This is not at all scientific, but here’s my method, and it’s simple and has been working, more or less what Fogel said. See what’s being hyped here, on SPACS on Reddit (there are numerous subreddits regarding them,) Stocktwits (awful site with crummy people but good for seeing what’s hyped,) and whatever other sources you can find. Find whatever people are rambling about. Ideally this is a SPAC not incredibly far from merger, and not much more than $12 at the most.
Wait for near merger day, sell for $1-5 a share profit before merger. That’s really all there is to it. Occasionally you get lucky and buy a $10-11 SPAC that gets hot rumors and quickly runs up to $15 plus even well before merger.
If you buy at $10-11 based on a rumor mill and lots of buzz, even if it doesn’t go anywhere, you’re not losing anything — that’s the beauty of it. It’s not like a normal stock where you might buy it at $10 and the hype leaves and it drops down to $3 or something. That can’t happen with SPACs, there’s a built in safety net.
I frequently throw a few thousand dollars at these things, and if it doesn’t move in a week or two I just dump it and move on. Occasionally walk away with $100-200 or sometimes lose $100-200 if I get inpatient on those but I’m still way in the green around 20 percent on the past year.
