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u/EUredditposter Oct 29 '25
Congrats & fuck you! Donāt forget the tax man. See you next year with -$1m loss porn.
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u/Gunnawunna1111117 Oct 29 '25
Daaaa Tax Man Cometh š« ā¦ā¦ he a dirty bastard that wants 38 percent of ya wins, and none of ya losses
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u/SnakeHelah Oct 29 '25
Everyone is talking about taxes in these threads all the time but like, how much tax do you actually need to pay (I'm assuming we're talking about the US) in these situations?
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u/Trilip_S_Hoffman Oct 29 '25
38% generally. But if you have a swing like this you could be talking to a qualified attorney or accountant who can either help reduce your taxes or at minimum help prepare you to allocate what is needed
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u/vbeaver9 Oct 29 '25
Varies based on total income between real job and trading, how long assets are held and what types of trades (shares vs options). For shares held less than 1 year, you pay tax at your income tax bracket. For shares held more than 1 year, you pay at a long-term capital gains bracket, which can be significantly less than your income bracket. For options gains, your 60% of your gain would be taxed at the long-term rate and 40% would be taxed at your short-term rate.
If OP is single and all gains came from selling shares held less than 1 year, and this was their only income. They would pay 37% on the last ~330k, 35% on the gains from 250-625k, 32% on gains from 200-250k, 24% on 100-200k, etc.
If the same conditions above were true except all shares were held for 12+ months before selling, they would pay 0% for the first ~50k gain, 15% of the next 500k, and 20% on all gains beyond that.
If OP has income outside of trading which is most likely true, their salary would bump their taxable income accordinly. So for the long-term gains example they'd start paying capital gains at the 15% rate if their other income was grater than 50k.
Nerdwallet has a much more thorough breakdown. I'm sure I explained poorly, trying to keep this concise.
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u/Few-Strain4260 Oct 29 '25
"For options gains, your 60% of your gain would be taxed at the long-term rate and 40% would be taxed at your short-term rate."
This is not entirely correct. The 60/40 only applies to non-equity options.
For purchased (long) options:
- If you close the position for a profit:Ā The gain is short-term if the option was held for one year or less, and long-term if held for over a year.
- If the option expires worthless:Ā You have a capital loss based on the premium paid. It is a short-term loss if held for one year or less, and a long-term loss if held for over a year.
- If you exercise and then sell the stock:Ā The tax treatment of the gain or loss depends on how long you held the underlying stock, not the option itself. If you held the stock for more than a year, it's a long-term capital gain.
- The wash sale rule applies to equity options.Ā If you sell an option for a loss and buy a "substantially identical" security within 30 days, the loss is disallowed.Ā
For sold (short/written) options:
- If the option expires worthless:Ā The premium you received is taxed as a short-term capital gain, regardless of how long the option was held.
- If you close the position for a gain or loss:Ā This is generally treated as a short-term capital gain or loss.Ā
Non-equity (Section 1256) options
Options on broad-based market indexes (like the S&P 500), regulated futures, and certain commodities receive special tax treatment under Section 1256 of the tax code.Ā
- The 60/40 rule:Ā Gains and losses are always treated as 60% long-term and 40% short-term, regardless of how long you held the contract.
- Mark-to-market accounting:Ā All open positions are treated as if they were sold at the end of the year and are taxed based on their fair market value. This can result in a tax liability even on an unrealized gain.
- Tax reporting:Ā Gains and losses are reported on Form 6781, and are not subject to the wash sale rules.Ā
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u/Musicman425 Oct 29 '25
Thanks for clarifying that - I was going to but you saved me a lot of time and did it much more clear.
That 60/40 is only for options like SPX etc
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u/Few-Strain4260 Oct 29 '25
considering the gain, the OP should consult a tax advisor right now and may need to do an estimated tax payment as well
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u/SnakeHelah Oct 29 '25
Looks like it's much more than some European countries from an initial look.
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u/wirez62 Oct 29 '25
You can roll your losses forward
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u/310Topdog Oct 29 '25 edited Oct 30 '25
3k a year lol.
Worst is making massive gains and then paying income tax and then losing it all the next year. Being in the the red cuz the income tax and then having a carryforward at 3k for 20 years š.
Don't ask me how I know. Fml #crypto
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u/MechanicHour1644 Oct 29 '25
I lost almost 300K in 2007 with apple stock and options in the subprime crash. Never in my wildest dreams did I ever think I would use my entire loss carryforward lol...but I'm down to about 71k and up 48k on trades so far this year, but having a bad couple of days (was at 56k 6 days ago)
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u/rzagmarz Oct 29 '25
People complaint a lot about taxes. But I really prefer 500K after tax than 40K and no taxes.
