Wth SAVA!!??

Discussion in 'Options' started by wxytrader, Nov 25, 2024.

  1. wxytrader

    wxytrader

    Position Breakdown

    Initial position (assignment):

    800 shares @ $23.00 = $18,400

    Current price = $2.30

    Unrealized loss = 800 × ($23.00 - $2.30) = –$16,560

    ---

    Averaged down with:

    700 shares @ $3.44 = $2,408

    ---

    New total position:

    800 + 700 = 1,500 shares

    Total cost = $18,400 + $2,408 = $20,808

    New average cost = $20,808 ÷ 1,500 = $13.87

    Current value @ $2.30 = 1,500 × 2.30 = $3,450

    Unrealized loss = $20,808 – $3,450 = –$17,358

    ---

    P&L Summary:

    Before averaging down: –$16,560

    After averaging down: –$17,358


    ➡️ Averaging down increased total loss by $798, but dropped your break-even from $23.00 → $13.87, making recovery more achievable.


    If I cut my losses and reinvested the $798 that I sunk into it... With Misty that would earn me $45 per month lol.

    If we use your numbers using the highest tax bracket worst case scenario:

    Summary:

    > A $17,000 capital loss saves ~$4,550 in taxes at the top tax bracket (53.53% on gains).
    Meanwhile, $8,000 in MSTY would earn ~$430/month at current dividends — a 64.5% yield.
     
    Last edited: Jul 26, 2025
    #151     Jul 26, 2025
  2. deaddog

    deaddog

    Come on man you got to get your story straight!! LOL No credibility at all!!!
    From post #13 in this thread
    All I'm trying to show is that you'd have been better off taking the loss on day one rather than adding to a losing position. Hindsight I know lol . I'll probably never convince you of that but eventually you'll figure it out for yourself. Good luck. We be done. LOL
     
    #152     Jul 26, 2025
  3. wxytrader

    wxytrader


    I just showed you the results LOL
    Reading comprehension!
     
    #153     Jul 26, 2025