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Thursday, March 28, 2024

Comment by yodi

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  1. yodi

    I still have to slightly correct on the above theoretical 1Mil portfolio example.

    I my way of trading I would have actually 45 to 50 % in cash, say 25 % or 250,000 in option plays and 250,000 in div paying stocks. So what am I going to lose in a 20% drop? My cash stays the same 500,000.

    My stock drops to 200,000. I do not have to sell any stock!!!! Say my options even drop to a value of 180,000. So what is my loss in my 1 Mil portfolio 120,000. or better I experience a drop of 12% in my port if the market tanks 20%. I do have to deal with my options short or long. But with my stock I am only suffering a paper loss of 50,000. But remember I do not have to sell my stock.

    Does this not look good in theory?



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