I sold the $4 strike Jan 2023 Leap puts for $3.40.
The closing of the just announced $74.5 Million modest equity raise reduces the possibility of bankruptcy by expiration.
the second leg of this trade is that I put the cash into GGN.
GGN pays a 3 cent per share distribution for 2021 declared by GAMCO.
GGN is also a volatility hedge. When the Iranian General was killed GGN traded up nearly $1 per share literally overnight.
My cost approaches zero at 2023 expiration.
Possible narrative:
With industry consolidation I would not be surprised to find that this is potentially a backdoor way for an acquirer to get a position cheap via the equity raise.
all the best
markrobertson67
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Broke resistance. I see a pullback to $1, then maybe as low as 70c, before any upward motion.
Phinn
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@markrobertson67, Possibly. We might be able to hang around $1.10 for a bit. Fridays are always red for me so I'm waiting to see how next week plays out.
The closing of the just announced $74.5 Million modest equity raise reduces the possibility of bankruptcy by expiration.
the second leg of this trade is that I put the cash into GGN.
GGN pays a 3 cent per share distribution for 2021 declared by GAMCO.
GGN is also a volatility hedge. When the Iranian General was killed GGN traded up nearly $1 per share literally overnight.
My cost approaches zero at 2023 expiration.
Possible narrative:
With industry consolidation I would not be surprised to find that this is potentially a backdoor way for an acquirer to get a position cheap via the equity raise.
all the best