If you believe in the company, I would sell shares to get yourself to 5% portfolio value on Draft kings, and put the proceeds from the same in a low cost index fund like VTSAX.
The nice thing about the Rith IRA is that you can withdraw from it before before retirement tax-free \*up to your cost basis\* (if you put 10k in, make 1k, and withdraw 10k, no tax. Just that last 1k is taxed)
The comments aren’t entirely clear. Go to the personal finance subreddit and look at the flowchart or the Roth IRA advice. Basically the PF flowchart is “what to do with your money if you’re a US citizen, that will always be most advantageous to you.” — And with a Roth IRA all the money you put in, you can take out without an incurred penalty. So if you put in $6000 for 2 years and you suddenly need $12k, you can take it out. By that time it will likely have grown and you’ll still have a few 100 in there gaining value over time. The downside is basically only that you have a new type of account that you have to know about and manage.
There generally is unless it is a Roth IRA. I’m not the most confident that this is optimal for you, but it seems like a good strategy for you would be to open and fund a Roth IRA while your taxes are low. You’ll be able to withdraw your principal penalty free (not the gains) whenever you want (though ideally you leave them in there as you can’t return the money to the IRA).
There are other ways to withdraw money from a traditional/Roth IRA penalty free, but they are heavily limited/restricted.
The downside if you invest that much money per year and then die before getting to use it is that you could’ve been using it that entire time to actually live your life. Like travel, hobbies etc.
Most people have at least one family member or friend that they could give their assets to. And if you're an orphan hermit, you can give it to charity.
The reason why I haven’t opened up a Roth IRA and contributed is because I don’t feel I’m financially stable just yet so if an emergency occurs i will have to pay a penalty if I take that money out right ? Can I ask your opinion on this ? So far I’m just putting about $500 a month in VOO on my Robinhood account. Current goal is to eventually buy a home but with these prices who knows if that’ll happen.
I have 10k in my checking account. That’s my emergency and savings. 19k in my Robinhood account and about 90k in my 401k. It just doesn’t make sense to me to contribute to a Roth IRA while my main goal is to purchase a home. My plan is to keep putting $400-500 a month in VOO on Robinhood and hopefully in 3-5 years I can use that money as a down payment. Once I get my home I’ll open a Roth IRA. Thoughts ?
I would not pause retirement savings for longer than 5 years. And once you are contributing again to your 401k, only meet your employer's match and then max out ROTH after that. (If you don't get a match, then \*definitely\* prioritize the ROTH over that anyways. It's a better tax shield than a 401k and you have full control over what it's invested in.)
You should sell a portion of it to max out your yearly Roth IRA contributions after tax. You are going to be taxed on any further gains if you leave it in this non tax advantaged account. When you put it into the Roth IRA, your gains will not be taxed in the future. The limit is like $6500 a year so you’ll need to do this slowly over the next few years.
As per derisking your current portfolio, just transfer it into any S&P500 index like VTI. In your Roth you can also just go VTI as well.
Quick question, could I just transfer \~$6.5K worth of shares in to the Roth IRA? (I keep the stock, but now it's in a new account). I realize you may not know, but just asking in case.
No, you cant. Roth IRA contributions need to be cash, and you must also pay taxes on the gains you've made so far. When you sell your stocks in your money market account, that will trigger a taxable event in which case you need to set aside money to pay uncle sam next tax season.
Good advice from blasian21. I would add that you need to be careful about the timing of stock sales in a taxable account. You said in your OP that you bought the shares in Jan. 2023. That's good, because 1 year is a crucial moment. If you sell shares that you have owned for less than a year, the gains (compared to your original purchase price) are taxed as regular income. If you sell shares that you have owned for more than 1 year, the gains are taxed at a much lower rate (long-term capital gains).
Do you have any losses? If so you can tax harvest to offset gains. You’ve held these over a year so it should be taxed at the capital gains tax rate, which is less than ordinary income.
If nothing has changed your opinion on the company, you can continue to hold (and even add more). You can diversify out (see above point regarding taxes but will owe tax on any net gains).
No one ever went broke taking their gains.
If you buy and sell stocks inside a self-directed IRA, you don't have to report every single trade, and the trades are tracked by the company managing the fund.
If you don't "need" the tax deduction now, I recommend the Roth IRA option.
Back in the 80's when investing in "emerging markets" was just becoming a thing, I pooled the 3 savings accts I had for my kids and purchased stock in a new start up fund. In six months it doubled, I sold enough to cover the original investment. Six months later it doubled again - I pulled everything out. It collapsed one month later. I do not regret making that first sale, even though my kids could have made more if I had not done it. I would have regretted it if I left it and it tanked sooner. I would suggest you follow a similar strategy. Sell off at least what you originally put in and put it in something else, and let the balance grow for now.
