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It is the best strategy for someone who does not do this full-time (and for many people who do!). That is the point. A trader with experience, working in a fir
by andrepd 1y ago
It is the best strategy for someone who does not do this full-time (and for many people who do!). That is the point.
A trader with experience, working in a firm with deep pockets and terabytes of historical data and FPGAs that can execute his/her strategy and a legal team and an engineering team... can outperform you yes x)
- cosmicgadget 1y agoWell I certainly can't argue with something that is italicized. But I should say that any engineer familiar with the AI tech stack could have bought NVDA at any point in the last five years knowing how big their moat is. That same engineer could have sold monthly covered calls, taking 5 minutes out of every month to do so. And before you say it, no, they wouldn't be full port NVDA.
- andrepd 1y agoJesus, don't quit your day job to become a trader is all I'm gonna say.
- cosmicgadget 1y agoCan you at least provide specificity to match your derision?
- andrepd 1y agoIt's trivial to say in hindsight "if you had just bought XYZ in January you would have 80% gains by now!". Yet this is pure confirmation bias. Moreover, surveys routinely show that amateur day traders do not consistently beat a global stock index in a statistically significant manner. Extrapolating from past data with N=1 to demonstrate that "any tech person can outperform the index" shows a crass lack of mathematical reasoning, which in my opinion demonstrates why you're unsuited to professional trading.
- cosmicgadget 1y agoOkay since you're just tossing insults I'll just say that you don't need hindsight to have known that Nvidia is selling shovels in an AI gold rush.
- karp773 1y agoWouldn't selling covered calls on Nvidia have been like selling a goose that lays golden eggs?
- cosmicgadget 1y agoThe ones that assign, yes. But nvidia pays like one cent per share in quarterly dividends so the real golden eggs are the call premiums. Otherwise you're just trying to buy the goose low and sell it high.
- Breza 1y agoIf it were that obvious, someone would have already picked up the $20 bill. There are many examples of companies that appeared to be just as dominant as Nvidia was on May 29, 2020 (GPT-3 release date) who went to heck shortly thereafter.