Investing General Discussion

Fogel · Dec 8, 2020

LAZR could have at least waited a day for my $15 strike puts to be bought out for a couple pennies before it tanked

Sanrith Descartes · Dec 8, 2020

Sanrith Descartes said:
As of close of business Friday I have the vast majority of my cash position (about 35k) put to work on options plays. My strategy is pretty simple. Stick to stocks I understand and know, stay on the sell side, and use short strangles on stocks I already own. I am also putting a focus on return on capital. I am tying up cash on the put orders (I dont trade on margin, so its all cash or stock covered option plays) until they expire/close so I am looking at the return on capital while it is tied up to help make the best choice among various possibilities. Here is what I am currently running.
ps.. A short strangle is where you sell puts and covered calls on a stock you own using the same expiry for both. So long as it stays in the range I win on both trades (collecting premium top and bottom). If it breaks the strike top or bottom, I win on the opposite play and can either roll or take the assignment. Since I already own the stock I am comfortable getting more of it at a cheap price. If I choose to let them take it then I sell for a hefty profit.

NIO $27 strike puts expiry 12/18 at 0.50 premium
HYLN $15 strike puts expiry 12/18 at 0.65 premium
MP $12.50 strike puts expiry 12/18 at 0.40 premium (bought to close late Friday at 5 cents. Profit 35 cents)
GMHI (Short Strangle) $10 strike puts expiry 12/18 at 0.70 premium and $20 strike covered calls expiry 12/18 at 0.90 premium
TRIT (Short Strangle) $10 strike puts expiry 12/18 at 0.27 premium and $15 strike covered calls expiry 12/18 at 0.20 premium
PLTR (Short Strangle) $14 strike puts expiry 12/18 at 0.50 premium and $35 strike covered calls expiry 12/18 at 0.35 premium
PLTR (additional puts) $18 strike puts expiry 12/18 at 0.65 premium
VLDR $15 strike puts expiry 12/18 at 0.95 premium
PSTH $22.5 strike puts expiry 1/15 at 0.95 premium
DAL $37 strike covered calls expiry 12/4 at $1.45 premium (I expect to roll these out and up on Friday if it stays in the money)

On the cash covered puts I ran a 4.02% return on capital (collected premium/cash to cover). Except for the PSTH everything expires 12/18 so by then I close and reload for the next set of moves.

All my puts are closed as of this morning (except for the TRIT put which will go to expiry due to lack of volume) I had added a few more after I wrote this original post. Total profit was $1310 after buying to close instead of waiting to expire. Kept them open for about 3 weeks. Return on capital ended up at about 3.4% (cash to cover was 36k). Most of the calls are still open and will probably run to expiry.

Sanrith Descartes · Dec 8, 2020

DIS is rolling multiple 52 highs all while their California parks and hotels are closed. Cant wait for the stock to jump when they finally open Cali up.

Indyocracy · Dec 8, 2020

Sanrith Descartes said:
Because quality SPACs are a good investment in my mind. I am willing to put my money behind Peter Thiel..

Billionaire Richard Li Teams Up With Peter Thiel on SPAC Bet

(Bloomberg) -- Billionaire Richard Li, who broke away from his famous father Li Ka-shing decades ago to build his own business empire, is taking a page out of his dad’s playbook by further expanding outside Hong Kong.Since last year, the younger Li has stepped up investment in Southeast Asia...

finance.yahoo.com

I'm in, keep the SPAC train coming

Sanrith Descartes · Dec 8, 2020

Indyocracy said:
I'm in, keep the SPAC train coming

They dont have a merger target yet, the units just split. This will be a long investment probably 3-6 months. I expect it to drop down in the 10's as people get bored of waiting.

Fogel · Dec 8, 2020

If someone had a 20% stop loss on LAZR it would have triggered today

Sanrith Descartes · Dec 8, 2020

Fogel said:
If someone had a 20% stop loss on LAZR it would have triggered today

I don't see a scenario where this ends well today..

Fogel · Dec 8, 2020

MP has been flying under the radar with all the talk of PLTR/LAZR, they're currently up to 27. I had sold at 19 but have still been selling puts on them.

Sanrith Descartes · Dec 8, 2020

Fogel said:
MP has been flying under the radar with all the talk of PLTR/LAZR, they're currently up to 26. I had sold at 19 but have still been selling puts on them.

I like MP but its not going to be some monster company. its a miner. I like it in the 15-17.50 range so I am being patient about buying back in.

Fogel · Dec 8, 2020

If VLDR is a look into the future of what happens with LAZR

Locnar · Dec 8, 2020

what about the third lidar spac: IPV?

Fogel · Dec 8, 2020

Locnar said:
what about the third lidar spac: IPV?

I was reading about them just now, read my mind! They're merging with aeva who already has a deal with volkswagon

Sanrith Descartes · Dec 8, 2020

Fogel said:
If VLDR is a look into the future of what happens with LAZR

View attachment 322184

SPACs follow a pattern. They merger with a specific valuation, the Robinhooders drive it up crazy trying to break the bank and then they leave and it drops back to more reasonable valuations. Then you have to factor dilution with the warrants and PIPE and Founder shares.

Sanrith Descartes · Dec 8, 2020

Locnar said:
what about the third lidar spac: IPV?

I missed the entry on that one.

Fogel · Dec 8, 2020

Sanrith Descartes said:
I missed the entry on that one.

The merger hasnt completed though, so technically the entry is still there, just not as much upside.

Sanrith Descartes · Dec 8, 2020

Fogel said:
The merger hasnt completed though, so technically the entry is still there, just not as much upside.

I try to limit my entry into SPACs at under $11 to minimize risk.

sadris · Dec 8, 2020

Sanrith Descartes said:
DIS is rolling multiple 52 highs all while their California parks and hotels are closed. Cant wait for the stock to jump when they finally open Cali up.

I've been selling ATM DIS puts all year. Doubled my roth in 9 months.

Sanrith Descartes · Dec 8, 2020

Reading tweets about people going in on LAZR at $38 because its got upside to $48 makes be both laugh and cry at the same

edit: No offense to anyone here if you are the owner of those tweets.

Flobee · Dec 8, 2020

Sanrith Descartes said:
Reading tweets about people going in on LAZR at $38 because its got upside to $48 makes be both laugh and cry at the same

edit: No offense to anyone here if you are the owner of those tweets.

Someone has to buy the bags

Sanrith Descartes · Dec 8, 2020

T up almost 5% after the CEO came out and said "No, not a mistake. All of our 2021 films are going straight to HBO Max".

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