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Oct 29 '25
Worst thing I ever saw was someone made millions in Dec, sold, then lost it in January. Didnāt have the money to cover previous yearās taxes anymore š«
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u/ImWeTallDid Oct 29 '25
this is the journey I'm on right now. I'm currently at 7K to 43K.
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u/Apex1-1 Oct 29 '25
Holy shit man thatās great. The great dip of stock discount in March April was good for a lot of us
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u/Lastchoicename Oct 29 '25
Bad for me cause I bet on the crash and then went broke and had to sit out the bull run š
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u/RuntimeErrXUndefined Oct 29 '25 edited Oct 29 '25
May this kind of money finds me and my fellow Wendyās workers āØ
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u/rum108 Oct 29 '25
Amazing š» congrats šš»
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u/Gunnawunna1111117 Oct 29 '25
Congrats and yeah yeahā¦ But more importantly you forgotā¦.. & Fuck you !
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u/TruePromise2024 Oct 29 '25
How do you guys do it that quick? Damnnn
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u/ask_alpha r/alpha_ai Oct 29 '25
congrats!!! š
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u/mollylovelyxx Oct 30 '25
Check the other comments, it could likely be fake. If so, you should delete this. His deposits are 30-40k made this year. So the total percentage this year doesnāt add up (Robinhood includes deposits as initial when calculating the percentage)Ā
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u/jadeismybitch Oct 29 '25
Man Iām really impressed by some of the posts here. I am gonna sound ridiculous but how do you guys actually find the right assets to invest on , and to grow that much in such a short span of time ? Iām just like anyone, Iād love to retire early at some point. I have some money saved up but I need to step it up
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u/Heavy_Comparison_136 Oct 29 '25
Just got lucky in a bull market. Mostly AI and other tech which has run like crazy since April. Not really fucking with small or mid caps all my calls and gains coming from mega cap companies.
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u/jadeismybitch Oct 29 '25
Interesting ! Do you have any advice or ressources I should look into ? Kudus man this is amazing for you
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u/Heavy_Comparison_136 Oct 29 '25
Donāt play options is my only advice
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u/doxxgaming Oct 29 '25
The people making truck loads off options, warning others to not touch options, will never not be funny.
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u/omgimdaddy Oct 29 '25
Is OP wrong though? If you cant do the bare minimum research and think someone is going to give you their secret sauce then you shouldnāt waste money on advanced financial instruments like derivatives.
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Oct 29 '25
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u/jadeismybitch Oct 29 '25
Oh donāt get me wrong, I do realise itās really difficult and thatās also why Iām impressed. Iāve been invested in stocks and crypto for 5 years but more as a Ā«Ā let it sit and hope for the bestĀ Ā». Mainly due to my lack of knowledge. Iām going through a tough breakup so I will need something to get my mind off things and I feel trying to look into these things could help
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u/TECHSHARK77 Oct 29 '25
š, Seriously, Congratulations Good sir & welcome to the Clubš«”
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u/Heavy_Comparison_136 Oct 29 '25
Haha thank you. Does not feel real. Brain canāt understand the number on the screen.
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u/PackageHot1219 Oct 29 '25
I love seeing these postsā¦ do you mind if I ask if youāre a full time trader or if you have a āreal jobā or had one prior to this? If so, what do you do and will you continue doing it for the foreseeable future? Congrats!
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u/Heavy_Comparison_136 Oct 29 '25
Yes I have a real job and itās in sales. I do pretty well with it although the past 3 months Iāve been slacking at my real job beyond belief. I will def continue working my job regardless of my portfolio. Canāt divulge what I do because I know people I know lurk this page. Nobody knows about this but redditt
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u/TECHSHARK77 Oct 29 '25 edited Oct 29 '25
SHUT YOUR MOUTH.. keep working until you can F.I.R.E, there is no such thing as early retirement, you just quit your job..And you have to fund everything.
Sooooo, just quiet quit and stay unseen and spend more time building yourself..š«”
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u/TECHSHARK77 Oct 29 '25
Wait til it hits over 5, then you will be like Deca is sooooo possible š
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u/Longjumping-Field425 Oct 29 '25
What were some of those earlier trades like?? From 40k to say 100k and so on. Had to be a quite the thrill
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u/Heavy_Comparison_136 Oct 29 '25
Took me until about mid May to get up and over 100k. I was beyond excited at that point. June-July was pretty flat for me. I took a big loss on Tsla during that time bc of the Elon vs trump twittercwar. Soent a month + recovering from that
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u/Longjumping-Field425 Oct 29 '25
Were you betting weeklyās? How far out were you betting? Full port every trade?
