EP. 179 | Options & Custodian Accounts — Your Questions Answered (Yiddish)

Okay. next question I know talk about you long use investment kids What's the basic take diversify and investment in a place saying What's the sectors? different international ETFs mutual funds can give So what is can be connection can guidance I don't educational purposes only financial However What's the definitely exposed to international kind of nice nation We like king and finances What's the second to home exposure other land and all in other sectors Which sectors? What sectors? in the airline sectors in the financial sectors Delta American Airlines United Airlines >> American Airlines, JetBlue, United Airlines, can the financial sector Chase Bank, JPM, Bank of America, Citibank, Wells Fargo, American Express, MasterCard, Visa. This is another one in the financial sector. Now I can in the sector of AI and and Nvidia, MU. This is actually can sticking a sector of car companies, GM, um Ford, for their companies can sticking and mid to bigger companies be um utility companies can sticking of of uh Amazon, Walmart, but you don't miss the Next. What next question is as always? I eat fried I eat fried as always. Um thank you for your beautiful lectures. I have a question for you. What will be if someone is selling a port? Okay, this is actually an options question. I never go with the port and I don't have enough money in my brokerage account for the whole amount of the contract. And I'm going to say uh go with the rate When you go with a port, what do you go with when you go with a port? You go with the option buyer for the port option buyer as with the stock falling into the strike price for the port, go if you go with the name of the stock. So in other words, >> stock was 18 and the dollar and the stock price can fill in the 90 dollar but here's what I missed. I sold the stock 14 into 90 dollar. Guy E of course in the stock for 50 and 90 dollar. Yes, good idea is 50 and 90 options contract is in the chase. That we hold ready 9.5 thousand dollar for every contract would be called from 100 shares for 50 and 90 dollar. Okay, Friday it does a long finish kind of half those dollars in the account. Okay, yes I'm going to answer the second half of the question. Now we assume a guy buys that I put into them. And then again guide him the broker is closing this for 50. So the broker is not letting him for 50 and 90 thousand dollar for 50 and 90 dollars I'm assuming but I don't know if he has 50 and 90 dollars in his account times 100 9.5 thousand dollar. 50 and 90 and 90 dollars. As always the guy found into 90 got 8 for him to for 50 in the stock in the Google then with the broker him losing. For 50 the port but I don't coverage of 50 dollar in today. Okay. This door is the question was in some of them again here I waited. What will happen if the contract will close between both prices? Okay, between 90 and 50 and 90. So I know that you have some strategy about it synthetic stock but let's say someone don't have any strategy. The contract just get executed below its price and it needs to buy the contract. What will the brokerage account do? What will happen? Okay. So if Friday it does all of them the stock between 90 and 50 and 90 but by the way the 7000 Friday this is by the price of challenge on the 16 and 90 strategies but the price of income challenge is 16 and 90 strategies. So if the guy found the stock to enter 50 and 90 dollar. All the 90 dollar was going to be done. So the answer is with the broker and they have to scan. 9.5 thousand dollar in the account so what the guy is going to do is draw brokers going to see him on position for expiration I'm assuming all the stock for expiration this might go up to 50. for active traders I guess so 8330 for active. Between 3:15 and 3:45 the guidance of brokers I got 30 calls from the contract in the loss together I lost Amazon assets 59 strike prices commanded stuck to 390 so I got a loss of the $2 this might times 100 months $200 loss. Plus a minus whatever premium was given on the app. So the guy is to make in the lives and I lost and I get into so the guy is waiting this video I get Okay, next. Additionally, I would like to ask you. I know that you are offering many kind of courses about options income. What do you think it will work for someone that is working every day from 9:00 to 6:00 and he can't commit for the for your timing. He can just maybe watch replays on his own time will you still recommend to sign up in the course? Will this work out for him? Okay, very very good question and the answer is many students was having was having jobs full-time jobs and I was going to tell them and they can watch the watching the replays and they email in questions with that stuff. However, the program is in the no the best of income challenge anyway close to uh but um for registration what you know going but I should get uh Actually, you can scan see I am x10.com {forward slash} Pesach p e s a c h minus no 12 it is no 100 or going to get. Okay, next question. Thank you so much for all that you do for Clarissa Roe, your amazing clear advice on finances. I listen every week and I gain a lot from it. I also took your course. Thank you. Okay, I have an interesting question. Good luck with the compliment. I have an interesting question. I