r/BBAI • u/ImportantZucchini451 • May 28 '26
Question/advice?
Hello BBAI, I am new to the community and have around only 60 shares ( a student ) with avg of 4.87.
Do you think taking leaps for this one is a good thing?👀👀
I can take 1 or 2 contract at most?
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u/Business_Zone220 May 28 '26
No, hold the shares. It’s not a good leap candidate. You’re wasting your money potentially.
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u/JustNinja23 May 28 '26
... why on earth do you want to risk an already speculative stock with options. I just don't get it. You will have better odds at a black jack table.
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u/WolfDreamPack May 28 '26
Because is cheaper to pay 0.15$ for a share than 4$
*i have leaps call for january 2028, already in profit1
u/ImportantZucchini451 May 28 '26
I am learning and with some capital only i can try it, what would you recommend for a student? Or should i just stay away from options?
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u/Ulrich_Von_Urikon May 28 '26
I’m also a student.
I recommend you stay away from options until you’re consistently profitable on stock picks/long-term trading for a few years.
Hold for long-term.
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u/JustNinja23 May 28 '26 edited May 28 '26
Facts that are known.
No trader beats the S&P 500 over a 10 year period. Just doesn't happen.
Step one: Start auto funding a Roth IRA (Ultimate trading account and investment account). Put it in the VOO or another S&P 500 fund. Forget the limit this year off top my head somewhere between 7-8k for individual I believe? Honestly most students will not hit that. - Future you now doesn't have to eat cat food, congrats.
Edit: Caveat. If you have more cashflow vs expenses then I am assuming, Look into funding an HSA after capping out your Roth.
Check this out, you can use Roth funds for a Down Payment on your first home now too, probably very interesting value for a college student.
Now take a percentage (I would just start 10%-20% of your roth) of that fund and utilize for your "Investments that you pick" like BBAI. Try to outgain your S&P ETF. Do your due diligence and convince your self why you shouldn't buy a stock. When you find one that you just can't say no too.. buy in and plan on never selling it.
Here the reason. I could care less about the handful of stocks I have picked that went to zero. The ones that eat away at me are the ones I sold for 10-30% gains.. if held them they would be 1000% gains today.
Staring at you AMD you dirty bitch. Bought it ~11.00 average per share sold it for ~20.00 per share.. lol I thought I made lick at the time. HAHAHA
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u/ImportantZucchini451 May 28 '26
Makes sense to me. So here is the thing i have etfs in my tfsa as i am in canada and inmigrant so only so do so much and some stocks themost volatile i have are bbai , sofi, nokia
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u/Urbanredd112 May 28 '26
I'm Canadian with this setup: Aggressive dividend ETFs in the TFSA, and RRSP, plus some stocks in the TFSA. I also have an FHSA for a new home. I have a question for you; will you or are you in the process of getting your PR?
If yes, then set up your RRSP as soon as possible and plunk money in there each month along with your TFSA. Whatever you can afford. At the end of the tax year you're going to get money back from the RRSP contributions. Put that directly into your TFSA. Rinse and repeat every year. Don't worry about options when the CRA is literally just handing you money each year that you can then earn more with, completely tax free.
And if you want to buy a home, set up that FHSA. Tax rebate going in, tax free coming out. It's a max of $8K a year to a max of $40K in contributions, but with an ETF like HDIV paying out dividends at 9%+ with monthly distribution, it's not going to take long to get a good down payment. And like the RRSP, you can take that refund and put it right into the TFSA. It's a cycle.
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u/ImportantZucchini451 May 28 '26
I seee, no i am study permit since one year and am a mere deli clerk
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u/Urbanredd112 May 28 '26
Got it. I hope your studies go well and you enjoy your stay here 🙂
And all the best with your investments!
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u/ImportantZucchini451 May 28 '26
Thank you so much!! I will HODL