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I don't plan for the S&P 500 to go to zero. It diversifies away single-stock risk, and the S&P has never gone to zero in its decades-long history.

Does than don't put more than 2% in a passive S&P buy and hold index fund? Or can something like that comprise more than 2%.

Thanks, Dave. How does buying deep in the money calls increase leverage? I'm guessing it is something like this: The current price is 2.00 per call option. But when it is deep in the money, the price of the call option tracks the price movement of the stock linearly or near-linearly. So if...

Hello, Is it standard practice to deploy new capital in stages? I'm looking to significantly increase my S&P 500 position as well as some select ETFs. Under normal circumstances, it seems like staging the deployment over time would make sense. That way you don't accidentally do all of your...

Thanks! That is a good point about the bid/ask spreads. I'll try to stay away from market open. That hour is probably too much for me to handle anyway. I like calmness :-)

Hello, I've been investing in the S&P 500 etfs. I know they track the underlying assets closely. In fact, during the day, if the S&P goes up by 0.3%, the etf will do essentially the exact same thing, almost instantaneously. That makes me very comfortable :D. I am interested in some sector...

China is doing some interesting stuff with 3d printing... they print the concrete walls: Housing costs are significantly pressuring a lot of people. Low-cost substitutes are a good development.

Sorry... I just realized there is a forum category named Trading Software... would have been better to place this post over there.

Thanks for the clarification!

Hello, I saw Zacks has $3 trades, which is great. However, I looked at their interfaces (desktop and web). They look *extremely* similar to Interactive Brokers' interfaces. Are they using the same stuff? That would be somewhat odd.

As a side note, how does one learn this stuff you are talking about? Is there a good book out there I can read on this? This looks very technical. I read a book on options. It was useful, but basic (how a call/put works, what a covered call is, etc.). The stuff you are talking about here is...

Thanks! How does the options computer "know" to charge more for an index's downside protection? I thought the price of a put/call was almost purely a function of how far away the put/call is from the stock's current selling price, and how much time until expiration.

Hello, I noticed something interesting: it costs way more to insure the s&p 500 in June compared to Microsoft or the QQQ tech etf. I looked at the +/- 10% collars for June: IVV (S&P 500): sell 310 June call at .30, .50 bid/ask currently trading at 282 buy 250 June call at 1.75, 2.35 bid/ask...

Great points! Spoke with an accountant today. I love accountants. Money well spent.

Thanks, Robert. This is a great point. What does "Qualified Dividend Income (QDI) is forfeited while the put is in place." mean? I talked to a brokerage and an accountant. Nobody has seemed to have heard of this. The brokerage says they still pay out a dividend whether a stock has a put or...

Hello, I ran two types of tax circumstances: case 1: start with 1000 earn 10% return pay 15% capital gains tax at end of year keep doing this for five years case 2: start with 1000 earn 10% annual return, but don't sell each year after five years, pay the 15% capital gains tax I thought case...

great point. thanks.

Found this link: http://www.cpapracticeadvisor.com/news/12370552/2018-irs-income-tax-refund-chart-when-will-i-get-my-tax-refund It looks like: you get your refund within 21 days if you file electronically paper filing can make the refund take longer you typically can send in your returns near...

Hello, I was hoping Elite Trader could create a new forum category: portfolio management. It could deal with topics like: how much of your portfolio to put in large caps vs. small caps. how much to put in safe securities like cash is gold a good idea or not portfolio rebalancing funds vs...

Hello, I just realized I overpaid my q4 taxes by a meaningful amount. I usually overpay by a bit each quarter to make sure I am paying in good faith. But this one was an accounting "oops".:wtf: I want to file my taxes early this year anyway, because I am going to have a hectic spring. I'm...