Investing General Discussion
- Thread starter Furious
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TheBeagle
JunkiesNetwork Donor
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This has been all over the socials for a few days now. People have been saying to stop buying SLV and buy PSLV and others instead (and physical.)
Check out ASM this morning.
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I ate a pair of 12.5 puts because I didn't close a 0.1 contract on expiration day ...... never again
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Arden
Blackwing Lair Raider
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So just from reading the last few pages:
1. SPACs are shell companies that exist to fund a merger or acquisition.
2. The have a floor of about 10$.
3. When the rumor that the SPAC has been attached to a good merger or acquisition hits, the SPAC can surge 20%+.
4. When it surges, you sell before the actual merger/acquisition.
5. All of this usually takes place in a predetermined window of time (2 years maybe?).
6. We should be targeting SPACs that have reputable managers (not sure the best way to figure that out).
What did I get wrong?
1. SPACs are shell companies that exist to fund a merger or acquisition.
2. The have a floor of about 10$.
3. When the rumor that the SPAC has been attached to a good merger or acquisition hits, the SPAC can surge 20%+.
4. When it surges, you sell before the actual merger/acquisition.
5. All of this usually takes place in a predetermined window of time (2 years maybe?).
6. We should be targeting SPACs that have reputable managers (not sure the best way to figure that out).
What did I get wrong?
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I doubled down. Just think if the law suites get thrown out? mooooon
This week should be interesting, like a lot here I am loading more on spacs and dollar cost averaging on shit that dropped.
Also Cruises are ALMOST within range of me jumping back into them. They were a early play for me last year that I got out of (along with airlines) at the first big "vaccine 95 percent effective!" announcement. Airlines have not fallen enough for me, not enough swing back up for them for me to tie money up with.
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LachiusTZ
Rogue Deathwalker Box
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I have zero basis in my remaining TRIT
Just trying to assuage my sad from profits getting shook out of my paper hands
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Assuming you have at least 100 shares, sell covered calls above your cost basis and make some cash while you wait. its IV is still really high and you can get back to zero pretty quick. I would sell the 15's and lose the dime over the 12.5, but selling the 12.5 if you can get 40 cents is solid.
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Basically correct. There is a ton of really good info on SPACs in this thread that would be worth reading if you intend to dip your toe in the water.
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Fogel
Mr. Poopybutthole
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For point #5, spacs have 2 years to find a company to buy, after they they dissolve the company and give you your 10$ back. The good spacs usually don't make it past a year before they have the first announcement/rumor
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Does not take nearly as long as 2 years. And you got to decide for yourself when to sell, but anytime after 30 percent is fine. Some do very well post merger (LAZR, HIMS, QS, etc)
I have to decide what to do with THCB now. I'm up well over 100 percent (bought in November, and that was considerded a "very long hold" in the spac world by the way). Is microvast the next QS (stock went to over 100 after merger..)??
This is the game we are playing.
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I keep thinking about getting back in because I love the fundamental concept of the company. Its the potential fraud part that stops me.
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You didnt get anything wrong.
Thats the whole game.
I guess it can take up 2 years but my timelines for exiting and entering are more like 2 months max. Also, i look for it to hit $25+/share before i cash out, i think that as close to the ceiling (with decent trading volume to unload your position easily) as you can get. So it should be more like a 100% return assuming you bought in low teens than a 20% return
Fogel
Mr. Poopybutthole
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I sold my THCB in early hours for 24, dipped to 22 already. It'll go up and down through out the day and I feel it'll trade along with the other big EV plays like NGA/RMO/STPK/CCII etc
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All I will say is anytime you are over 100% profit on a SPAC you REALLY need to examine your due diligence on the company and see if it justifies holding it further.