Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of MI | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search MI
Shrewd'm.com Merry shrewd investors
Best Of MI | Best Of | Favourites & Replies | All Boards | Post of the Week!
Search MI


Investment Strategies / Mechanical Investing
Unthreaded | Threaded | Whole Thread (24) |
Author: rayvt 🐝  😊 😞
Number: of 3957 
Subject: Re: A strategy I read about
Date: 03/02/2025 5:07 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 2
Put half your allocation into the longest dated, lowest strike calls. Put the other half into calls expiring a year earlier than that.


Hmmm. At Sunday with markets closed,
The Jan'27 230 call is 308, so that would be $30,800 per contract.
230+308 = $538. Current price 514.
55% ITM, 6.24% effective interest rate.

For the year earlier, Jan'26. Would that be the deepest strike, 190 or the same strike, the 230? Or the same contract price?
The 190 is $334, the 230 is $295. Roughly the same interest rate.

So we're talking about $63,000.
Not bad leverage, though, about 1.6X.
Although at P/B of 1.7, this may not be the optimal time to buy calls.
But then, selling out of BRK at the "nosebleed high" of 400 wasn't a particularly great move.

a bunch of calls
Bunch! LOL.

Q: What do you do when you need to go to the store but your Maserati has a flat tire?
A: No problem, take the Ferrari.

(I slay me.)
Post New | Post Reply | Report Post | Recommend It!
Print the post
Unthreaded | Threaded | Whole Thread (24) |


Announcements
Mechanical Investing FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of MI | Best Of | Favourites & Replies | All Boards | Followed Shrewds