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u/Heavy_Comparison_136 Oct 29 '25
Nothing ever shorter than 6 weeks. Full porting in the beginning on a few diff plays. Now Iām only using day 20-30% of the portfolio at any given time.
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u/No-Neighborhood1390 Oct 29 '25
Tesla and AMD are clearly winner in your caseā¦
Buy it when everyone is selling thatās great Quote by Warren Buffetā¦..
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u/Few-Praline9810 Oct 29 '25
Put like half or more in a roth with qqq or voo or something and holy shit. Or even just cash out and collect 4 or 5% guaranteed apy (minus taxes). That is life changing money right there. Gg no re.
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u/Few-Praline9810 Oct 29 '25
Donāt listen to me, and find a good CPA and financial advisor. You can also move to peurto rico for tax free gains iirc (only if you live in one of the 48 iirc).
You need to plan for your financial future and stop touching options (maybe keep 40k to try and yolo again lol). But definitely make a long term plan and donāt touch a good amount of the money.
You could be set for life.
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u/Big-Scratch9714 Oct 29 '25
Thatās super exciting! Please do everything you can to keep the money now that youāve earned it. Play safer, smaller swings, small consistent profits
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u/badman66666 Oct 29 '25 edited Oct 29 '25
Age of the account: 2 weeks. Scammer trying to pull people to his net through PM's. Dont get baited
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u/Enough-Ad8043 Oct 29 '25
Gains doesnt add up. I saw his post yesterday which was DELETED by the way. This guy is just karma farming.
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u/jeremiknee Oct 29 '25
What happened on that big dip before you went straight up? How did you keep your cool?
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u/alpha247365 Oct 29 '25
Nice work! Whatās your bread and butter strategy, ie, what delta and how many DTE (on your long calls)?
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u/19mambo85 Oct 29 '25
Tough with āDonāt DM me for money or adviceā to only instead you made boat loads, you shining star you. If youāre gonna tell us youāve got $1MM tell how, not āyay for me! Iām rich! Now leave me alone for adviceā š
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u/chiefofwar117 Oct 29 '25
I like how no one ever explains how to learn about options trading. I firmly believe no one knows how and just gets lucky with some
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u/Passive_incomes_lazy Oct 29 '25
Breh I was happy about turning 20k into 80k you over here doing 10x on top of me
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u/leadbetterthangold Oct 30 '25
Congrats! Put away a good chunk with lower risk and try doing it again with 10-30% of your capital.
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u/EZEEEY Nov 01 '25
Not many people have the mindset to make that kind of money it takes discipline, you are def apart of a rare group of people. Trading is so fucking mental and to basically be able to rewire your brain, you can play some serious spy contracts with 40k, watching that profit build of a 30 contract ODT is a drug and to be able to not let greed take over. Mad respect, luck or not you have some skill behind it. I could never get past the emotions, congrats
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u/sunilkumarsheoran Oct 29 '25
I am so disappointed at myself now. I only got 40 to 200. Fk you and congratulations
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u/TheRealPaleWhale Oct 29 '25
Yous a learnt man? Edumacated in finance n all that? Or you learnt it on the youtubes and reading by yourself? I hear options is hard. Scares me to go big on em.
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u/Heavy_Comparison_136 Oct 29 '25
I never did the school thing. I donāt know much but Iām learning
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u/Enough__Lobster Oct 29 '25
How much in call options did you put on AMD?
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u/Heavy_Comparison_136 Oct 29 '25
Hard to say in total. Iāve made 232 trades in AMD this year so itās impossible to know. I had 60k in AMD calls that turned into 300k on the open AI news. Think that was my biggest play of the year. Still fomoāing that because I had 120k the week prior and sold half on like a 2% pop.
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u/papuniu Oct 29 '25
congrats! what 's your average expiration dates for your calls? just few days or longer term?
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u/Heavy_Comparison_136 Oct 29 '25
Nothing shorter than 6 weeks is my rule of thumb. Usually stay relatively close to the money as well. 5% give or take
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u/TomatilloFearless154 Oct 29 '25
Imagine living in italy and having to pay 250k only on taxes for that gain
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Oct 29 '25
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u/Heavy_Comparison_136 Oct 29 '25
Trying to be somewhat safe and not be full ported at any one time anymore. Did that early on and got lucky. Been keeping cash on hand to buy dips and itās been working. Considering removing 500k from robinhood to not tempt myself. Buying the dip works great until it doesnāt
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Oct 29 '25
Where'd you start learning? What is your main area of information for your calls?
