SPAC & IPO Ideas

Sanrith Descartes

Log Wizard
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So, if I had bought a Call of BTNB @ 10.30 strike, how would that differ from me simply buying it @ 10.30?

When I buy it outright I’m just getting X amount of shares.

With a call I’m buying 100 shares and get some sort of premium right?
No.
1. Don't trade options until you understand them.
2. The option has an expiry. Up until that expiry you have the right to buy those shares at the strike. There should be no strike of 10.30. 10, 12.5 and 15 most likely. The time between now and the expiry has value.
3. Friends don't let friends buy call options. If you really wanted the stock, sell the 12.50 strike with a short expiry. It either hits or it don't. If you really, really want the stock sell the 15 strike put expiring on the 19th. I don't advise this move.
4. Be patient and wait for it to come down in price. If it doesn't, there are 400 more SPACs to look at.
 
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Blazin

Creative Title
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So, if I had bought a Call of BTNB @ 10.30 strike, how would that differ from me simply buying it @ 10.30?

When I buy it outright I’m just getting X amount of shares.

With a call I’m buying 100 shares and get some sort of premium right?

I'll have call example in options thread today! Don't know if my Put example there now helps answer your question of the difference of using option vs the equity.
 
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Tmac

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No.
1. Don't trade options until you understand them.
2. The option has an expiry. Up until that expiry you have the right to buy those shares at the strike. There should be no strike of 10.30. 10, 12.5 and 15 most likely. The time between now and the expiry has value.
3. Friends don't let friends buy call options. If you really wanted the stock, sell the 12.50 strike with a short expiry. It either hits or it don't. If you really, really want the stock sell the 15 strike put expiring on the 19th. I don't advise this move.
4. Be patient and wait for it to come down in price. If it doesn't, there are 400 more SPACs to look at.
I don't mean now, I meant initially when I bought. I'm trying to understand the applications of puts and calls based on what I've already done. Like how could I have used options at a strike of 10.30 initially instead of just buying the stock outright like I did and how would that have changed my current situation?

I'm not going to use calls or puts until I understand them, which I do not.
 

Tmac

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If you're buying the call, you're paying someone the premium for the right to buy BTNB at the date the call expires for the strike price of the call.

Okay, so selling a call creates a premium and buying a put creates a premium?

A call sell and a put buy are bullish?
 

Fogel

Mr. Poopybutthole
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Okay, so selling a call creates a premium and buying a put creates a premium?

A call sell and a put buy are bullish?
Selling puts are bullish, buying puts are bearish. Selling options both calls/puts is when you receive the premium, buying options is when you pay the premium.
 

Sanrith Descartes

Log Wizard
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Whats the current word on targets? I'm eyeing up the juicy call option premium
el-oh-el on current target. No one knows. Lots of folks think it will be Stripe and that is why the price run up. Some folks think its Bloomberg. Some Chick-fil-A. A few think he is trying to snake Lucid motors from CCIV. Some think it might be SpaceX or Starlink spin-off. Pershing has its investor call on the 18th and any feel there will be an announcement prior to the call. No one has any idea.

I got 1.20 premium selling the $22.50 puts expiring in March. This thing has a $20 Nav. It was almost free money.
 
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Jysin

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Kicking myself not loading up more of this around ~25.50 a couple weeks back (PSTH).
 

Alex

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Figure this is the thread for this.

The company I work for is very likely to go public this year. All indications from leadership point to this. I have a ton of faith in the company and I think our IPO will be a great success. I'm no doubt going to buy my shares. But I find a lot of conflicting information about when to purchase my shares. I've heard you should never purchase until after you go public but I've also heard purchasing them ahead of time leaves you in a much better tax situation. Anyone have experience with this?
 

Sanrith Descartes

Log Wizard
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Figure this is the thread for this.

The company I work for is very likely to go public this year. All indications from leadership point to this. I have a ton of faith in the company and I think our IPO will be a great success. I'm no doubt going to buy my shares. But I find a lot of conflicting information about when to purchase my shares. I've heard you should never purchase until after you go public but I've also heard purchasing them ahead of time leaves you in a much better tax situation. Anyone have experience with this?

For anything tax related discuss with a CPA. Don't trust people on the internet for stuff like this. A $100 or $200 conversation can save you thousands or more.
 

Alex

Still a Music Elitist
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For anything tax related discuss with a CPA. Don't trust people on the internet for stuff like this. A $100 or $200 conversation can save you thousands or more.

Yeah that's the right idea. Gonna get someone to do my taxes this year for me anyway. The official WFH status has probably led to a lot of itemizations that I haven't even thought about.
 

Sanrith Descartes

Log Wizard
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Yeah that's the right idea. Gonna get someone to do my taxes this year for me anyway. The official WFH status has probably led to a lot of itemizations that I haven't even thought about.
In that case, shop around. My wife is a CPA/MBA and has a bookkeeping and accounting business. The market price is what people will pay. Also be advised prices go up as we are in tax season now. Its worth making 4 or 5 calls around to save 50 or 100$ or more.
 
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Sanrith Descartes

Log Wizard
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Bought some NSTB units today at 10.90. These guys have a reputation for making quick deals.
Grabbed some JWSM/U at 10.70. I dont expect it to moon based on the two guys (Hotels and cell phone background) but should be safe for a 30-50% pop at some point. Over 1b in escrow. I am hunting the big SPACs right now when I see them sub $11