Author Topic: Big Money Making Opportunity  (Read 5415 times)

Gregmal

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Re: Big Money Making Opportunity
« Reply #20 on: September 19, 2018, 04:59:37 AM »
Insanity LOL $220


globalfinancepartners

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Re: Big Money Making Opportunity
« Reply #21 on: September 19, 2018, 05:26:25 AM »
Yes - wow, at 235 a share on Tilray someone is getting killed here. 

globalfinancepartners

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Re: Big Money Making Opportunity
« Reply #22 on: September 19, 2018, 05:29:41 AM »
Shorting these sorts of manias is one of the fastest ways to blow up an account. If you do want to short calls, please use spreads, otherwise this sort of move can lead to ruin.


Sound advice here!  Ian I remember you from several years ago when you authored an article on Yongye International - I think you were pretty young at the time.  I had investigated that company, including on the ground in China.  It was shady.  Went private at $7.10.

Ghost

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Re: Big Money Making Opportunity
« Reply #23 on: September 19, 2018, 05:52:37 AM »
wow...look at this go. 
Interesting to watch.

Gregmal

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Re: Big Money Making Opportunity
« Reply #24 on: September 19, 2018, 07:08:29 AM »
I guess one of the more interesting aspects here is this. If you're getting 30% a month, or even more in some cases, doesn't that incentivize people to hold even further? INcredible stuff here

IanBezek

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Re: Big Money Making Opportunity
« Reply #25 on: September 19, 2018, 07:59:17 AM »
Shorting these sorts of manias is one of the fastest ways to blow up an account. If you do want to short calls, please use spreads, otherwise this sort of move can lead to ruin.


Sound advice here!  Ian I remember you from several years ago when you authored an article on Yongye International - I think you were pretty young at the time.  I had investigated that company, including on the ground in China.  It was shady.  Went private at $7.10.

I think they bought a zero, but we'll probably never know. As for my age, I'm 29 now, so I was quite young back in 2011.

siddharth18

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Re: Big Money Making Opportunity
« Reply #26 on: September 19, 2018, 11:40:42 AM »
Anyone looking at bear put spreads on $TLRY?

IanBezek

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Re: Big Money Making Opportunity
« Reply #27 on: September 19, 2018, 11:46:38 AM »
For October near the money, say 230/240, it costs about $8 to make $2 if you get a fill at the midpoint. Not much reward.

Gregmal

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Re: Big Money Making Opportunity
« Reply #28 on: September 19, 2018, 11:56:01 AM »
Yea I think it's really tough to work something with the puts in terms of a purchase. They're just way too expensive. IMO the money is in selling the options, whether it be puts, or calls, or both, especially if you can trade around in the stock and also collect some of the rebate. I believe there are now 2020 options available. Was told the borrow today was near 80% a month. Just incredible. Makes the Volkswagen squeeze look like child's play. This has a $25B valuation on 23M in sales.

hillfronter83

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Re: Big Money Making Opportunity
« Reply #29 on: September 21, 2018, 06:52:06 AM »
Buy the stock to lend, sell the call.

Let's use the Mar'19 30-strike Call as it has more volume. You're exposed below:

Stock Price - Call Premium - Interest received

120 - 89 - 6 months of borrow

In the worst case, you'll need to make $30 in borrow between now and March 19 to break even if the stock goes to zero. Anything else is gravy.

I suspect the call buyer would exercise the call immediately, so you wouldn't get the chance to lend your stock.

This is indeed what happened. Looks like my shares were called.