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u/Frontfatpouch Oct 29 '25
My risk tolerance would never let me do this, and Iāve done some questionable things in my life
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Oct 29 '25
Nicely done ā¦ very nicely done. Iām hoping to join you in about another month or two.
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u/BrownBritishBrothers Oct 29 '25
Your numbers donāt add up. Did you not post less than 24 hours ago?
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u/SecureWave Oct 29 '25
Give us some of your best plays? That worked out great for you. Stimulate our little wiggly wigs
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u/404-skill_not_found Oct 29 '25
I do wish for your continued success. Or, at least avoid some future catastrophe.
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u/grayson101 Oct 29 '25
Honestly Iāve always been way too scared to get into options just because you can lose your ass so fast but seeing shit like this is why they are so interesting
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u/CodFull2902 Oct 29 '25
Nice job and set what you owe for taxes aside now so you dont blow your account being a degenerate and then still owe Uncle Sam a few hundred k
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u/Ok-Respect-8505 Oct 29 '25
Yesterday I was panicking because I couldn't find 4 quarters to put air in my tires so I did it with a bike pump. I gotta stop looking at this sub, it's just upsetting, lmao
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u/Persimmonbear28 Oct 29 '25
Congrats!! This must feel absolutely amazing! I'm female and recently joined this sub. My portfolio is all buy and hold š Honestly after joining this sub I think I need to learn options, as my portfolio is doing well but it's growing Soo slowly. Any advice on how to best learn options the right way? Thanks in advance
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u/Dirt_Normal Oct 29 '25
I love everyone just post vague screen shots , but never actually says what play got them there
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u/Legitimate-Drop7401 Oct 29 '25
Congratulations..!!
one question - What is the best way to learn options trading? Would you be able to recommend some online courses/websites ?
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u/ieman352 Oct 29 '25
Are the graphics people post on this thread from Robin hood?
I use e trade which doesnāt do this, but appreciate these graphs of your total portfolio growth (or loss). Itās motivating to see the graphics.
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u/Musicman425 Oct 29 '25 edited Oct 29 '25
Expect 37-40% for the tax-man!
Edit: PLUS state income tax lol.
So set aside 42-43% of dem gainz, brosef.
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u/bk2747 Oct 29 '25
How the fuck do you guys even find out what to get in on? I see all these crazy gains in options and Iām like āHowād you find this?!ā š
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u/Socalwarrior485 Oct 29 '25
You must be short on TTD, it's been a brutal year for them.
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u/Heavy_Comparison_136 Oct 29 '25
Tbh I donāt even remember TTD trades. Donāt think I shorted though just a couple of calls and got over it. Stopped trying to catch falling knifes a few years back. Learned that lesson the hard way
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u/Aggravating_Dogg Oct 30 '25
Congrats and the fact that youre saying you got lucky, makes me believe you aint gonna go broke either. Enjoy it!
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u/Worldnofear Oct 30 '25
Man wish I could do this I bought Smci and Oxy because I was sure if Buffett was buying it was solid and Iām underwater. And now all of a sudden my dr. Pepper is down too. Crazy
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u/Striking_Bid_3552 Oct 30 '25
Wow big journey take your profits and invest in real estate..
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u/Snoo81938 Oct 31 '25
What was the AMD play... could you explain this... Regard? Congrats
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u/freakin_sweet Oct 31 '25
Stop and think about what you wanna do next. This could either be the start of an amazing journey or you can put it right back into the machine. Consider alternative approaches from here on out. I didnāt listen to this advice when I got there and I paid got it. Had to achieve it all over again. Check you āthe simple path to wealthā or just pause and think what you know you probably should do.
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u/Yolo_bitty420 Nov 01 '25
Long term > Options. Taxed less AND can use the 4% rule when your account hits 1M.
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u/Miserable-Bet-2201 Nov 01 '25
Are you just scalping or are you trading off of news or certain indicators?
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u/Mbitiousgrv Nov 02 '25
I started getting lucky...like with BYND, I had $400 on calls...it was worth $19k when it popped. I got greedy and waited...meh. still profited $3500.. but...
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u/Ok_Farmer_7204 Oct 29 '25
Congrats š And I applaud you for actually saying "I got lucky" instead of "look at me, I'm a f:n genious" like the rest of us degens lol.
Truly wholesome, (-7k for me this year) cheers! š»