I posted a chart on my investment in CLF prior to this chart.
The good news today is the announcement that the company used free cash to retire the series B preferred stock related to the ArcelorMittal deal thus effectively reducing proforma share count by 10%. This is a positive earnings driver for the share price upward over the next two quarters.
UVXY traded upward 20% on 3 January 2020. that was the day the Iranian General, Solemani, was - pick your characterization basd on your politics - murdered assassinated etc. In February 2018 UVXY rose 110% in one session. In March 2020 The Covid spike was $12 to $130 in two weeks. Absent these outliers, UVXY has dropped from over $30,000 in 5 years with the most...
February 2018 was Volmageddon. The thought passed around as a narrative was that leveraged volatility buyers created the spike as a short cover. Here is my narrative then and now:
US markets closed down. Rhe world indices followed and neatly rolled around to the US open with all markets - absent a few outliers like Columbia - down. All futures were trading down...
BAC has large reserves that will continue roll out to the bottom line as the bank exceeds the capital requirement of the stress test.
BAC has a very large stock buyback in place and will use a substantial amount of this money to support the stock price and the buyback.
Buffett received permission to increase ownership to 15% of the BAC common stock without...
ProShares has reverse split UVXY 10 times since creation of this ETF.
It is most logical to buy puts immediately after the common is reverse split.
Fact: There are only been 4 in the last 281 months where SPY has been down 10% for the entire month.
Prior to the reverse split last month there were 8 reverse splits that resulted in $5000 becoming $4. This makes...
Today I exited a cash secured put trade. I sell 30 day cash secured puts on the drop and buy these back on a rise like today.
I am not temped to buy the calls today. I only buy the calls when the common rises twice the 20 day average true trading range. (2xATR).
Currently UVXY has a $3.50 average true range based on the precipitous drop after the tenth reverse...
I sold the June 17.5 cash secured puts.
This represents 1% of portfolio assets as the potential full loss.
This was a mistake. I should have doubled that position size.
Excellent company consolidating the steel industry.
Infrastructure spend is not if but how large.
Managers are beyond competent.
CEO is the best in this industry.
Buffett once stated that no...
I sell and roll a BAC put vertical monthly. This has been a very good strategy for the options trader.
The company has a large share buy back in place.
Berkshire Hathaway has been given permission to expand to 15% of the common stock.
The company is over reserved and likely with earning tomorrow will report the actual amount of reserves released to the bottom...
Today I sold the Nuance $55/$50 credit put vertical.
Nice chart but how do I take advantage of that?
While many folks might not think to use a put vertical option strategy it seemed to me the most obvious choice. If I were to buy the Nuance today in the $52 range I have that amount at risk should the deal not go through. Instead I collected the maximum amount...
ASXC has FDA approval for the surgical device granted this month.
ASXC has adequate cash for two year burn as sales are ramped up.
Sell the ASXC Jan 2023 leap options and the raw cost is $2 per share. Stock is as of today $3.80 range.
Invest the cash in GGN and trade GGN monthly into the dividend ex-date.
own the stock for nearly free at any cost in 21...
BAT invested directly in OGI. I sold the $2.50 cash secured 2023 Leap puts.
With the cash infusion from the direct sale of stock to BAT there is minimal risk that the stock trades sub 85 cents.
Eight five cents would be the cost per share minus the put premium collected. and a secondary inveetment of the collected premium into GGN and BPT. As usual this is a...
BPT is part of a two way trade that I like.
I sold the $2.50 September cash secured leap put. This put transacted at the time value of money. Today that cash secured put premium is 45 cents. This puts the downside risk of selling the cash secured option for September at 192 day. I put the cash into GGN which is an oil and gold GAMCO fund with a 10% current...
This trade has two legs.
The chart is ugly.
Sell a cash secured January 2023 $4 strike leap and collect $3.40.
Use the cash to buy GGN at the current $3.40 ask and collect 22 monthly 3 cent per share dividends and reinvest the dividends in GGN.
Assuming GGN continues to pay the 3 cent per share per month dividend for the next 22 months the stock is...