Recent comments in /f/wallstreetbets

VisualMod t1_ja6p03q wrote

>Hello, Training_Height4793. Your support and resistance technical analysis looks decent, but there are a few things you could improve on. First of all, your use of horizontal lines is not very accurate and can lead to false signals. Secondly, you should try to incorporate more Fibonacci retracement levels into your analysis as they can provide more reliable support and resistance levels. Overall, your approach is good but it needs some refinement.

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Theta_Ome t1_ja6l94r wrote

  1. Cash on the books during inflation is bad math, it’s losing value rapidly

  2. Buy backs increase price - historically, more buy backs before an economic downturn. In this case, the company doesn’t see the stock as undervalued as much as inflation as a risk to cash

  3. Buy back runs price up which makes it easy to justify a split. A split obscures the overpriced nature of the stock. Many see the lower price but don’t look at the valuation being unchanged. Makes it easier to sell the top to less knowledgeable traders/investors because some are not paying attention etc

  4. Unrealized Capital gains are not taxed but return of capital and dividends are. Better to have the option to defer taxes

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ImaginarySector366 OP t1_ja6ksgp wrote

🤣🤣 I thought the same like what do they want. Try switching to margin account and deposit $2000+, you don’t have to use Margin if you have money anyway but I guess they want Margin accounts for options level 2. I guess they like it that way.

I honestly still don’t see logic behind their regulations. But someone said that to prevent lawsuits etc., which is weird? Imagine suing them, oh you approved me for options without experience and I am poor and as a regard I lost on options I am suing you give me my money back 🤣🤣🤣🤣 Who makes Regulations and accept lawsuits like that, man.

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manishmehta71 OP t1_ja6k2gc wrote

TLT is one of the 600 tickers you can trade. I have same kind of data for SPX since 1962 when SPX started trading. I think 60 years covers all kinds of markets. I have had extremely good success with SPX using this strategy.

You are right that individual tickers, ETFs will have more risk than indices. For TLT never lost since 2002 equates to 1 in 5,040 chance and for SPX never lost since 1962 equates to 1 in 1 in 15,120 chance.

Plus this strategy is for short term trading only. 40 expiry days or less. It is not for short term trends or investing. So bear or bull markets are less important but daily volatility is.

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80milesbad t1_ja6jfm5 wrote

Same thing has happened to me w Ameritrade and I actually do have an inheritance and not asking for margin. Just want to buy some basic options and was only cleared for covered calls. I agree that it should be my business if I want to risk my own money. They seem fine with me risking it on stocks.

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AboveAvgShitposte t1_ja6i6fg wrote

Maybe they’re trying to hedge their bets?

If you think a dollar today is going to be worth significantly less tomorrow holding cash doesn’t seem smart. So where do they put the money?

Expansion is tough when interest rates are “high” (higher than recent history) and it’s a downturn, so that’s out.

Employees? If there are tough times now (missing earnings expectations) and harder times projected ahead hiring is unlikely (in fact more likely to implement layoffs like we’re seeing).

Extra equipment? That has its own problems.

My guess: At least if they buy back some stock, they burn cash that’s otherwise losing purchasing power, and prop up the stock price. It can also boost their financial ratios, which would be helpful if they believe they may need access to future credit in a tight market. Basically, the buyback increases the company’s equity value.

Also, the companies can “buy the dip” if they believe the shares are undervalued - buy them back now while undervalued and re-issue for more money when the stock price increases.

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RemmingtonBlack t1_ja6he7r wrote

Reply to comment by LoZioSodaz in Bing vs chrome by Arlo1515

>Of course Is basic knowledge you can use the search engine in every browser

...with that in mind, read the rest of the comments on here...

​

and....

EDGE is CHROMIUM

CHROME is CHROMIUM

(that was tech talk, forgive me for that... nothing 'business' related there, just a funny irony)

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jdmulloy t1_ja6h9mh wrote

They also don't want to dilute stock that's used for compensation. It's also an alternative to giving dividends where they don't have to be concerned that investors will expect the same or higher dividends in the future. There's also a tax advantage for some investors in getting returns in appreciation instead of dividends, because unrealized gains aren't taxed, but dividends are. They can avoid taxes via charitable donations and margin loans.

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