Tag: finance

• no margin
• no short
• no investment in what I am not familiar with
• no IPO until lock up expiration
• no Chinese companies

• Power of Attorney (26 Sep 2022)
  

  The term power of attorney (POA) refers to a legal authorization that gives a designated person the power to act for someone else. As such, a POA gives the agent or attorney-in-fact the authority to act on behalf of the principal. The agent may be given broad or limited authority to make decisions about the principal’s property, finances, investments, or medical care.

• Securities-Based Lending (20 Jun 2021)
  

  Securities-Based Lending or 股权质押 refers to the practice of making loans using securities as collateral. Securities-based lending provides ready access to capital that can be used for almost any purpose such as buying real estate, purchasing property like jewelry or a sports car, or investing in a business. The only restrictions to this kind of lending are other securities-based transactions like buying shares or repaying a margin loan.

• Optimal Option Strike Price vs Future Price (15 May 2021)
  

  This post we studies the profit of call options for different strike price and price change. The goal is for the given current price and volacity level, expiration date and ticket, find the most profitable strike price for different future price change. Please read Option Pricing Model for background knowledge the option pricing.

• Operating Expense vs Capital Expense (28 Apr 2021)
  

  An operating expense (OPEX) is an expense required for the day-to-day functioning of a business. In contrast, a capital expense (CAPEX) is an expense a business incurs to create a benefit in the future. Operating expenses and capital expenses are treated quite differently for accounting and tax purposes. This note is based on my reading of The Difference Between an Operating Expense vs. a Capital Expense

• Comparing Redfin, Zillow and OpenDoor (18 Apr 2021)
  

  This post compares three stocks in estate: Redfin, Zillow and OpenDoor. I try to use the their 2020’s earning report for my analysis.

• Test Drive of VolksWagan ID 4 and Ford Mach E (31 Mar 2021)
  

  As Tesla stock owner, I decided to have a test drive VolksWagon ID 4 and Ford Mach E to evaluate my long position in Tesla. I am located in San Jose bay area. My experience is both cars are very good car and their experiences significantly reduce the transition efforts from gaosline to EV, compared with Tesla. Instead of being a risk to Tesla (at least for coming few years), I would say it is a risk to other models of Volkswagon and Ford.

• Compute Discounted Cash Flow for Buying a House as Investment (20 Mar 2021)
  

  In this post, I apply DCF to evaluate whether it is a good idea to buy a house as investment. Here I use the numbers for a typical townhouse in bay area. Based on my analysis here, it may not be a good investment to buy a house for rent in Bay area–it could take more than 40 years to pay back your investment from rent, if doesn’t consider the value of selling house at the end of investment period. This could be even worse, if you could not use mortgage when buying the house.

• Difference between Us Business Entities (14 Mar 2021)
  

  This is my reading note for C Corp vs. S Corp, Partnership, Proprietorship, and LLC: What Is the Best Business Entity?. You may consider to create a business probably to save some tax. There are different type of busniess entities in US and you should understand the differences between them before decide which type to choose.

• Get Option Data from Yahoo with Pandas (16 Feb 2021)
  

  This notebook shows how to read the option chain data from Yahoo finance with Pandas. Especially we will use pandas.read_html.

• Option Pricing Model (07 Feb 2021)
  

  The price of option depends on many factors, current stock price, strike price, implied volatility and expiration date. According to Investopedia, the most common pricing model is Black Scholes Model. Howerver, it does not take into account the execution of American Style options, which can be exercised at any time before, and including the day of, expiration, for which Binomial Option Pricing Model should be used.

• Price Earning Ratio (30 Jan 2021)
  

  Most people know price earning ratio (P/E ratio or PE) and use it a way of value whether the stock is over-valued or not.

• How to Evaluate a Company for Investment (03 Jan 2021)
  

  This article is mostly based on my understanding of 段永平投资问答录 and The Essays of Warren Buffett: Lessons for Investors and Managers. Both books recommends value investing and their authors have been very successful in their investment.

• Why Backdoor Conversion to Roth (31 Dec 2020)
  

  I have heard about recommendations of converting regular traditional IRA/401K to Roth via backdoor. After reading an internal post from company I finally understood why.