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Interesting dilemma Nice problem to have

By: Java



On 3/20 you purcchase a million bucks of TQQQ volatile NASDAQ triple tracking stock.   You do it because people are jumping off bridges int he financial world Corona Virus etc.  Today 3.5 weeks later you are up $434,000 on that.

 

On 4/2, it had bumped up only to 41.08 or so and you buy it again.  15,662 shares or something like that.   About $645,000    you're up $241,000 on that.  

 

Whether this is borrowed money, margin, etc at this point is irrelevant.

 

Here's the question.  I have always believed when you make a killing?  And fast?  Walk away.  I also believe in NOT paying ordinary income when capital gains are available.  

 

Would you: 

 

1) Take the $655,000 now, pay your 13% to the state and the 39% or whatever to the feds and with the cross deduction essentially net out at 50%.  Take $327,500 now?

 

2) Hold on, Possibly see the market go up further, make more.  Wait till next year and HOPE it's where it is not or better.  Cash out then at 15% capital gains, 13% state, net out around 26.5% and walk away with 481,425?

 

That's a $154,000 difference and this is a tough one.  I made a lot in a short time.  Then again, I don't have any bright ideas about what to put it back into either.  DOn't want it just sitting there.  

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