Author Topic: Do you have the balls?  (Read 18498 times)

stahleyp

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Re: Do you have the balls?
« Reply #70 on: March 19, 2020, 02:28:36 PM »
Eric,

How are you positioned now?

At-the-money calls, out-of-the-money calls, and cash.  I will have a lot of cash at some point here, because of a full redemption at Dec 31st prices -- still waiting for the audit to complete before releasing the cash to me.

Thanks. What percent of cash will you have once the redemption pays out? I'm getting more bullish but willing to listen to counter views.
Paul


ERICOPOLY

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Re: Do you have the balls?
« Reply #71 on: March 19, 2020, 03:01:13 PM »
Eric,

How are you positioned now?

At-the-money calls, out-of-the-money calls, and cash.  I will have a lot of cash at some point here, because of a full redemption at Dec 31st prices -- still waiting for the audit to complete before releasing the cash to me.

Thanks. What percent of cash will you have once the redemption pays out? I'm getting more bullish but willing to listen to counter views.

If prices remain steady, about 63% cash, or 80% if I count the Dhandho that I expect to be liquidating at some point between now and 2022 expiry.  If that liquidation drags out I will keep rolling those calls if necessary.

I am mulling over the idea of building cash over next 19 months by writing out-of-the-money puts month to month.  That will either build cash or accomplish my desire of a lower entry point. 


« Last Edit: March 19, 2020, 03:06:45 PM by ERICOPOLY »

enoch01

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Re: Do you have the balls?
« Reply #72 on: March 19, 2020, 03:08:04 PM »
how ballsy does one need to be to sell volatility currently?

ERICOPOLY

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Re: Do you have the balls?
« Reply #73 on: March 19, 2020, 03:32:28 PM »
how ballsy does one need to be to sell volatility currently?

Depends on how much you are risking.  I'm speaking about cash-covered puts.



ERICOPOLY

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Re: Do you have the balls?
« Reply #74 on: March 19, 2020, 03:45:55 PM »
I already have ATM calls.  Take for example the $20 strike WFC put, expiring a month from now on April 17th.  The bid is $1.25.

19 months x 1.25 == $23.75.   That's so high you certainly don't need to commit all of the cash to the endeavor.

gary17

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Re: Do you have the balls?
« Reply #75 on: March 19, 2020, 09:42:39 PM »
Hi Eric
would it be better to sell puts or sell calls
i guess sell puts commit you to buying
and sell calls selling
be curious how you think about the two options !
tia
Gary

ERICOPOLY

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Re: Do you have the balls?
« Reply #76 on: March 19, 2020, 10:01:20 PM »
Hi Eric
would it be better to sell puts or sell calls
i guess sell puts commit you to buying
and sell calls selling
be curious how you think about the two options !
tia
Gary

I am trying to buy low and sell high, so I'd rather be buying lower than selling not-so-high.

LightWhale

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Re: Do you have the balls?
« Reply #77 on: March 19, 2020, 10:38:58 PM »
Eric,

How are you positioned now?

At-the-money calls, out-of-the-money calls, and cash.  I will have a lot of cash at some point here, because of a full redemption at Dec 31st prices -- still waiting for the audit to complete before releasing the cash to me.

Are these ATM calls LEAPS or near term? I'm assuming the latter, but finding it hard to decide for myself which ones to go for.
Thanks.

ERICOPOLY

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Re: Do you have the balls?
« Reply #78 on: March 19, 2020, 10:51:23 PM »
Eric,

How are you positioned now?

At-the-money calls, out-of-the-money calls, and cash.  I will have a lot of cash at some point here, because of a full redemption at Dec 31st prices -- still waiting for the audit to complete before releasing the cash to me.

Are these ATM calls LEAPS or near term? I'm assuming the latter, but finding it hard to decide for myself which ones to go for.
Thanks.

LEAPS.  With a 12-18 month window on a vaccine, I want long-term expiry.

gary17

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Re: Do you have the balls?
« Reply #79 on: March 19, 2020, 11:03:42 PM »
 i guess if you sell calls.... since you own the stock you are getting the dividends
but selling puts ... it's a future contract to buy at a lower price.. so you won't get any dividends .