Back to selling naked puts! But traded on FAS for fun. Here are my trades for Dec.
Transactions
Bought 200 FAS at $124.00 and sold at $126.60.
Sold 10, Jan 22, TQQQ 60 puts for $1.70 & Bought it back at $0.03. Any idea why?
Sold 10, Jan 22, RIVN 70 puts for $3.30 (too attractive to pass)
Sold 10, Jan 22, RIVN 55 puts for $1.45 (too attractive to pass)
Sold 10, Jan 22, PTON 35 puts for $1.40 (just experimenting)
First, I closed all my October trades on Nov 4th and booked my profits though the options were expiring in Jan. Why? I don’t trade on margin. I don’t want to go long either. So, back to selling naked puts! Here are my trades for Nov.
Transactions
Sold 10, Jan 22, SPXL 70 puts for $0.90
Sold 10, Jan 22, RIVN 70 puts for $3.30
Sold 10, Jan 22, RIVN 55 puts for $1.45
Sold 10, Jan 22, PTON 35 puts for $1.40
Per popular request, I’ll be posting my monthly trades hereafter. Though the request was for weekly posts, I’ll start with monthly for now. I traded only naked puts last month and here they are. Guess how much capital I need if all the puts are exercised? Guess how much profit I would make if none is exercised?
Transactions
Sold 10, Jan 22, FAS 65 puts for $2.22
Sold 10, Jan 22, TQQQ 60 puts for $1.70
Sold 5, Jan 22 TQQQ 65 puts for $2.05
Sold 5, Jan 22 TQQQ 70 puts for $1.65
Sold 5, Jan 22 TQQQ 70 puts for $1.34
Any idea why Jan 22 TQQQ 70 puts were sold at different prices?
Trevor Milton, the founder of Nikola, a EV manufacturer lied “nearly about all aspects of the business” acording to the U.S. Attorney’s Office in Manhattan. Did the SPAC that took Nikola public drop the ball and cause this debacle? Would the traditional vetting process have eliminated this quagmire? Prosecutors say, “To make it appear the truck prototype was driving, it was towed to the top of a hill and then rolled down to the bottom.” Click the images below and read on….
Remember our lengthy discussion on negative interest rates in the Fintech class? In these unusual times, so many truisms about finance are becoming untrue. In Denmark, a country with a long history of negative interest rates, the central bank announced 20 year home mortgages at a fixed interest rate of zero percent. A 20 year, $100,000 mortgage at 3% APR would cost a homeowner $33,000.00 in interest. But this begs many important questions. Will the rental market be impacted badly? Will home prices not appreciate? Click on the image below to read further.
I said in the class I will explain how options differ from SPAC. Here it is.
SPAC (Special Purpose Acquisition Company) is a shell corporation with no current business operation but has identified/is identifying potential targets for acquisition/merger. Upon completing the M/A, the SPAC goes public and those who invested in the SPAC get IPO shares allotted by the company. Whereas options are contracts between two parties (the company is not involved) either to buy or sell shares at a particular price within a specific period. The shared are moved from one investor to another if the options are exercised. SPAC issue warrants to the investors to begin with. To read more about SPAC click on the image below.
In the class I discussed that while creating hosted platforms that bring demand and supply together to transact, entrepreneurs may restrict their roles solely to developing the platform and hosting it, to functioning exclusively as Subject Matter Experts who hire third party software developers, or to acting as both SMEs and software developers. Which option an entrepreneur picks depends on his/her background and other exogenous and endogenous factors. I agree it may be argued that certain types have inherent disadvantages/disadvantages and that’s up for discussion. Click the image below to download the slides I used in the class. Hope you had some takeaways and points to ponder from this class. I admire your entrepreneurial drive and enthusiasm. I didn’t spend much time on monetizing APIs and if you have questions, please contact me in my Stanford email ID.
WeWork was valued at $47 Billion in January 2019. In April 2020, it’s valued at $2.9 Billion. CNBC also reported ” Prior to the IPO filing, the coworking-space company was expected to seek a valuation as high as $100 billion”. Imagine that! As I said valuation is an art and a science. Looks like I should have said “foresic science”! Read on by clicking the image below and send me your views to my Stanford email ID.
