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re: General Lee's NVVE
Posted on 5/18/21 at 9:51 pm to GeneralLee
Posted on 5/18/21 at 9:51 pm to GeneralLee
I got back in at 11.59.
Still wanting to run hard. Market is funky though
I'll call it even for barf lol
Still wanting to run hard. Market is funky though
I'll call it even for barf lol
1
Posted on 5/18/21 at 10:31 pm to jimjackandjose
Thanks appreciate it! Yeah if bitcoin hadn’t crashed BFARF would’ve been a two bagger. On to the next stock in NVVE. Feels much more comfortable to be in stocks where the Biden administration will be friendly to (STLHF, NVVE) as opposed to crypto where the hammer is coming down at some point with regulations.
Posted on 5/19/21 at 9:36 am to igoringa
I just rolled my $15 covered calls this morning and then sold covered calls at a $22.5 strike in November for $2/share. Holy crap the implied volatility is insane at that premium. So I've lowered my cost basis on my commons to ~$5.50/share now with the covered call premiums... 
Posted on 5/19/21 at 10:01 am to GeneralLee
quote:
~$5.50/share now with the covered call premiums...
Wow that is awesome!
Posted on 5/19/21 at 10:03 am to igoringa
This is an insane arbitrage opportunity. So you can sell a covered call at a $22.5 strike in November for ~$2/share, while you can buy a warrant at an equivalent $3.20 (adjusted for 2:1 ratio) per share at a $11.5 strike with 5 years until expiration. Holy crap there are some dumb option buyers out there.
So a good play here (admittedly levering up your risk) is to buy commons, sell covered calls, then buy warrants with the covered call premiums.
So a good play here (admittedly levering up your risk) is to buy commons, sell covered calls, then buy warrants with the covered call premiums.
This post was edited on 5/19/21 at 10:14 am
Posted on 5/19/21 at 11:06 am to GeneralLee
Compelling trade - I am in.... covered calls at $1.95 and $2 for $22 in November (that is insane).
Used about 65% to buy options. Taking the rest as a reduction effectively of common.
Used about 65% to buy options. Taking the rest as a reduction effectively of common.
Posted on 5/19/21 at 11:10 am to igoringa
If these option buyers knew about the warrants they’d be like 2-3x higher, haha.
Posted on 5/19/21 at 12:16 pm to GeneralLee
How many of the 379 options traded are yours? LOL
Posted on 5/19/21 at 12:19 pm to igoringa
The vast majority....
Posted on 5/19/21 at 12:21 pm to GeneralLee
LOL Bloody brilliant! I am a measly 29.
Posted on 5/19/21 at 12:23 pm to igoringa
Hey if it hits $22.50 by November, I’ll pay the tax man short term cap gains. Good problem to have at that point. 325% return on my money in six months.
Posted on 5/19/21 at 12:49 pm to GeneralLee
I have to ask General does the user name DeSantis_2024 relate to you or do you have a doppleganger over there?
Posted on 5/19/21 at 12:49 pm to igoringa
Yeah that’s me
Posted on 5/19/21 at 12:50 pm to igoringa
Check out my thread on Spire Global while you’re at it. Loaded more warrants at $1.23 there this morning.
Posted on 5/19/21 at 12:53 pm to igoringa
Can y'all explain exactly what you're doing in laymans terms and strategy?
I see the calls for nov at around $2...I see the warrants for $1.58.
Help me make sense of what you're doing here.
I see the calls for nov at around $2...I see the warrants for $1.58.
Help me make sense of what you're doing here.
Posted on 5/19/21 at 12:55 pm to GeneralLee
NSH has been on my list.... I will start dipping my toe.
Posted on 5/19/21 at 12:56 pm to Got Heeem
Call options are insanely high priced while warrants are very cheap, comparatively. So you want to sell the expensive derivative and buy the cheap one. So sell calls (I’m doing covered calls but theoretically you could do naked calls) and buy warrants and you’re locking in a profit pretty much regardless of what the stock price does (if you sell naked calls).
So in this example we sell $22.5 November calls and use those premiums to buy $11.5 strike 2:1 warrants at $1.60. Worst case you lose your call premium if warrants expire worthless. In perfect world, NVVE waits until after November to go above $22.5 and then you hit the jackpot as calls expire worthless and warrants print.
So in this example we sell $22.5 November calls and use those premiums to buy $11.5 strike 2:1 warrants at $1.60. Worst case you lose your call premium if warrants expire worthless. In perfect world, NVVE waits until after November to go above $22.5 and then you hit the jackpot as calls expire worthless and warrants print.
This post was edited on 5/19/21 at 1:00 pm
Posted on 5/19/21 at 1:00 pm to GeneralLee
quote:So you sell the calls later down the line and but the warrants now?
So you want to sell the expensive derivative and buy the cheap one.
Also, are you buying equal $$ amount of each for this play?
I know this is a hedge to basically win at a high percentage, but I want to play it right.
Posted on 5/19/21 at 1:03 pm to Got Heeem
Sell calls and buy warrants now. If it’s just an arbitrage play then equal $ of sold calls and bought warrants. I’m holding NVVE commons (so selling covered calls) so I still have some downside risks.
Posted on 5/19/21 at 4:25 pm to igoringa
Good PR out after hours about launching V2G in Denmark. Sky’s the limit!
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