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Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
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Closed out the PLTR $21.50 puts I opened on Weds for 2 cents. 97% profit for 2 days hold.
 

Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
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Took advantage of the green gap up in PSTH for close out my puts for 30 cents. Made a 70 cent profit on the trade.
 

Rangoth

Blackwing Lair Raider
1,530
1,644
Good article! But I can’t agree with the closing line. I think it will just mean new hedge funds will form and rethink the approach to investing and hedging in general.
 

Sanrith Descartes

Veteran of a thousand threadban wars
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Good article! But I can’t agree with the closing line. I think it will just mean new hedge funds will form and rethink the approach to investing and hedging in general.
Some will. Maybe not all. Some will fail to adapt and implode. Its just what they do.
 

Sanrith Descartes

Veteran of a thousand threadban wars
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Closed out my CCIV puts for a small profit. Considering how underwater they were two weeks ago I am happy to walk with a 15% profit on the trade. Right now I dont feel confident predicting the SPAC world between now and 4/16 expiry.

Then it of course spikes another 3% on the rumor Biden wants a 10k electric vehicle tax credit.
 
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Pogi.G

Silver Baronet of the Realm
1,528
7,840
I have only made three options plays besides the one below. One was pfizer that I pretty much fucked myself on calls after vaccine news. I like to view it as a learning experience. The other one was Kodak when I loaded puts on the back side of that massive squeeze back in August. Did pretty well there. I have 1 put on GME at $120 for April 16th that was a yolo, but I was and still 99% sure that GME is going back to sub $50. Disclaimer: This is not a yolo play and represents a small % of my trading account that I don't mind being wrong on while still learning the options game. That said, what do y'all think of my reasoning behind the play?

$SPRT Support.com had news come in that they were going to have a merger with a BTC mining company that has it's own power plant called Greenidge which is not public yet. When they did go public after the merger, $SPRT stock would be converted to Greenidge at essentially 8 $SPRT shares to 1 Greenidge. The merger would not take place at least until quarter three and $SPRT would only get 8% of the total shares. $SPRT share prices shot to almost $10 on Monday after a very stagnant hovering around $2 for almost a year and pulled back closing on Monday at $7.10.

Diving deeper into the math of the merger at what was the current price of $SPRT at the time I looked was $6.47ish Monday afternoon. If Greenidge was only giving .124 of a share for every share of $SPRT, that would imply that Greenidge share price would be somewhere in the neighborhood of of $52. $SPRT total shares float was 19.24 million which would equal about 2.3 million shares of Greenidge after the merger and that 2.3 million shares representing 8% of the total shares would put Greenidge expected total number of shares at 29.82 million. Multiply that by the $52 and you get an estimated market cap of $1.55 billion dollars.

The issue that I found was that Greenidge only mined 1,186 BTC YTD as of Feb. 28th. At that time, BTC was trading at $56,000. Multiply that by the number of coins mined, and you get 67.4 million(far less than this because BTC wasn't trading at 56k for the last year) in revenue before operating costs. That is a looooong way off from deserving a $1.55 billion dollar market cap and makes $SPRT's value nowhere near where it has been trading at. (And yes, I understand that this is a clown market, and the shit could go to Jupiter.)

All that said, I bought 20 put contracts Monday afternoon at a strike of $4 with expiry of April 21st. Like most of these types of plays that run up retarded fast on FOMO, I fully expect to see this trading back at the $2 norm well before April 21st as well as everything I said above. I just don't see either of these companies being worth that much before they even get started.

Chart.

View attachment 344187
Update: Prolly fucked myself on the 1 GME put and should have sold when it hit $120. YOLO!

$SPRT - It can't break and hold above $5 but not really dropping below $4.50 either. Time will tell on this one. Even if I let it expire worthless, I will still be up about 85% overall on the ticker from my short plays on the way down from the top.
 

Sanrith Descartes

Veteran of a thousand threadban wars
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Update: Prolly fucked myself on the 1 GME put and should have sold when it hit $120. YOLO!

$SPRT - It can't break and hold above $5 but not really dropping below $4.50 either. Time will tell on this one. Even if I let it expire worthless, I will still be up about 85% overall on the ticker from my short plays on the way down from the top.
Mr. Market can remain insane longer than you can remain solvent. Its the #1 reason I stick to the sell side of options. The odds are more in my favor.
 
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Sanrith Descartes

Veteran of a thousand threadban wars
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Closed out some MP puts for small gains (20%) and BTWN (55%). Taking some chips off the board in the green for now.

edit: PLTR puts closed for 25% gain.
 
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Fogel

Mr. Poopybutthole
11,927
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I noticed you buy out your puts a lot earlier than me. Have you thought about how commissions affect your profit margin when you're dealing in smaller gains? I was looking at smaller stocks for puts for example but the higher % was offset by the commission taking a larger proportional bite out of the premium
 

Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
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107,244
I noticed you buy out your puts a lot earlier than me. Have you thought about how commissions affect your profit margin when you're dealing in smaller gains? I was looking at smaller stocks for puts for example but the higher % was offset by the commission taking a larger proportional bite out of the premium
Yes. I dont "normally" close them out this early, but I cant get a firm read on the next few weeks at the moment for the SPAC/meme stocks and that is the bulk of my current puts outstanding. I dont even look at my KO options :p .

On Fidelity I pay 65 cents per contract to trade them and that is waived if the close price is under 10 cents. I calculate that cost into my profits.
 

Fogel

Mr. Poopybutthole
11,927
42,453
Sold more CLSK puts 5/21 17.5 strike 1.30 premium. Might get assigned on my 22.5 4/16 but I had 4.05 premium on that and it's at 21.5 right now, so my cost basis would be 17.5
 
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Sanrith Descartes

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I only have VLDR and LAZR puts still open (plus KO covered calls). I dont see a clear path forward at the moment so I think I will sit on the cash or maybe use it on low beta stock puts (like the KO) for now.
 

Sanrith Descartes

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VLDR currently has 20,000+ call contracts expiring this week out of the money. I wonder if some fund has a bunch of those and decides to manipulate the stock upwards so they dont expire worthless. I can hope.
 

Sanrith Descartes

Veteran of a thousand threadban wars
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KO covered calls expiring Friday at $52.50 strike. Currently at $52.96. Got 60 cent premium so $53.10 is the break even if assigned.

VLDR puts expiring Friday at $20 strike. Currently at $13.46. Got $4.05 premium after the roll so break even is $15.95. This is going to be a suck it up and take the assignment unless something crazy happens the next 3 days.

BTWN puts expiring Friday at $12.50. Currently at $10.82. Got $2.10 premium so breakeven is $10.40 if assigned.
 
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Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
41,352
107,244
Seems like our base of people trading options has dwindled, but I am going to throw this out there anyway. We rarely talk about it but spreads on options can be critical if you arent holding through expiry. Its easy to calculate rolls and exits when the spread is 1 - 5 cents. It gets a whole lot tougher when the spread is 50 - 75 cents. Always look at the open interest and volume of the strikes. If everyone bails out on the strike you are trading the spreads are going to widen as the interest drops.