This video is brought to you by youtube, influencer kevin paffraff. What up and that's, because now, i'm four million dollars in margin, so i have to sponsor myself: hey everyone meet kevin here. Yes, obviously check out the programs linked down below with that price expiring. On october 29th, for the programs on building your wealth, but i've got to talk about this - why am i now four million dollars in margin well folks for a variety of reasons, but the biggest of all it has to do with taxes.

Take a look at this folks. It is a pretty painful, but i had the cash set aside and i'll. Tell you what i did with the cash i had the cash set aside, but things you turned and i had to uh pay. 3.036.

337, always 337. million dollars in taxes to the good old, ah, the ah and the s. But the good news is: i don't live in a dumb state like california, where i'd have to pay these crazy income taxes to the state as well. Oh wait! Actually, i do and i had to pay about a million 81 000 to the franchise tax board.

Thanks a lot. I divided it into a million dollar payment and then the 81 thousand dollar payment that i sent uh as well, but anyway, yeah so um. Now uh now i did send this back in may so, but anyway i did. I did go into about four million dollars of margin.

Nonetheless, about 3.3 from those fed taxes - and i kind of had the money set aside, i had five and a half set aside, but the problem is, i literally blew everything on stocks and crypto throughout september and october. Well, mostly just the first few days of october. It was pretty much all september. I went on this crazy long-term buy frenzy for stocks and things that were on sale like ada, 25, 000.

uh hot 850, 000 ethereum. Twenty five k, eight of fifty k, eight of fifty decay again uh matterport uh. This is a matterport trade that i did. It was a longer buy, sell anyway, uh sold some leftover peloton that i had there as well, but uh then uh end phase bought uh more end phase shares that's a 250.

What is that? 250 times? 162. 40. 000. A firm 49.5 k, another 7.7 k of a firm, then added 100k of enphase added 13 300 uh shares of cardano, actually a little bit higher than where it is now 10, 000 or i'm sorry.

1. 000 shares of a firm at 107 added 300 shares of end phase uh. That's at 153. It's like 173 right now, another 100k on end phase on a further dip.

Then look at this adding end face 200k 100k hippo 100k lemonade, 50k docusign ethereum ada, btc uh. I mean you could just tell i'm going nuts uh shopping over here. Look at this 400k goog 300k end phase amd 50k, i mean i, i went shopping 100k. A firm 29 btc 420 shares of enphase you've got ethereum matterport palantir uh a firm again yeah.

Let's, let's just say, things went a little nutso here and those are just long trades. This is, in addition to obviously just trades that i do as well like, for example, uh selling puts on lucid or uh over here. Closing some options right here, like closing, calls on hud 8 or closing options on sofi or sold calls on a firm covered calls on tesla. Oh my gosh, i'm so glad i closed my covered calls on tesla i'd be screwed.

If i had not closed my covered calls on tesla right now, so good thing i closed those, but anyway the point is folks. I uh i i am now in a place where i'm gon na have to figure out how to pay down my margin again because uh now, i'm about four three three and a half to four in on margin. Some of it's over at m1 finance a little bit over at weibull and then most of it's over at jpmorgan chase, which is nice because their credit facility is only like 1.49 interest. But still i'm now going to have to switch a little bit into this mode.

Where, if prices keep going up - and we get this end of the year rally - i'm probably gon na have to close out some call options that i have uh profitably. Fortunately, things are turning very profitable right now. It's nuts and i'll probably have to consider trimming some of my winners just to make sure i reduce my margin now. I did also go into margin because i bought two properties for a total of about 1.8 million dollars.

So, in fairness, a good chunk of that is real estate. Then of course, the taxes, federal taxes, california, taxes and the crazy shopping spree. I went on for stocks, so uh, i'm really glad i bought the dip, but i'm back on margin. I just want to be transparent about that.

I'm not very happy about that, because i don't like margin, but i am very happy about when i bought, because the timing has been perfect. Now we got to work together on getting this margin down and usually what i recommend is strategies for getting margin down. Is you can do this, but it's risky because you could end up deeper in margin, as you could sell puts. Another option is selling calls against positions that you want to trim.

So, for example, if you made really big attendees on certain stocks and you're thinking all right well, i want to get out of margin, so i'm going to sell some of these shares instead of just selling the shares. Do a 45-day contract on covered calls for that position. That way, if the market falls, your covered call kind of hedges, you obviously not financial advice, you're not going to be completely hedged depending on what you do. It's up to you right, but covered selling covered calls again, could be very interesting on things that you want to trim on things that have run nicely things where you're like.

Ah, this is borrowed money. I should just get rid of this and get rid of my margin. Do a 45 day sold call ideally look for things with elevated volatility, because if you have elevated volatility in the stock you're going to be able to take advantage of a generally a better premium, of course you could look at open interest as well, but typically when You set volatility up you're going to get a nice extra premium, so that might mean it's time to sell some calls on things like uh end phase. Maybe you do uh some out of the monies right uh a firm.

I hate to say it, but maybe even just a little bit of tesla uh, maybe even neo a little bit. I did a little bit too much on buying is the problem. Now i don't want to close out any of these companies and i'm super bullish on all these companies, but they've done so well over the last really two weeks here that i got to be realistic if the market does rotate to the downside, i'd rather be hedged With covered calls and that way if the market does rotate down, i i have that that's going to gain in value and allows me to minimize some of the impact of my margin. Then, once i finish fixing up these two properties, i got to do some cash out.

Refinances pay off that margin again, so my hope is that uh by january, or my birthday, i'm completely out of margin again, but it's gon na take refinancing those properties. It's gon na take some big covered, call moves so i'll, be working on that uh - probably next week, probably monday through friday, working on trying to get my covered call strategy going - hopefully - hopefully, hopefully, hopefully all of next week - is just a nice green week because that's Going to make getting rid of this margin a lot easier, i'm going to feel a whole lot better about doing covered calls on some of the things that i just need to reduce my exposure to. So these are some of the thoughts i have. I don't love doing covered calls, but the fact that now i had to go into margin because of these real estate purchases because of taxation and uh, and now the market's running the market's rallying.

You know what the timing works out. It's just the perfect time to do it. It all comes after i bought the dip big anyway, so may as well take advantage of some of the attendees right now. Maybe even this is another consideration, maybe even extinguish some positions that i'm down on that.

I'm not as optimistic about anymore, like i'm, not sure about this one, because it's sold off quite a bit, but what's up with pinterest, what's up with redfin, what's up with coinbase right, some of these other companies has my: has my position shifted on them at all? I don't know, but they'll be something that i'll definitely look into potentially trimming on a little bit. So that way, if there's some losses, i could use those losses to offset gains on other things like options or or just straight shares that i have and and get rid of this margin as soon as possible. Now, just for perspective, about four million dollars of margin on about a 23.8 million portfolio is about 17 margin. I never ever like to exceed 20, but, quite frankly, i like being at zero percent.

So that way, when there's a buy the dip opportunity, i can go shopping. That is, of course, the kind of stuff that i talk about in the stocks and psychology of money program, and, if you like my insights and the way, i think about things so the way i look at the market perspectives things, i teach take a look at Those programs link down below many on real estate, investing property management, you've got being an agent making youtube content and, of course, stocks. Psychology of money options and crypto i'll link down below thanks. So much for watching and folks, we'll see in the next one thanks again, bye like and subscribe, bye.

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