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    Daily General Discussion and spitballin thread - September 12, 2021 Investing

    Daily General Discussion and spitballin thread - September 12, 2021 Investing


    Daily General Discussion and spitballin thread - September 12, 2021

    Posted: 12 Sep 2021 02:02 AM PDT

    Have a general question? Want to offer some commentary on markets? Maybe you would just like to throw out a neat fact that doesn't warrant a self post? Feel free to post here!

    This thread is for:

    • General questions
    • Your personal commentary on markets
    • Opinion gathering on a given stock
    • Non advice beginner questions

    Keep in mind that this subreddit, and this thread, is not an appropriate venue for questions that should be directed towards your broker's customer support or google.

    If you would like to ask a question about your personal situation or if you are asking for advice please keep these posts in the daily advice thread as that thread is more well suited for those questions.

    Any posts that should be comments in this thread will likely be removed.

    submitted by /u/AutoModerator
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    Daily Advice Thread - All basic help or advice questions must be posted here. September 12, 2021

    Posted: 12 Sep 2021 02:01 AM PDT

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:

    • How old are you? What country do you live in?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (Buy a house? Retirement savings?)
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?)
    • Any big debts (include interest rate) or expenses?
    • And any other relevant financial information will be useful to give you a proper answer.

    Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq And our side bar also has useful resources.

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
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    What would happen if I bought a call and a put of the same stock?

    Posted: 11 Sep 2021 08:40 AM PDT

    What would happen if I bought a call and a put of the same stock? Let's say I buy SPY, and I buy a call and a put of it for the same expiration date, obviously, one of them will make money, but as for the other one, will I just break even and have made no profit? Or is this a less risky way to buy options. I can't think of the math on this so I was just wondering if this is a real strategy that people do?

    submitted by /u/0liv5r
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    Is my FIL getting scammed?

    Posted: 11 Sep 2021 04:59 PM PDT

    My FIL got some TD AmeriTrade guy investing some of his money who was recommended by a a golf buddy (always a great sign) He told me he's getting 8-9% returns on Bank of Montreal Bonds. He showed me the statements and I just can't wrap my head around how he's getting these. The broker told him they're "low risk" but this isn't adding up to me. I'm no investing guru but I manage my retirement accounts and know enough to keep me in decent shape. Are these super risky investments?

    Bank of Montreal Note M/W MTHLY CLBL INDEX LNKED 9.81%

    Citigrp global mkts hldgs inc Note M/W MTHLY CLBL INDEX LNKED 9.5%

    submitted by /u/Bleachd
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    Target fund retirement accounts?

    Posted: 11 Sep 2021 04:51 PM PDT

    A couple things, I'm still a what are you doing away (33 now) from retirement So right now I have my 401(k) from work through Transamerica and I am invested in a total stock fund through Vanguard on the site that is all stocks so being a little bit more aggressive which is helped me out over the last few years because the market has been so hot. I've been thinking a bit about retirement this week and just for shits and giggles I went on and looked at the different allocation options I have to the fund and looked at the target date retirement fund for 2025 and on the breakdown of it and noticed that it is 50% stocks (32% US, 18% international), 37% cash, 5% bonds and 8% other…

    1. The stock allocation seemed a bit high, but the more alarming part was I always thought the bond allocation would be closer to what the cash allocation is? Is this kinda the rule of thumb/is there one and does the % keep swaying in the cash direction a few % points the older you get? Basically wondering what the standard is with this at/close to retirement then through the remainder of retirement.

    2. Transamerica Lifegoal 2025 with Blackrock Ret Acct is the one I looked at, they have a different one for every 5 year increment until 2026…what happens with the people who are in this (2025) one when 2025 passes and it drops off the list of available allocations on the Transamerica website? Does it grandfather in or something even if it's not there until you go in and change it to something new (if that's something you want to do)?

    submitted by /u/DoeJumars
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    Options straddling earning reports, is it worth it?

    Posted: 11 Sep 2021 11:44 AM PDT

    I came across a post hours ago about options straddle, where you buy a put and call +-XX amount netting a profit if the value of the underlying goes beyond the +-XX.

    My question is with the same principles wouldn't it be high win situation with less risk for this option trading strategy to be used on earning reports?