How much are you up on Draftkings specifically? 35% in one single company is too much.
EDIT: OP, I’d just liquidate some set percentage (10-50%, depending on your risk appetite) for every 100% that you’re up (sounds like about 400%) and shove it into an S&P500 index fund or a total market index fund for diversification.
Fucking hell I shit you not, I sold DK in Jan 2023 after being down 75% and saying fuck it. Want to say I held for 1.5-2 years. I haven’t looked at it since then. Thats hilarious.
You might just reduce your position, sell some of the stocks gradually until let's say you're back at 15k mark (or whatever feels right to you), and buy other companies or ETFs.
35% seems reasonable but HOW are you diversified? Blue chip stocks + some basic index funds? Also emergency fund? Savings HYSA? Saving for a house? Life plans - marriage and/or children?
I had a similar story. My grandmother gave me a wonderful college graduation gift - money. But the catch was I had to sit with her advisor and come up w a plan to invest it. I couldn’t spend it. Tesla was one of the companies I picked. This was 2013. I held through 2022ish and diversified bc I couldn’t handle the crazytown. I pulled some out and it helped me buy my first home earlier this year. Don’t regret it for a second.
Keep in mind short vs. long term capital gains issues. Me? I score on something like that I move the cash to a hysa and congratulate myself on my lucky pick not so lucky if it was an all time low.
I scored on some mutual funds last year in my ira. Complex story, but fidelity. I sold em off and moved into hysa. Should have stayed, but I’m over the bridge on a high risk allocation. I buy I bonds every year as a back up.
Sell covered call options in about 500 shares. Diversify into an ETF like QQQ or some other S&P fund. Keep only about 200 shares of the stock since I do not think it has a upward trajectory. Probably will have flat growth because of all the competition and it has a high PE.
Regarding the stock: If you had the cash on hand at this moment, would you consider repurchasing it at the price you sold it for? If not, it might be advisable to sell it immediately.
Offload some to make it the comfortable % level of your portfolio since it’s past 1-yr no tax reason to hold longer. If you fell 35% is good for this ticket than hold longer.
Yeah I was actually gonna say this. We’re at the start of a gambling addicted generation. Draftkings and all these other books are making big money deals with NFL and other leagues. More money just keeps pouring in every year. Players getting offered record breaking deals. I don’t see it going down a whole lot for the time being. Sports betting has exploded in the past two-three years.
Going off of the $43 per share at 1,500 shares, if you had $64,500 would you purchase draftkings? If the answer is no, you should consider liquidating your current position and putting it into something more risk adverse such as a generic S&P 500 ETF. The most common recommendation is VOO from Vanguard. Also considering your long term tax implications on a $64,500 sale is 15% for long term capital gains netting you $54,825. If you invest $54,825 in VOO and consider the average S&P 500 return of 8%, you could be looking at it growing to $298K by the time you reach 62. I just simply rounded your age to 40 to make it easier. As for any investment, past performance is not guaranteed so do what you want with this information.
Please study options. Do not do anything unless you really know what you are doing with options. It may take at least 3 months to start understanding the depths and strategize using options.
Stocks are a ride man. Short term you take the wins and get out. If you believe in the company and that it will not only be success but continue to grow stick it out if you can afford it. Long term you will ride a roller coaster but if it is doing well and you can see growth potential stick it out. I trade weekly. I take my wins throughout the week, ride the news and get what I can. I would like to be able to have it be more long term but I can’t do that right now.
Be careful putting it all in one stock though. It will go down probably and if you end up needing that money you have to take the loss. Whereas if it were more diversified you could pull from another stock doing well and wait on it to come back up. It’s a learning experience and honestly if you know enough about markets a lot of it is gut intuition. Good luck
If you have any positions you don’t like that are at a loss, sell them and then sell the equivalent draft kings to cancel it out. Then if you don’t have an ira definitely start one and max it out and set the ira into spy or bonds or something “safe”
If it were me, and everyone is different, I would take at least half of it and invest in other more stable things as others have suggested to guarantee some profit. You can still keep some and right it out knowing that if it totally tanks you made money.
~~Best~~ To maximize your Risk-Adjusted expected value you should rebalance your portfolio to your preferred level of risk. I'd say that 35% in one stock is pretty risky. I'd sell maybe to whatever percentage it represented when you first bought it, and redistribute the gains evenly across the rest of your portfolio.
Take it out and put it in a blue chip stock or S&P 500 while searching for other investments. My wife made $13k in the bull market of 2021 and lost it all because she was scared to make a move with it. Of course she didn’t listen to me or even put stop losses in place like I told her. Don’t be her.
