Alphapuppy, I've never invested more than a small percentage of my buy power on margin, and even there on occasion I've been burned, but on other occasions it's permitted me to substantially increase my equity. I continue to think of it as a tool.
I do have friends who're far more diversified than me, but who also have far greater assets, who've purchased cars, and even an 80+ ft yacht with margin loans. I have no idea if they have documentation with the brokerage that no similar margin call could occur. Clearly they have major assets, but when they looked at all they could possibly do to pay for the yacht they chose the margin loan.
Personally I hope that by the time I'm looking to buy an electric car, probably a 2024 model, I'll be able to write covered calls on NWBO and won't have to write them on that much of my stock to cover it. I typically sell such calls after a big runup in price where out of the money calls are selling at premium prices spurred by the runup. If I'm right, and the share price retrenches before moving up to new highs I either let the calls expire worthless, or buy them back for substantially less than I purchased them for. Worst case I allow the shares to be called away for more than they were selling for at the time I sold the option, and I've got whatever was paid for the option. I will do the same thing if I want to sell stock, but am not in a rush to do so, sell the call in a short term option at essentially just above the current market price, if it does move up I'm called out at the somewhat higher price and I have the premium from the selling the call, if I'm not called out I do it again. The key of course is being flexible about when you want the money, clearly if money is needed now, you sell now.
Gary
News 
Market Data 
Discover 
AI
