Java, what do you think of this?

I work about 4 hours a day now, I want to cut that back in the next couple of years. I’d like to start playing with options.

you agree with this guy’s tweet ?

Looks pie in the sky to me.

5 comments

5 Comments

Java

Jun 09, 2024

I’m not sure what he means. With only $60k. Let me think what my account is worth and what that would mean for me.

Ok. No. Based on the value of my account. Meaning the value of my holdings? 1.5% a week? That would mean over $150,000 a week and that’s preposterous.

The amount of risk you would have to take to make that would churn your stomach and mine. And you would occasionally lose. And lose it all.

I have made as much as $12,000 or so selling calls on one stock. But that’s for a 4 week period. If I made 10-12k a week every week. And I don’t. I’d make 5-6% on the year. Options to me are really safe bets to pick up 1%. Maybe 2%. To add to the 3.6% I make in dividends on average and hopefully a 5-10% appreciation. So no. I don’t do $180,000 a week and I have way more $ than that.

You may recall I had a mental blunder and wound up making a colossal sum. $30,000. Or $300,000. But it was totally a mistake. I was doing math in my head and forgot to include two 0’s. And that was the worst 4 weeks ever. Yeah I made a bunch but never again

If you want to make it your focus and your living. That requires a degree of expertise or attention that neither you nor I have. I pick a stock I own. And a price that any normal guy would be happy to see jump. Like going from $100 to $140 in one month. And I’ll sell a call accordingly. In my perfect world it goes to $139 and I sell another in a month for $180. And it goes to $179.

Puts are on stocks at prices I’d like to own.

As you know I have taken some risks I regretted. Both in terms of the result. Tesla. And the ulcers and stress. A few have worked out really well and I made a lot of money. Had they gone south I could have been ruined. There’s a reason when they expired I didn’t do that again. Point enough empty guns at people and pull triggers? You’re gonna eventually shoot someone. Ask Alec Baldwin. So I’m selling puts on stuff I’d like to own and calls on what I own and would be happy to get out of after a nice jump

This guy doesn’t sound real.

At the level you and I are at options should be pocket change. Oh look. An easy $500. I’ll take that. Oh look I don’t think Trump is going to hit $60 in a week or too. I can make $3500 on that. It definitely adds up. But extrapolate what he’s promising to my numbers and the risk involved in getting there isn’t something either of us should be doing

Java

Jun 10, 2024

Replying to

Yeah, a lot of those theories sound good on a calculator. If you just give me a penny all I have to do is double it every day for a month and I’ll be a millionaire. Yeah great well I’m gonna guess that starting at day 15 or 16 that probably gets really tough

BigBallss

Jun 10, 2024

Replying to

True. I have never seen a business plan that didn’t make the owner a millionaire in two years or less. Or a real estate deal that didn’t throw out obnoxious amount of cash.

Java

Jun 10, 2024

Replying to

I assumed life would be like that when I started my first business. I was ok w a couple years of hard work. I just couldn’t believe there was nothing else. Like. We paid down debt. And given how much we owed that was great looking back on it. But I was cash poor.

Eventually paid off a $180k house but didn’t have a lot of business profits. Sold the first business after 25 years and never made more than about $75k a year in any year off it. Lost a lot of years. Wife divorced in 2010

Life is funny though. When I sold the first business and she is gone I needed to establish a new life. House. Furniture. Income etc. Also needed to invest in and expand the coffee and water.

So I borrowed to grow the business but you may recall post crash interest rates sunk to basically 0. Almost negative. They were almost paying you to borrow money. I thought this is crazy. I can borrow money at like one percent or less and go dump it into a dividend paying stock for three or 4%. How can this be real?

turns out it was a window. But after trying it once or twice I borrowed all I could at stupid low rates and invested in BP and J.P. Morgan. Both paid about 3-4%. When I got cocky I invested in Apple. Then when I thought I was bullet proof I invested in a Chinese index fund. And lost my @$$. About everybody else, but I have yet to make my first dollar from China. I’ve had the index fund I’ve had Alibaba. I’ve had Chinese telecom and I’ve had baidu. All of them just sucked money from me.

Anyway the coffee and water finally scaled. And it’s making money. The debts are all paid off. I have my houses. My ex thinks I was hiding money because I got super wealthy after she left. The reality was I was faced with a desperate situation and got resourceful. And the market I. 2009-2013 recovered.

I never would have done it had we stayed together. She got remarried to an older bankrupt fat guy. Looks like the Pillsbury doughboy mated with baby Huey. lives in a 900sf house in the flight path of detroits airport. Some happy endings write themselves.

Anyway I joke with peolle that I. And my business. Are 35 year overnight success stories