The stock is ‘cheap.’
If I lose money on this trade, I promise to Periscope throwing myself down a flight of stairs.
Get some faggot flavored water and then enjoy an ejaculation of profits all over your face.
If you enjoy the content at iBankCoin, please follow us on Twitter
Fine, I’ll bite too.
the carrots or the stock?
Both. Also, Lithium en fuego otra vez
Which lithium plays you like, SQM? Some mentioned some esoteric ones in Exodus.
Not many options. SQM ALB LIT. LIT primary holding is SQM, though.
Topo was such a great steal for KO. Pocket change $220m
Way to jinx fizz with the top tick post lol
This bounced nicely off support, even if you’re wrong it’s an easy trade to manage downside here.
These pop up videos from Time on the website have gots to go…..super annoying
Get the app ya fuckin cheapskate
If the play is a buyout, why not sell Jan puts at the money for 8.50 and buy same amount nominally nov $150 calls .35 – you have 24x exposure to the upside same risk whatever you’re taking to the downside. Jan $150 calls are little over a buck so can also get 8x upside. I did this for NFLX when it was trading at $100, looking for Apple buyout, still worked out in the end.
I must be a noob. How do two leveraged long positions have the same downside risk as owning common stock?
Sell puts in the amount of position you can handle the downside risk i.e. what you’re ok with long stock, and then with that premium buy calls out of the money. You’re not looking to make 10% right, you’re looking for a buyout.
In this case, if you sell puts for 1000 shares exposure, you can get 24 thousand shares exposure to the upside on a buyout above your strike. You’re comfortable owning the shares from the price you’ve sold your puts. If Fizz goes down $10 bucks you lose 10k, you’re fine, you’re long stock from where you still like it, and it can still get bought or perform well in the mid term. If it gets bought for 180-240, you’re long 24 thousand shares from 150.
Timing is important on this trade, and it is a calendar trade, selling longer dated puts and buying shorter date calls. Low probability, but can payoff handsomely. Ideal for this mkt with cheap volatility.
Also you can just keep buying the out of the money calls and not worry about any exposure, simpler.