dollars} vaporize immediately. And I consider his portfolio is reduce in half now roughly from it’s all-time excessive. A lot with investing is about remorse and remorse minimization. Let’s say he liquidated all of it immediately and a month from now it’s again at all-time-highs. Robust psychology to take care of. (And I notice anchoring to the previous worth is a serious investing sin.)
I can’t deal with all of that. So I simply keep invested in broad index funds and let what occurs, occur.
Staying within the funding and seeing it go down one other 20% would even be psychologically robust. The query is whether or not he ought to expose himself to that danger.
Re: Retiring in 6 months (off TSLA options); Plan Review; 08/24 Update – All-In on NVDA
cvoege wrote: ↑Tue Sep 03, 2024 5:18 pmbgf wrote: ↑Tue Sep 03, 2024 5:12 pmScorpion Stare wrote: ↑Tue Sep 03, 2024 4:43 pmbongo wrote: ↑Wed Aug 28, 2024 2:10 pm
Watch out, I do not suppose 2x every day ETFs work like that. Given a particular worth for the underlying NVDA in Dec, you do not know what the worth for NVDL will likely be. The up and down motion and compounding doesn’t assure 2x the efficiency on the unique funding. In truth, there is usually a worth decay when held over lengthy durations of time, irrespective of how the underlying performs.Yeah, for instance NVDA is up 27% over the previous 6 months however NVDL is up solely 24% over the identical interval.
That’s proper: When held for just some months, the 2x leveraged fund didn’t produce 2x returns. It didn’t even produce 1x returns! I’m astounded that roguewarrior0 tossed 5 million {dollars} into this fund with out understanding the way it works mathematically.
Certainly. Since he has about 100,000 shares of NVDL, the fund is costing roguewarrior0 round $5000 per thirty days (!) in expense ratio alone. And that’s not together with the extra price of worth decay as a consequence of every day rebalancing.
To be honest, there are durations the place NVDL will do greater than 2x NVDA. It’s path dependent.
Probably not. These durations will likely be vastly rarer and shorter because of the drag on the underlying funding and the expense ratio. Over the medium to long run it is assured to return lower than 2X. Over the very long run it is prone to return lower than the underlying funding even when the underlying is up.
That’s why I stated “durations.” Any efficient use of those leveraged ETFs must both be traded over quick durations or, if it’s desired to have long run publicity to them, they have to be often rebalanced with different securities.
To say, nonetheless, that the variation from 2x is ONLY to the draw back over durations longer than someday isn’t right.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST”