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    Sunday, February 6, 2022

    What's the catch with selling covered calls and cash secured puts? Investing

    What's the catch with selling covered calls and cash secured puts? Investing


    What's the catch with selling covered calls and cash secured puts?

    Posted: 06 Feb 2022 03:55 PM PST

    Numerous redditors as well as as countless scores of youtube videos tout the "safe" successes of these two options strategies. Apparently all these folks are reaping steady, albeit small, cash flow with little risk, as long as they are selecting strike prices at which "they'd be happy to sell/buy the underlying shares."

    The question is, if it's really this easy, why isn't everyone doing it? I generally don't trust anything I see on Youtube but I can't see any glaringly wrong information presented in these videos.

    I guess one thing I thought of is the opportunity cost on cash secured puts. Is it really worth tying up tens of thousands of dollars just to make $50 a week? Why not just invest that money in an index fund and call it a day?

    What am I missing here?

    submitted by /u/fizzle63
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    Should I do anything with my Roth IRA or do I leave it untouched?

    Posted: 06 Feb 2022 07:13 PM PST

    https://i.imgur.com/fQhaol7.png

    When I decided to put money into the Roth IRA account at the end of last year, I put it all into FNILX. Seeing the value dropping a lot, I am nervous about it.

    Should I leave it untouched and let it recover? In the future should I be looking into putting money into other funds? Any recommendations or suggestions?

    Also I was wondering, with the way things are going is it wise to put money into the stock market currently or should I start saving money invcase things go sideways?

    submitted by /u/World_Voyager
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    Is it normal for utilities like NextEra (NEE) to have a huge position in "non-qualifying hedges"?

    Posted: 06 Feb 2022 01:13 PM PST

    I looked at NEE's financial reports and was surprised to see that they lost over a billion dollars on "non-qualifying hedges". They stated that these are for physical assets that aren't marked to market.

    This seems suspicious, because if the hedged assets aren't marked to market and the company isn't at risk of bankruptcy and liquidation, why do they need to pay the cost of hedging in the first place? Also, given that they lost a BILLION dollars on these hedges, why won't they go into more detail about what specifically they are hedging?

    Does any one know about what NEE is doing with these hedges or whether this is common practice for utilities with a focus on renewables?

    submitted by /u/zxcv46
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    Is COVID-19 a real booster for the Cyber Exposure Sector?

    Posted: 06 Feb 2022 02:38 PM PST

    I have noticed some of the cyber exposure companies have negative EPS and net loss for years.

    Okta, Inc. (OKTA) https://finance.yahoo.com/quote/OKTA?p=OKTA&.tsrc=fin-srch - Market cap - 29.376B, EPS = -4.81

    CrowdStrike Holdings, Inc. https://finance.yahoo.com/quote/CRWD?p=CRWD >25% YoY revenue growth, more than half of the profit goes into Selling and marketing

    Tenable https://finance.yahoo.com/quote/TENB?p=TENB - Enterprise Value - 5Billion, latest EPS = -0.44, 2 acquisitions in 2021, (I guess a lot of the momentum in revenue is coming from upselling the acquired solutions to existing customer base)

    Splunk - https://finance.yahoo.com/quote/SPLK/financials?p=SPLK, - similar trends of YoY rev growth since 2018, with the investment

    It is obvious that a lot of these companies are in a "growth" state, I wonder if this is something attributed to all growth companies or COVID-19 is a factor here? (data privacy, contact tracing, etc)

    is anywhere a data about the average growth rates per company size?

    submitted by /u/Haunting_Ad_2908
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    Calling a Super Bubble: Front Row With Jeremy Grantham

    Posted: 06 Feb 2022 02:57 PM PST

    https://www.youtube.com/watch?v=JlEGU2ypr1Q

    TL:DR - Grantham called a mega bubble last year around this time, said that the time frame for this bubble to pop was a few months vs a few years. He admits he was off by a few months. He believes we are now experiencing dead cat bounces from here on out, and that reversion to mean for the S&P 500 is 2500, from 4500 today.

    For those new to Grantham, he's a bear, famous for calling not only the peak before 2008, but also the trough to the day in 2009.

    submitted by /u/CQME
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    Is TLRY a good choice again?

    Posted: 06 Feb 2022 12:24 PM PST

    Since practically all cannabis stocks/etfs took immense losses over the last months, I think that it is soon time for recovery. The infrastructure of TLRY, for example, still remains and the German market is still planning to legalize. Wouldn't that make TLRY or Synbiotic good (but risky) short-term investments and a very good long-term investments? The US market will at some point legalize as well aren't some US cannabis stocks or etfs a good choice right now?

    what are your thoughts?

    submitted by /u/TwennyOneCabbage
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