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submitted 1 month ago* (last edited 1 month ago) by Allonzee@lemmy.world to c/microblogmemes@lemmy.world

Did I say mandatory? I meant optional! You're "free" to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!

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[-] NotMyOldRedditName@lemmy.world 1 points 1 month ago* (last edited 1 month ago)

It costs money to buy a put contract to protect the loan.

So if you need a 1mil loan, now you also gotta buy puts that'll protect a downturn of 1mil. So now you gotta sell stock which will be taxed. It's less than 1mil so you're taxed less, but you will have taxes.

Edit: you could zero cost collar (puts + covered calls) your investment to protect it's current value, but you'll give up potential gains as well to get the zero cost part. But this would be a way to protect the value without selling. If the options get exercised though, you'd then have some taxes to pay.

this post was submitted on 19 Sep 2024
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Microblog Memes

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