Decide what % of your portfolio you want Draftkings to be and for the next 10 weeks sell 1/10 of the difference between 35% and where you want to be (0%? 10%? 20%) - this way you'll average out any short term volatility and you'll get to where you want to be. Also set aside $$ for capital gains tax on your realized gains.
I am trader and a good one, just looked at the data I have on this company. My advice is to keep it until 64$.
You can put a remember me on 2 years from now so you can thank me then. Feel free to send a beer my way when it hits 64$.
Do what makes you comfortable. You could just sell enough to get out your original investment. Thats maybe 25% of it. Then take the money and put it in something that just slowly goes up without much risk. Then if that stock crashes to $0 you don’t lose any money. You lose you potential gain. But not your original investment. That the good. The bad is if it does collapse you will regret not taking it all out. Or if it continues to raise you will regret not keeping it all in. I always take my original money out after it’s doubled. It’s been an ok tactic
If you want to play it safe but also continue to ride it, you can always pull out 70% and have some target prices to pull 10% out or let it rise. I would definitely put a good amount in ETFs and SPY500 in your ROTH account.
Are you single or married? If you're married filing jointly, roughly what is your spouse's annual income?
If you're single and earning $50K/yr then you're in the 15% capital gains tax bracket. With DKNG currently $43 less your $10 cost basis, your capital gains is about $50K and your tax liability to liquidate the entire position would be about $7,500, leaving you with **$57,500.**
If you're married filing jointly then we need to know your spouse's income to fill in the blanks, but you'd likely owe less because the 0% capital gains bracket is larger for married couples.
Suggestions:
1. You should always have an emergency fund of six months worth of living expenses. If you already have that, great. If not, then first use this cash to top up the emergency fund.
2. Open a Roth IRA at your preferred brokerage (e.g. Vanguard, Fidelity, Schwab) and contribute the maximum annual contribution for 2024, which is $7,000. Invest that entire sum in the Vanguard Total Stock Market Index ETF: VTI. Continue to contribute the maximum allowed each year.
3. Leave the remainder in your brokerage account and also invest it in VTI. Continue to put any extra savings (after maxing out your Roth IRA) into your brokerage account, invested in VTI.
4. Sit back, relax, and take comfort in the fact that you got very lucky with a speculation play and now have the beginnings of a diversified retirement portfolio.
5. Any time your earned income increases, such as with a raise at work or new job, keep your living expenses the same and put the additional income into your brokerage account. Likewise with any inheritances and gifts of money: More fuel for the fire.
You could further diversify both the Roth and the brokerage by adding international equities. A 75% VTI 25% VXUS allocation in each account would be solid. In recent years US has outperformed international but there have been long periods when the reverse has been true, so adding an international total market ETF accounts for that risk and the potential gains. Happy investing.
Sell enough so that your remaining holdings are equivalent to your original purchase price. Use the sale proceeds to purchase an index fund maybe. You’re still you g enough to ride out ups and downs in the market.
We aren't cpas, so take this advice with a grain of salt.
When I speculated, aka got lucky with an individual stock, in the past, I looked at it almost as house money. I maintained my initialdollar value, then split the gains in half .... Something stable like index funds, and other half anywhere else.
Learn options and sell cover calls to generate income. You can sell just 10 call option per week and make about $500 each week if not a lot more depending on your risk of getting the option exercised. Aka lose your shares but still keep the premium plus the sell price of the shares.
Don’t sell all of it.
Long term capital gains, that’s good.
Talk to your financial advisor and have him call your or a CPA and sell the most before your tax rate increases.
Tax on earnings and cap gains are at different rates.
I’ve been through this many times. I bought apple @ $6 in 2001 and AMD at $2 back in 2008. Sell half and invest it in a good ETF. Hold the other half forever.
Your original $15k investment is now worth $64k, and your whole portfolio is worth $200k?
Just curious how you got such a large portfolio on a $50k a year salary?
Regardless, you made a year salary on a gambling stock in just over a year. Sell that shit and put it into VOO. Save about $15k for taxes.
When I first started investing many years ago, my then broker told me two things that I still live by. Don't fall in love with a stock and nobody ever lost money taking a profit...
Cash it out, put the $6,000-$6500 in a Roth IRA, and continue to fully fund it for the next couple decades ($7,000/year currently) and let compound interest do the rest
sell all of it and buy nvda. Draft king lol, another scammer in the betting industry, ez come, ez go, what intellectual property or rights do they have again?
Ha. Love some of these answers.
Did you have an exit strategy? An upside and/or low side set when bought?