    The substantial +- that occurs from quarterly reports deviates from a range of +-5-30%, let's take $AMZN $AFRM $LULU $TIGR, from the quarterly report the company faced massive change in share value, some going crazy up and crazy down.

    Would you net profit when straddling on such events? The risk reward ratio seems fairly low considering the insane volume that occurs before an ER.

    What are your thoughts on straddling on ERs? Say a mega cap stock is trading at $100 and I get 10x 98$ puts and 10x 102$ calls with IV of say 30-50%? Potentially get these calls/puts a month out in case the stock reverses back in the coming weeks?

    submitted by /u/ZiRoRi
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    What is the best way to build a portfolio?

    Posted: 12 Sep 2021 03:59 AM PDT

    So I have a pick of around 15 etfs/stocks combined, and I wish to invest $100 a week.

    Basically I want to dollar cost average.

    I like to choose a particular stock/etf every monday when I invest.

    Now how do I know which stock to buy that day?

    Do I buy the dip aka the one that is on the decline?

    Or do i buy the asset performing well?

    OR do I just spread my $100 across all my assets every week, spreading the risk?

    submitted by /u/musicvita25
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    Union pension fund. What to do with it.

    Posted: 11 Sep 2021 03:52 PM PDT

    I have approx 60 grand available to take out of my union pension fund. I am no longer working for the union. Im 30 years old have started a different career with a separate pension. What are my options when taking it.Is there a way I would be able to use that money to purchase my first house. I am in Ontario Canada would it be smarter to leave it in the union fund at 100 grand or take the hit and take the 60 and invest it myself.

    submitted by /u/oh-yanojoe
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    Rising sentiment for Russian equities

    Posted: 11 Sep 2021 12:27 AM PDT

    I've been seeing a lot of bullish articles regarding Russian equities, even though—and let's get this out of the way immediately—obvious geopolitical and corruption risks remain.

    Reuters: Russian stocks to climb higher throughout 2022

    Russian stocks have been on the rise after collapsing in the first quarter of 2020 when the COVID-19 outbreak became global, gaining support from a recovery in oil prices, an easing risk of sanctions and an influx of retail investors.

    In addition to oil prices, a growing market of retail investors in Russia seems to be significant. We've all seen how much retail investors can affect the market these days.

    Not to mention, the construction of the Nord Stream 2 pipeline finished the other day, but flows haven't started.

    WSJ: More Russian Companies Set to Join New York IPO Frenzy

    "The environment is quite conducive right now," Viktor Szabo, an investment director at Aberdeen Standard Investments in London. "Growth has been stable and tensions with the U.S. appear to have eased."

    Geopolitics is another key factor contributing to the Russian IPO renaissance. Though relations between the U.S. and Russia remain near their lowest since the Cold War, the summit in June between President Biden and his Russian counterpart, Vladimir Putin alleviated some market concerns about tough new sanctions, investors say.

    Although geopolitical concerns should never be nonexistent with Russia, it seems they are at their lowest in years. If you pay attention to geopolitics news, you may have also noticed a rising popularity in geopolitical papers for the idea that the US should court Russia in order to counter China.

    Financial Times has also run articles about Russia's "market boom" and IPO spree as well as the bullish sentiment on Russia's massive agriculture industry:

    Investors have also noticed, attracted by the longer-term potential. Jim Rogers, who co-founded Quantum Fund with George Soros and is now a renowned bull on Russia and China, has invested in Russian fertilisers and agriculture via Phosagro and believes the sector's success is only starting.

    Also relevant is news that Russia's Sberbank is undertaking a push to become Russia's Amazon.

    iShares Russia ETF $ERUS is up 24% YTD while VanEck Russia ETF $RSX is up 23.44%. They have dividend yields of 4.12% and 2.72%, respectively.

    I had looked into these ETFs a couple years ago and wish that I had gotten in sooner.

    Gazprom is usually only available OTC for retail investors, but Yandex $YNDX is listed on American exchanges and is actually included in a number of ETFs involving technology like self-driving cars. Russian equities are not as far fetched as you may think.

    What are your thoughts on this news and have you taken an interest in Russian equities at all?

    submitted by /u/AristotleKarataev
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