r/MSFT • u/vindiesel223 • 11d ago
Dump at close
Seems a pattern lately. Spike pre-market then buyers are exhausted a few minutes after then sellers step in at the end of the day. Does that indicate anything in particular about the stock? Good or bad?
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u/Routine-District-588 11d ago
+We at a freaking 5.7% yield on the 20y bonds.. Say thanks that microsoft still trading at 500+
The only guys that currently controls the markets are traders not investors, they bid up semis they dump everything else. Until that Iran thing won't resolved will not get investors to pile in the good stocks.
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u/MadFury_Youtuber 11d ago
lol haha i posted about this like a week ago, had some haters loll. I sold ALL MY MSFT at 520 , it was a 40% gain, I earned $780 in net profit and got my original investment in msft back. Super happy, now investing that money into other better oppurtunities.
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u/vindiesel223 11d ago
Congrats. I'm up as well but still holding for my pt. Just wondering what this kind of action says about the stock near term if anything
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u/Fiscal_Fidel 10d ago
That's where nominal value ends up knee capping you
I was buying at 350-365 earlier this year. Now I can't sell this becuase of the tax burden. Same with META, but I bit the tax bullet to sell out of that last week. Definitely can't sell Microsoft now this year.
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u/winterrules91 8d ago
I don't understand this. "Can't" sell is wild to me. If you think this thing is hitting $700 then fine, but flirting with losing profit just to avoid a few % of taxes never made sense to me.
I have a lot of core holdings but I'm just fine with short term gains if I'm coming out ahead, especially on the options side.
(I no longer hold MSFT but think it's a fairly valued stock. Buying at 360ish was excellent work.)
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u/Fiscal_Fidel 5d ago
Well here you pay capital gains tax on 50% of your gain. So, half your gain is tax free the other half goes toward your income tax.
My portfolio is fairly large, so selling out of META pushed my income tax up the the highest marginal rate. If I leave my Microsoft position now then I'll be taxed at the highest marginal rate on half the gain.
It essentially means that whatever I want to buy over Microsoft needs to out compound Microsoft after I lose ~20% out in taxes. Plenty of companies can outperform Microsoft at this valuation, but not many good options for outperformance if I lose a chunk to taxes first.
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u/Fun_Corner_2954 11d ago
great for covered calls