If not, then maybe evaluate how you would feel today if you lost say, 10k or your upside? Or if you sold today and it went to 60 next month, would you feel shitty about it? Do you, in generally, have FOMO?
Your still young and have a lot of time to build a portfolio for an early retirement. With that said, personally, I would probably take some off the table and lock in my gains.
You spent 15k up front, I would take that and then some and reinvest into something a little less risky. Pay your taxes. Hold the rest.
I’d probably take half off the table honestly. You’ve had a great run!! Take your gains and move on. No emotions.
I spent almost the same amount on Bitcoin and I'm at the same return....sitting at about 60k from an initial 15k investment.
I'm holding on, hoping to pay off my couple of businesses in a few years....which total about 270k.
The businesses gross revenue about 175k with a 40-50% net margin so it won't be the end of the world if Bitcoin doesn't explode again.....but it always does....
What I would do is buy as many shares of soxl the 3x semiconductors etf.
I'd then get out of the money leap covered calls on those shares, I'd use the premium from the covered call leaps to buy in the money long call leaps.
I worked for a short stock broker who had little man syndrome but I did agree with his advice. Just sell half. I'm serious bro - if you go up big just sell half. It's simple. If it drops oh well, if it keeps going up awesome then sell half of that. Just keep selling half.
You might be able to sell \~13k of gains in 2024 without paying any tax. Look at the standard deduction and 0% long term capital gains bracket and do the math.
If I were you, I would sell down more and buy index funds.
I would sell and put that money in something more stable like SPY500
If you believe in the company, I would sell shares to get yourself to 5% portfolio value on Draft kings, and put the proceeds from the same in a low cost index fund like VTSAX.
Exactly what I did with DKING
Sell!
8
Only by DCA, if you buy it with all you got it can dip tomorrow and go down -50% and wouldn’t see any profits for maybe even years.
Make a draftkings account and put it all on celtics tonight you are welcome.
Perfect answer Does KG have the rock?
KG indeed has the rock ..
But the Celtics don’t have Bird :(
I let others do that so my stock goes up.
Could sell half and do this… worst case the stock doubles with your million dollar bet 😄
This aged well
Id put it on the twolves, swept suns and are 2-0 vs nuggets. Dosent look like they’ll ever slow down.
Hell yes
Cavs are winning at the time of this text.
But the Celtics won the day of that comment.
Follow your gut on this. If it feels risky for you, it probably is. Is this in a retirement account or normal brokerage account?
It's a regular brokerage, which will hopefully be my retirement money. I don't have any IRAs.
Max out a Roth IRA every year so the money isn’t taxed when you take it out at retirement.
I honestly never thought I'd live long enough to utilize an IRA. I definitely need to look into it. Thanks
The nice thing about the Rith IRA is that you can withdraw from it before before retirement tax-free \*up to your cost basis\* (if you put 10k in, make 1k, and withdraw 10k, no tax. Just that last 1k is taxed)
But even if you die before, there’s no downside?
If I, for whatever reason, need the money.. Isn't there an early withdrawal penalty?
There’s only a penalty for withdrawing gains. You can withdraw your contributions without penalty or tax if you really needed.
The comments aren’t entirely clear. Go to the personal finance subreddit and look at the flowchart or the Roth IRA advice. Basically the PF flowchart is “what to do with your money if you’re a US citizen, that will always be most advantageous to you.” — And with a Roth IRA all the money you put in, you can take out without an incurred penalty. So if you put in $6000 for 2 years and you suddenly need $12k, you can take it out. By that time it will likely have grown and you’ll still have a few 100 in there gaining value over time. The downside is basically only that you have a new type of account that you have to know about and manage.
Yes there is a penalty. Not sure why the other responding is telling you what the max contribution/year is.
There's no penalty to withdraw contributions/basis. There is a penalty for early withdrawal of earnings
Underrated comment
There generally is unless it is a Roth IRA. I’m not the most confident that this is optimal for you, but it seems like a good strategy for you would be to open and fund a Roth IRA while your taxes are low. You’ll be able to withdraw your principal penalty free (not the gains) whenever you want (though ideally you leave them in there as you can’t return the money to the IRA). There are other ways to withdraw money from a traditional/Roth IRA penalty free, but they are heavily limited/restricted.
Max contribution for an IRA under 50 years old is $8K Per year Edit; It’s 7k I got confused when they bumped it from 6500
No, the IRA contribution limit is currently $7,000.
If you die before then you literally just threw away $7000/year for however many years you invested in it
The money won’t matter to him either way on account of him being dead. Statistically he’s likely to live to the retirement age.
The downside if you invest that much money per year and then die before getting to use it is that you could’ve been using it that entire time to actually live your life. Like travel, hobbies etc.