know that everyone tells you not to invest in penny stocks. But I read in the Wall Street Survivor that one investor in the mansion steps made millions in it by busting penny stock pump and dump schemes and their tremendous scores. Could you please address this? I would love to hear your opinion on this. He charges whatever amount of money you would say it's a type of thanks. Okay. Stocks with a liability 50 cent a dollar to $500. Anything under 50 would be considered a penny stock. Yes, they mentioned recommended as you mentioned I have a bastard ass penny stocks. Investing in penny stocks is not the same with trading penny stocks. The pump and dumps. Pump and dump This might not be investing in penny stocks. This might be trading penny stocks. Yes, this is specifically what they mentioned. It's a crazy crazy emotional game. And And and the the success with the success stories the guy stayed and guys that can attract them. Living then. For you the success story probably handed metro is on on the set. So there's a more than emotional game with Vietnam sugar excited when got in there and when got in there I was when got in there I lost but that form heart to heart to hold I don't care whatever happens happens if follow the system to the T and often mention how many days can so to deal with the situation over Next question. How about a kid? How about a regular brokerage account for a kid? What is age two? My goal is to open 120,000 when the kid is 19 years old. If we are yet to gain 1.2 Will it transfer into a custodial account to avoid taxes? Or the next imagine in a vague in a save vague. For you the 10,000 can I have another 2,000 in margin? Is there a vague or something like that was the loan to English? Okay, so this is a little bit of a mixed up question though. Um I understand the second question is a mechanic. I can start from a custodial account and I can start from the start to avoid the taxes. I don't understand the challenge so I have to mix with the English with the Yiddish my mind is thinking what is the what is the challenge? So going on with this with the first question with the custodial account or the margin account. If I wasn't sure what you mean or investments that is in the custodial account or if it is decided that I run in a loss. And the kids just made it and advised that it is still in the business not sleeping with them with the test or steam with margin after a long period of time with margin but all this is a vague for the last on the go you set it and forget it and what is better than just on the margins are still made the tax benefit. However, what did the team say open the tax benefit? What's of the the year to realize from the game? Meaning, some of the SPY shares and starting from 20 year in the Disney bonus because guys of them can tax you my money to receive a benefit from them as the taxes. As the savings from taxes in the custodian account with this matter of my account again some of the money of my account with the ultimate account. What the guys are you doing for Christmas shares and they share done I realize again and the guys not equal to nothing more. Over the guys realize again then what's going down basis and another matter of the money 500 and she has 200 and the first two tax for the 200 for the 100 profit. I'll be all the the and don't say this with 100 years and 400 and 10 and in the way and I look 100 and 100 so good 20 year and I'm going to use better this with 100 and 100 and if I go this 500 and 100 guys to my tax again from 10 year. What's my account chances out of the guys and I don't have taxes for them and yet guys to score for nothing more guys to score for 100 and 100 and yet we 200 and another game for nothing more for sure so this year the year of the 10 year just a custodian account 10 year just a custodian account and you can see this home board this is that I say guys to score for 200 and taxes. And the second no more than another question what's the time for the year of the profit yes to do my way I can do that I can do it from life or and I can do it from 50 life or mind last in first out this mind the profit is the year together the N star rows last and the profit with the age together with the N star is the next together with the came on is there's the age together with the N star rows. The other concept is FIFO, first in first out. The age together with the N star against the N star rows. I'll be off in taxable accounts with the good treat with LIFO, last in first out when the N star rows the good N star rows profit. However, this is in the in the situation when stocks of the good for the stock for an amount in the good for the 100 amount. So, we will change the stock of the N star of the N star again with the N star of the N star is claimed with the N star accountant. So, this is the N star accountant. So, the other N star will N star N star accountant with the treat with FIFO, first in first out. The N star with the N star rows is the good with the N star again with the N star N star N star N star N star N star N star N star N star is the N star N star with the N star rows. with all with the N star N star N star N N star N star profit with the N star N star N star N star N star N star N Okay. So, N star N star N star N star N star N star N star N star N star N star N star N star N