Are you going to do options instead?
Nope - too expensive if you’re just talking about buying puts. Looking at DoorDash, it’s currently trading at $143 and I’d be stunned if it’s more than $125 (or even $100) by the end of 2021.
So I would want a put expiring January 21, 2022. Right now, a $125 put costs about $33. So just to break even, DoorDash would have to be at $92 or lower. That’s a -36% return just to break even.
The obvious thing to do if you believe a stock is enormously overpriced and it’s got huge implied volatility is to write a call. I can write a call at $145 strike expiring January 2022 and get a premium of $41. So basically, I’d profit as long as the price stays under $186. That seems like super excellent EV, but I’m just going to watch from afar.
If you don’t want to miss out on the next big Bitcoin jump, just ask to get paid in it.
https://twitter.com/rapsheet/status/1343929946918543363?s=21
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Not to be nitty, but it looks like this was kind of misleading. “His people” converted a portion of his salary into BTC once he got paid out by the Panthers (in USD, like they pay all their players). Seems like he has some kind of stake in some start-up.
This… doesnt seem sustainable.
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That’s absolutely bonkers.
This is similar to what happened 2 years ago when Ohio “became the first state to accept bitcoin for tax payments”. This event was met with great fanfare because it showed that the government was finally going to treat bitcoin as an official currency.
But that wasn’t what happened at all. Ohio basically said, “Um, I guess if you insist on paying with bitcoin, we’ll put a link to an exchange on our website so that you can convert your bitcoin to cash and then use that cash to pay your taxes. But we’re certainly not going to actually accept or hold bitcoin.”
Of course, the joke’s on Ohio (and me, I suppose) because if they had accepted and held bitcoin from then 'til now, the budget would be in much better shape.
Bitcoin seems to meet all of the criteria of an asset bubble but it never pops for some reason.
I mean, it went from 20 to 5 at one point. That’s a pretty large pop
I’d say the bubble popped a couple years ago it’s just been patched up and refilled
When does that ever happen? Never heard of a double bubble.
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housing/real estate, I think a lot of people would describe the current situation we’re in as a housing bubble
I’ve heard (but haven’t confirmed) that a lot of the real estate run up is in rural and suburban areas and not cities. I’m really hoping this is true and continues so I can sell my suburban house at inflated prices and buy something in the city for a “reasonable” price. (I put reasonable in quotes because I don’t really believe I’ll get something at a very reasonable price, but here is to hoping.)
Real estate is expensive but not outrageous relative to incomes. The problem last time around was people getting loans with no money down and with no way to repay absent more appreciation. Lending standards are pretty strict now, relatively speaking.
I only really examined one metro area (Portland), but suburban prices here were down as of a couple months ago, and a lot of pretty decent houses in good locations had been on the market for a while. It is what convinced us to buy more quickly than we anticipated.
I’ve been looking at houses in Indy for 4 years off and on. Prices are up about 25% since I first moved here. I probably should have bought, but didn’t have 20% - still don’t. Granted I’m only looking in a specific trendy area so it’s probably not like that in the suburbs.
The difference is that in 2006 I rented a 1 br apt for 1150 when nearby 3br 2b houses were priced at 800k. Now, that 1 br apt is 2550 and that house is back up to 800k.
With the possible exception of downtown apartments/condos (due to Covid and riots) everything in the Minneapolis area is going up up up. Median sales prices are increasing 5-10% every year.
Guys I don’t think bitcoin currently accounting for .4% of the world’s power production is unsustainable or something worth complaining about. Seems like such an odd hill to die on. Surprised to see so many on here so closed-minded about the future of BTC.
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