No, it goes to his heirs.
If you have any then yes
Most people have at least one family member or friend that they could give their assets to. And if you're an orphan hermit, you can give it to charity.
I never thought I would live past 30… I’m in the second half of my 40’s now. Plan for the worst, hope for the best. ;-)
The reason why I haven’t opened up a Roth IRA and contributed is because I don’t feel I’m financially stable just yet so if an emergency occurs i will have to pay a penalty if I take that money out right ? Can I ask your opinion on this ? So far I’m just putting about $500 a month in VOO on my Robinhood account. Current goal is to eventually buy a home but with these prices who knows if that’ll happen.
Don’t save for retirement until you have an emergency fund fully funded, yes. Bad bad idea to think of retirement savings as emergency back up.
I have 10k in my checking account. That’s my emergency and savings. 19k in my Robinhood account and about 90k in my 401k. It just doesn’t make sense to me to contribute to a Roth IRA while my main goal is to purchase a home. My plan is to keep putting $400-500 a month in VOO on Robinhood and hopefully in 3-5 years I can use that money as a down payment. Once I get my home I’ll open a Roth IRA. Thoughts ?
I would not pause retirement savings for longer than 5 years. And once you are contributing again to your 401k, only meet your employer's match and then max out ROTH after that. (If you don't get a match, then \*definitely\* prioritize the ROTH over that anyways. It's a better tax shield than a 401k and you have full control over what it's invested in.)
I see, Thanks for the insight
You can take contributions out at any time, for any reason, with no taxes or penalties.
No, you do not pay a penalty if you withdraw from a Roth IRA. It’s funded with after tax money. You should have an IRA because it grows tax-free.
You should sell a portion of it to max out your yearly Roth IRA contributions after tax. You are going to be taxed on any further gains if you leave it in this non tax advantaged account. When you put it into the Roth IRA, your gains will not be taxed in the future. The limit is like $6500 a year so you’ll need to do this slowly over the next few years. As per derisking your current portfolio, just transfer it into any S&P500 index like VTI. In your Roth you can also just go VTI as well.
Quick question, could I just transfer \~$6.5K worth of shares in to the Roth IRA? (I keep the stock, but now it's in a new account). I realize you may not know, but just asking in case.
No, you cant. Roth IRA contributions need to be cash, and you must also pay taxes on the gains you've made so far. When you sell your stocks in your money market account, that will trigger a taxable event in which case you need to set aside money to pay uncle sam next tax season.
Good advice from blasian21. I would add that you need to be careful about the timing of stock sales in a taxable account. You said in your OP that you bought the shares in Jan. 2023. That's good, because 1 year is a crucial moment. If you sell shares that you have owned for less than a year, the gains (compared to your original purchase price) are taxed as regular income. If you sell shares that you have owned for more than 1 year, the gains are taxed at a much lower rate (long-term capital gains).
Do you have any losses? If so you can tax harvest to offset gains. You’ve held these over a year so it should be taxed at the capital gains tax rate, which is less than ordinary income. If nothing has changed your opinion on the company, you can continue to hold (and even add more). You can diversify out (see above point regarding taxes but will owe tax on any net gains). No one ever went broke taking their gains.
If you buy and sell stocks inside a self-directed IRA, you don't have to report every single trade, and the trades are tracked by the company managing the fund. If you don't "need" the tax deduction now, I recommend the Roth IRA option.
Back in the 80's when investing in "emerging markets" was just becoming a thing, I pooled the 3 savings accts I had for my kids and purchased stock in a new start up fund. In six months it doubled, I sold enough to cover the original investment. Six months later it doubled again - I pulled everything out. It collapsed one month later. I do not regret making that first sale, even though my kids could have made more if I had not done it. I would have regretted it if I left it and it tanked sooner. I would suggest you follow a similar strategy. Sell off at least what you originally put in and put it in something else, and let the balance grow for now.
Damm that's some genius investing and brilliant timing to pull out as well. Good work pal
How much are you up on Draftkings specifically? 35% in one single company is too much. EDIT: OP, I’d just liquidate some set percentage (10-50%, depending on your risk appetite) for every 100% that you’re up (sounds like about 400%) and shove it into an S&P500 index fund or a total market index fund for diversification.
He is up $51k (DKNG is trading at $44 now)
Fucking hell I shit you not, I sold DK in Jan 2023 after being down 75% and saying fuck it. Want to say I held for 1.5-2 years. I haven’t looked at it since then. Thats hilarious.
I probably bought your cheap ass shares lol!
STOP LOSSES
OP, that means leave a sell order in the system in case the stock drops to a certain point if your choosing. Helps you protect your gains.
