u/eternalpuer

Hello friends,
I sold some LEAP cash covered puts, they’re out of the money and I don’t expect them to be exercised in the near future, but I was wondering what exactly happens if they are exercised, because the “cash” I’m using to cover is SWVXX (Schwab money market account). The logic being if they go unexercised for the next couple of years, at least I’ll be earning some interest on the capital I could have deployed elsewhere, and if they were exercised I’d acquire the underlying stock at a discount to the strike price.

if my cash covered puts are exercised will my cash equivalent be sold (being SWVXX)? Will Schwab hold the underlying stock on margin until I sell SWVXX, and thus owe interest??

Any help/allegory would be greatly appreciated

Hello friends,
I’m currently holding a preferred stock that pays a 6.6% current yield, figured Id hold and let it compound over the long run. More recently I’ve began questioning the underlying business as a long term investment and think I’d be better off sell my shares.

My question is this: dividends are payed out quarterly, the next payment date is tomorrow. Is it feasible to place a limit order slightly undercutting the current ask price and expect dividend reinvestment (from other investors who have it set automatically with their investor) to essentially to buy me out as the lowest ask price available. Pretty low trading volume for the preferred and around a 50 cent bid-ask spread which would be substantial for me.

TLDR can you rely on automated dividend reinvestment as exit liquidity

Hello friends,
I have an Amex gold card with no credit limit. My main expense these days is rent ~1,400 a month and I’ve recently been wondering if it’d be worth using my gold card to gain some points my monthly rent. I typically just pay my roommate with via my checking account using Venmo. I’d only get 1x points (as it wouldn’t be dining/travel/etc) but at least I’d be earning something back.

Note: from previous posts I’ve seen cards w/o a credit limit shouldn’t affect your credit utilization in the same way payments typically would.

TLDR would my FICO score explode? Does it even seem viable after a 3% Venmo credit card fee?? Any wisdom is greatly appreciated ❤️

Hello friends,
I have an Amex gold card with no credit limit. My main expense these days is rent ~1,400 a month and I’ve recently been wondering if it’d be worth using my gold card to gain some points my monthly rent. I typically just pay my roommate with via my checking account using Venmo. I’d only get 1x points (as it wouldn’t be dining/travel/etc) but at least I’d be earning something back.

Note: from previous posts on this sub I’ve seen cards w/o a credit limit shouldn’t affect your credit utilization in the same way payments typically would.

TLDR would my credit FICO score explode? Does it even seem viable after a 3% Venmo credit card fee?? Any wisdom is greatly appreciated ❤️