200 shares of SPY bought at 286 - any way to rescue or generate income?

[harryp]

Warren Buffet said once something like the fist rule is to never lose money. Rule #2 is to remember rule #1. Selling now is losing money. That's what's holding me back. Plus I know people I went to school with are making money off stocks that have slipped in their portfolio but they don't share their secrets with me.

I think you are confusing things. The only way to never lose money is buy and hold (since you never take a loss until you get into profit) but then you get hit with Enron, Worldcom, Lehman and what not so what do you do?

The other way (the trading way) is to take a chance. You bet on the odds, you try to maximize your odds, but they are still odds. You adjust, but the adjustment may only improve your odds, it can not give you a guarantee. This implies ... some times, or many a times you take a loss. There can be trading methods where you take loss 80% of the time and still make money. It all depends.

Bottomline:
1. Hold until it becomes profitable. It may take days, years, decades or it may never.
2. Play the odds and learn to take a loss. As long as your learning is good and your odds are accurate, you eventually come out ahead.

Warren Buffet has the advantage that he can talk the market up or down. He has way more cash, connections and clout than you or me. He is a good guy but don't believe all he says. Read about his billion dollar put-write, he invests, but he also trades : with phenomenal odds.

 

[Johnmaine]

He is a good guy but don't believe all he says.

So I believe an anonymous guy on the forum who constantly attacks me and wants to out my IP rather than Warren Buffet?

 

[El OchoCinco]

I have been paying my bills in medical school trading option for a year now, so the only record keeping I do is keep tabs on how much income I generate per month and don't do any record keeping other than this. I suppose I received handsome premium but it was quickly absorbed by my monthly expenses.

You cannot use the premium you collect on an open short option position to pay monthly expenses so how could the premium be quickly absorbed by your bills? This is not possible but no one caught that.

Also you have to ask why would you short puts at the market highs?

First step is not never lose money is admitting when you are wrong and moving on, not getting married to the position.

 

[harryp]

So I believe an anonymous guy on the forum who constantly attacks me and wants to out my IP rather than Warren Buffet?

Since the previous post was on topic, I thought I will chime in. Sorry I replied. I will comment as I feel fit but there is no helping you. Best of luck.

 

[Johnmaine]

Since the previous post was on topic, I thought I will chime in. Sorry I replied. I will comment as I feel fit but there is no helping you. Best of luck.

Source credibility dude. Especially when you are contrasting your advice against Buffett's.

 

[El OchoCinco]

So I believe an anonymous guy on the forum who constantly attacks me and wants to out my IP rather than Warren Buffet?

Warren Buffet would not put his whole portfolio in one position loaded up and hold on to it as it moved against you for months. Nor would leverage 100% of his portfolio for living expenses.

So you have not really studied Warren Buffet.

Sell the position and find a better use for your money or S&P could move a lot lower and then you will wish you got out now. Sell and regret and find next position.

 

[Johnmaine]

You cannot use the premium you collect on an open short option position to pay monthly expenses so how could the premium be quickly absorbed by your bills? This is not possible but no one caught that.

I don't know what you are talking about but I paid for M1 selling puts and rolling them if needed.

 

[El OchoCinco]

Source credibility dude. Especially when you are contrasting your advice against Buffett's.

Buffet would never do what you did...he is smarter than that...

 

[El OchoCinco]

I don't know what you are talking about but I paid for M1 selling puts and rolling them if needed.

You said you don't know how much premium you received from your assigned puts because the premium was used to pay expenses. Also what you did was sell puts monthly in a bull market. You would have made even more money simply going long the S&P index with less risk committing only a % of your account.

If you want advice then think about if you bought 200 shares of SPY last year rather than sell puts.

 

[harryp]

You said you don't know how much premium you received from your assigned puts because the premium was used to pay expenses.

I don’t believe it more than I don’t believe Buffett. A broker statement can give this data and I find it funny given that broker statements are being requested from others but this can not be found. If not for this forum, at least for IRS I hope OP can explain how much money was made at least at a gross level.