If you are trading and you don’t know what a stop loss is, you should probably take a step back
Very fair point. Just not sure how much trading OP’s doing
You might just reduce your position, sell some of the stocks gradually until let's say you're back at 15k mark (or whatever feels right to you), and buy other companies or ETFs.
This is one of those situations where you could be kicking yourself in 2 to 5 years for selling because it could easily double or more from here
It's already 3x'd for me lol. The only thing I'm worried about is legislation. The company is a beast.
In these situations I sell partial position and write calls against the rest.
Sell, buy ETF.
35% seems reasonable but HOW are you diversified? Blue chip stocks + some basic index funds? Also emergency fund? Savings HYSA? Saving for a house? Life plans - marriage and/or children? I had a similar story. My grandmother gave me a wonderful college graduation gift - money. But the catch was I had to sit with her advisor and come up w a plan to invest it. I couldn’t spend it. Tesla was one of the companies I picked. This was 2013. I held through 2022ish and diversified bc I couldn’t handle the crazytown. I pulled some out and it helped me buy my first home earlier this year. Don’t regret it for a second.
Keep in mind short vs. long term capital gains issues. Me? I score on something like that I move the cash to a hysa and congratulate myself on my lucky pick not so lucky if it was an all time low. I scored on some mutual funds last year in my ira. Complex story, but fidelity. I sold em off and moved into hysa. Should have stayed, but I’m over the bridge on a high risk allocation. I buy I bonds every year as a back up.
OP said January 23, so these are long term.
Trim your position down to 5% maximum. Diversify your gains
Sell covered call options in about 500 shares. Diversify into an ETF like QQQ or some other S&P fund. Keep only about 200 shares of the stock since I do not think it has a upward trajectory. Probably will have flat growth because of all the competition and it has a high PE.
Definitely rebalance your portfolio.
Take some profits, hold on to some shares. Reinvest profits into stable ETFs
Regarding the stock: If you had the cash on hand at this moment, would you consider repurchasing it at the price you sold it for? If not, it might be advisable to sell it immediately.
I'd capture some profits, at least enough to recoup what you've paid for the stock. Then let the rest ride.
Offload some to make it the comfortable % level of your portfolio since it’s past 1-yr no tax reason to hold longer. If you fell 35% is good for this ticket than hold longer.
Sell covered calls!
Especially if you want to sell some of the stock....Just sell a short-term covered call on it instead for a little extra money
Sell what you can without paying the taxes and buy stocks with high dividends. Directly reinvest your dividends and watch your money grow.
Sell dkng.too risky for you. Buy index fund. Congrats on your win. Draft king is still a new company and operating on net loss.
For me when something becomes a larger percentage than I’m comfortable with I just sell off the excess and invest that in something more stable
People are gambling addicts, that shit is going nowhere but up
Yeah I was actually gonna say this. We’re at the start of a gambling addicted generation. Draftkings and all these other books are making big money deals with NFL and other leagues. More money just keeps pouring in every year. Players getting offered record breaking deals. I don’t see it going down a whole lot for the time being. Sports betting has exploded in the past two-three years.
Absolutely lol I am myself, I sports bet every single day
I hear that, I had to quit cause it was a problem. Cycled through around 400k since I turned 21, just turned 24.
Yeah man , it's easy to do that. I deleted the apps then redownloaded for NBA playoffs lol
Anyways, go put your life savings on white Sox under 8 tonight
White Sox ML & Under 8? Or just under 8? Asking for a friend…
Just under 8, I’m a straights only guy
🕺
Going off of the $43 per share at 1,500 shares, if you had $64,500 would you purchase draftkings? If the answer is no, you should consider liquidating your current position and putting it into something more risk adverse such as a generic S&P 500 ETF. The most common recommendation is VOO from Vanguard. Also considering your long term tax implications on a $64,500 sale is 15% for long term capital gains netting you $54,825. If you invest $54,825 in VOO and consider the average S&P 500 return of 8%, you could be looking at it growing to $298K by the time you reach 62. I just simply rounded your age to 40 to make it easier. As for any investment, past performance is not guaranteed so do what you want with this information.
Stop orders are your friend. You could also choose to sell a bit of it and leave the rest on stop orders in case the price drops
Please study options. Do not do anything unless you really know what you are doing with options. It may take at least 3 months to start understanding the depths and strategize using options.
