Tax advantaged investing after 401k and IRA are maxed
06-09-2015
, 12:37 AM
Quote:
Bigger point was the first line about EV. It's rudimentary to not be thinking probabilistically about EV, esp. on a poker forum. You can't just say, "downside capped, upside unlimited = +EV". Basic example to get the point (and obviously outcomes would be over a distribution, but keeping it binary for simplistically), 75% chance of losing your "max" 3k, 25% of winning 8k is -EV.
As for 1, 2, 3.
1. Ok.
2. At your prices, if you trade only 10 contracts you're still looking at $30 roundtrip, which is 1% of your size. And that doesn't include the bid/ask.
3. Sure you could be ITM buyer but it becomes less the premise of an upside home-run trade. 1,2, and comment about EV all remain.
Bottom line, it's terrible advice to think there's a 3k loophole we should all be capitalizing on end of the year. If you want to "take a shot" at a -EV gamboool, there won't be a line.
Gl!
As for 1, 2, 3.
1. Ok.
2. At your prices, if you trade only 10 contracts you're still looking at $30 roundtrip, which is 1% of your size. And that doesn't include the bid/ask.
3. Sure you could be ITM buyer but it becomes less the premise of an upside home-run trade. 1,2, and comment about EV all remain.
Bottom line, it's terrible advice to think there's a 3k loophole we should all be capitalizing on end of the year. If you want to "take a shot" at a -EV gamboool, there won't be a line.
Gl!
