Farm payrolls could actually be very interesting this year. Not only because of all the tariff chaos, but also because of the antimigration policy. Point is if you don´t have cheap labor to do the job, you either don´t get the job done or you pay up. And that means hiking prices. They had that yesterday in the close, speaking about elderly care and such, where services inflation has been rampant.
I bought shares of an oil company against my moral compass. This is just teaching me a lesson about the value of virtue. Also, it is pretty much what I predicted a while ago. Why can´t I ever listen to my own advice ... XD
Don´t get me wrong, I´ve been critisizing those valuations for a while. But no fears about data centers are panning out at all right now. This is just the market starting to come down from it´s CocAIne rush and beginning to actually evaluate risks. The market has just begun the process to find realistic valuations.
And yes. Retail will pay the price as always, because journalists and advisors were high on that stuff as well. It´s just how this works. Every fucking time.
Selling a call means you're giving someone the right to buy your shares at a certain price. If you already own the shares (a covered call), then you don't have to buy the shares to deliver them at that certain price.
Let's say you sell the rights to buy 100 shares, at a price of $100 per share. You sell these rights for $1 per share. You earn $100 for selling the rights to the shares.
For the person who owns the rights to make money, the share price must go past $101 per share. Scenario A: If the price stays at $100 per share, he just paid you for the right to buy your stocks at the market rate. Scenario B: if the shares go up to $101/share, he breaks even; he paid $100 for a $1 discount on 100 shares. Scenario C: If the shares go up to $102/share, he makes money, because he paid $100 for a $200 discount. Scenario D: the stock pirce drops below $100, he loses money because he paid $100 for the right to buy shares at ABOVE the market rate.
In all scenarios, you get $100, AND except C and MAYBE B, you keep all your shares. The only scenario you "lose" is C, where you only earn $100 instead of earning $200.
If you DON'T own the shares, you have to buy them to hand them over. In this scenario, you lose more money the higher the stock goes. If the price hits $200/share, you're fucked, because you promised to sell it for $100/share.
GOOG? If you had entered at any point during the year except like late Nov until now you made money on class C. That, BRKB and oddly enough VYM are holding my whole port up.
As a trade settlement specialist, please don’t! Brokers can barely handle delivering confirms on T+1. They’re still adjusting from T+2 change from last May.