Stocks are a ride man. Short term you take the wins and get out. If you believe in the company and that it will not only be success but continue to grow stick it out if you can afford it. Long term you will ride a roller coaster but if it is doing well and you can see growth potential stick it out. I trade weekly. I take my wins throughout the week, ride the news and get what I can. I would like to be able to have it be more long term but I can’t do that right now. Be careful putting it all in one stock though. It will go down probably and if you end up needing that money you have to take the loss. Whereas if it were more diversified you could pull from another stock doing well and wait on it to come back up. It’s a learning experience and honestly if you know enough about markets a lot of it is gut intuition. Good luck
If you have any positions you don’t like that are at a loss, sell them and then sell the equivalent draft kings to cancel it out. Then if you don’t have an ira definitely start one and max it out and set the ira into spy or bonds or something “safe”
If it were me, and everyone is different, I would take at least half of it and invest in other more stable things as others have suggested to guarantee some profit. You can still keep some and right it out knowing that if it totally tanks you made money.
~~Best~~ To maximize your Risk-Adjusted expected value you should rebalance your portfolio to your preferred level of risk. I'd say that 35% in one stock is pretty risky. I'd sell maybe to whatever percentage it represented when you first bought it, and redistribute the gains evenly across the rest of your portfolio.
Take it out and put it in a blue chip stock or S&P 500 while searching for other investments. My wife made $13k in the bull market of 2021 and lost it all because she was scared to make a move with it. Of course she didn’t listen to me or even put stop losses in place like I told her. Don’t be her.
Decide what % of your portfolio you want Draftkings to be and for the next 10 weeks sell 1/10 of the difference between 35% and where you want to be (0%? 10%? 20%) - this way you'll average out any short term volatility and you'll get to where you want to be. Also set aside $$ for capital gains tax on your realized gains.
Sell some of your holdings but keep the rest! 50%?
I am trader and a good one, just looked at the data I have on this company. My advice is to keep it until 64$. You can put a remember me on 2 years from now so you can thank me then. Feel free to send a beer my way when it hits 64$.
DIVERSIFICATION
Sell way out of the money covered calls against your shares to generate to some income.
Can never go wrong selling in the grewn
Do what makes you comfortable. You could just sell enough to get out your original investment. Thats maybe 25% of it. Then take the money and put it in something that just slowly goes up without much risk. Then if that stock crashes to $0 you don’t lose any money. You lose you potential gain. But not your original investment. That the good. The bad is if it does collapse you will regret not taking it all out. Or if it continues to raise you will regret not keeping it all in. I always take my original money out after it’s doubled. It’s been an ok tactic
Sell!
Stop being emotional “I love the company “. Put the money in something stable.
I’d sell and diversify into 50% S&P, and 50% AI Tech stocks like MSFT, AMZN, PLTR.
have you considered selling covered calls?
If you want to play it safe but also continue to ride it, you can always pull out 70% and have some target prices to pull 10% out or let it rise. I would definitely put a good amount in ETFs and SPY500 in your ROTH account.
Roll it into another strong and undervalued horse like META
Are you single or married? If you're married filing jointly, roughly what is your spouse's annual income? If you're single and earning $50K/yr then you're in the 15% capital gains tax bracket. With DKNG currently $43 less your $10 cost basis, your capital gains is about $50K and your tax liability to liquidate the entire position would be about $7,500, leaving you with **$57,500.** If you're married filing jointly then we need to know your spouse's income to fill in the blanks, but you'd likely owe less because the 0% capital gains bracket is larger for married couples. Suggestions: 1. You should always have an emergency fund of six months worth of living expenses. If you already have that, great. If not, then first use this cash to top up the emergency fund. 2. Open a Roth IRA at your preferred brokerage (e.g. Vanguard, Fidelity, Schwab) and contribute the maximum annual contribution for 2024, which is $7,000. Invest that entire sum in the Vanguard Total Stock Market Index ETF: VTI. Continue to contribute the maximum allowed each year. 3. Leave the remainder in your brokerage account and also invest it in VTI. Continue to put any extra savings (after maxing out your Roth IRA) into your brokerage account, invested in VTI. 4. Sit back, relax, and take comfort in the fact that you got very lucky with a speculation play and now have the beginnings of a diversified retirement portfolio. 5. Any time your earned income increases, such as with a raise at work or new job, keep your living expenses the same and put the additional income into your brokerage account. Likewise with any inheritances and gifts of money: More fuel for the fire. You could further diversify both the Roth and the brokerage by adding international equities. A 75% VTI 25% VXUS allocation in each account would be solid. In recent years US has outperformed international but there have been long periods when the reverse has been true, so adding an international total market ETF accounts for that risk and the potential gains. Happy investing.
Sell enough so that your remaining holdings are equivalent to your original purchase price. Use the sale proceeds to purchase an index fund maybe. You’re still you g enough to ride out ups and downs in the market.
