Basically buying a short term CD to lock up an underlying virtual currency. So cannot trade virtual currency until maturity. It’s one way to create reverse-leverage to let other margin trade shorting and earn interest.
In my case my stock holdings are all long term. Just using low risk covered calls to expire more than 1 yr after I buy to lower my cost basis and if called away pay long term cap gains tax and to avoid wash sale I sell puts 30 plus days after the sale usually on a down day and re enter.
We are in investors chat thread exclusively for that.
In my case, I have long term position in LCID.
I just looked at PE which was negative and now 12+? https://finance.yahoo.com/quote/LCID/ That is way under valued. Perhaps time to sell a few puts like Jan strike 7.5 for 20 cents. 10 puts 7.5k cash 3% in 2 months and hey if it hits 7.5 nice to lower the cost basis. Very tempting trade.We are in investors chat thread exclusively for that.
I did that trade. Got 18 cents. 9k cash 2% in 7d . If the trade were to be repeated annual ROI 12.5% 85% chance of profit (not hitting 7.5).
Yahoo finance makes no sense. LCID still has negative earnings per share - I don’t see how they end up with a 12+ EPS based on that?
That is exactly what I was thinking. Td ameritrade thinkorswim showed the same.
Bought back the covered calls today on the dip. The concern seems to be about the dilution. What Fisker did to raise capital initially was a $5k non-refundable deposit on the first 5k cars MSRP 69k. That was about 7% of the MSRP. Instead of holding so many reservations for a tiny deposit, I wonder if Lucid charged a $6k non-refundable on Pure, $10k non-refundable deposit on Gravity, how much capital they would raise.
