How do I get over my average price? I’m long on Cloudflare and am up 100+%. I recently received a bonus and want to allocate some of it to the stock, but it would severely increase my average price.

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Posting as :
works at
You are currently posting as works at

Maybe I’m just a noob but I didn’t understand what you just said

Average price = total equity/number shares

Effectively what you’re asking is if I put in more money to these shares, am I buying a higher price? Yes. What does that mean, well it means if the price goes up, you make more on the earlier shares and less on the later shares.

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If it's really important to you just look at the lot level details and pretend they are two separate investments. Your original shares will still show the 100% return and your new shares will show 0% to start.

Lots are the just a grouping of shares you purchased at X price. Using cloud flare as an example. Say you bought $1k worth of NET at $30/share (lot 1) and another $1k worth of NET AT $35/share (lot 2). Those are 2 different lots. Net is currently around $42/share. So, lot 1 is up 40%, lot 2 is up 20%, but your total investment in NET is up 30%.

helpful

You can also buy an equivalent amount of long term call options. By equivalent I mean if you are looking at buying 1000 more shares, 10 contracts.

This is a fix for a problem that doesn’t actually exist

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