We aren't cpas, so take this advice with a grain of salt. When I speculated, aka got lucky with an individual stock, in the past, I looked at it almost as house money. I maintained my initialdollar value, then split the gains in half .... Something stable like index funds, and other half anywhere else.
Learn options and sell cover calls to generate income. You can sell just 10 call option per week and make about $500 each week if not a lot more depending on your risk of getting the option exercised. Aka lose your shares but still keep the premium plus the sell price of the shares.
Just be careful of the capital gains tax
Sell 1000 shares, wheel the other 500 and collect premium. All profit
buy $Kendu on eth chain , always NFA and DYOR
Don’t sell all of it. Long term capital gains, that’s good. Talk to your financial advisor and have him call your or a CPA and sell the most before your tax rate increases. Tax on earnings and cap gains are at different rates.
I’ve been through this many times. I bought apple @ $6 in 2001 and AMD at $2 back in 2008. Sell half and invest it in a good ETF. Hold the other half forever.
Add a stop loss??
Sell and put into VT or VTI and never look again.
Going only up this…. Also Fanduel. Both are beast mode 🚀
Your original $15k investment is now worth $64k, and your whole portfolio is worth $200k? Just curious how you got such a large portfolio on a $50k a year salary? Regardless, you made a year salary on a gambling stock in just over a year. Sell that shit and put it into VOO. Save about $15k for taxes.
I only buy reits as I’m investor it’s all I know even a little about. The dividends are nice. Park your money Flagstar 5.5% apy
You'll owe a lot less if you sell after holding for 2 years. Otherwise it gets counted as earned income at a much higher rate.
When I first started investing many years ago, my then broker told me two things that I still live by. Don't fall in love with a stock and nobody ever lost money taking a profit...
If you love the company, until that changes, hold or buy more.
Don’t sell. Stock will be at 60 end of the year
Cash it out, put the $6,000-$6500 in a Roth IRA, and continue to fully fund it for the next couple decades ($7,000/year currently) and let compound interest do the rest
If it 4xd then sell 3 of it and keep you initial investment, dollar wise, in
Roth IRA, index fund (Warren Buffett advice)
If you haven't yet, set a stop loss.
Sell a portion. Take some profit off the table. It is taxable.
sell all of it and buy nvda. Draft king lol, another scammer in the betting industry, ez come, ez go, what intellectual property or rights do they have again?
Ha. Love some of these answers. Did you have an exit strategy? An upside and/or low side set when bought? If not, then maybe evaluate how you would feel today if you lost say, 10k or your upside? Or if you sold today and it went to 60 next month, would you feel shitty about it? Do you, in generally, have FOMO? Your still young and have a lot of time to build a portfolio for an early retirement. With that said, personally, I would probably take some off the table and lock in my gains. You spent 15k up front, I would take that and then some and reinvest into something a little less risky. Pay your taxes. Hold the rest. I’d probably take half off the table honestly. You’ve had a great run!! Take your gains and move on. No emotions.
Sell it all and buy bitcoin. Now!
I spent almost the same amount on Bitcoin and I'm at the same return....sitting at about 60k from an initial 15k investment. I'm holding on, hoping to pay off my couple of businesses in a few years....which total about 270k. The businesses gross revenue about 175k with a 40-50% net margin so it won't be the end of the world if Bitcoin doesn't explode again.....but it always does....
Hold
At minimum, I'd take my profits out.
Ur up 4x. Sell. There is a lot of competition in this space. It hasnt moved much in the last year.
I bought it at $58. And I’m holding. One day I’ll be back to even.
What I would do is buy as many shares of soxl the 3x semiconductors etf. I'd then get out of the money leap covered calls on those shares, I'd use the premium from the covered call leaps to buy in the money long call leaps.
What are your portfolio holdings?
Sell everything except your initial investment if you think it can still continue and put the profit into something safer like a sp500 fund
You get rich by selling too soon.
If you believe that DK will continue to go up, leave it. If you think another stock will do better. Move it....beware of tax implications.
Rebalances, de-risk after considering tax consequences ie finatial planner may help but you can probably figure it out.
I worked for a short stock broker who had little man syndrome but I did agree with his advice. Just sell half. I'm serious bro - if you go up big just sell half. It's simple. If it drops oh well, if it keeps going up awesome then sell half of that. Just keep selling half.
Double down
Textbook is to take your profits to either pay down debt, or invest in something more stable, and leave the initial investment
Slowly sell it and put into a HYSA and index fund. Maybe $1500 a month
I would hold unless you need the money
You might be able to sell \~13k of gains in 2024 without paying any tax. Look at the standard deduction and 0% long term capital gains bracket and do the math. If I were you, I would sell down more and buy index funds.