lnofeisone

We had dinner with our realtor and he said this. The condo market is absolutely dead in the DC area. Harsh rental rules (no renting allowed) are partially to blame. He also said anything in the $1.2-$2M range consistently gets 5-6 bids.

Sold enough FRC preferred to recover my cost basis on the morning pop. Will let the rest ride out.

Not going to lie, I thought they would want to keep it rangebound. Not to steer this into the political spectrum but Biden's admin has been loud on liberal agenda but moderate on agenda plans. I was wrong. However, I do believe that supply/demand will keep oil in $70-$90 range with the occasional over/under.

I'm debating if selling 10 puts here makes sense. They could just be bought out by the parent. Bought FNF, JXN, DB and FRC preferred lotto ticket.

Bought some KNOP.

Go to NerdWallet and you'll find some banks paying 4.25% on savings accounts. I know of at least 1 credit union in the pacific northwest offering 7% up to 5k in checking and 3% in savings.

It looks like NYCB will be taking over Signature deposits and buying some of the loans (roughly 10% of Signature's total loans and roughly 60% of Signature's multifamily loans) at 20% discount. My guess is NYCB took non-rent stabilized multi-families (with some minimal mix of rent-stabilized). Can't blame them for cherry-picking. Interesting bit - NYCB has a lot of experience acquiring failing banks with their work on AmTrust and Aurora/Lehmann (something I worked on long ago). Interesting choice by FDIC.

I'm not sure they are in cahoots. There is a storage build-up because supply is greater than demand. SPR is selling into that market, and they can't buy before they are done selling. So either OPEC+ cuts, there is a general pullback in production, or price just heads lower. Good news is that the sector is in a much better shape financially and there will be a lot few BKs if we stay low for longer.

Are there many companies that report on Friday at 530PM? In the money, options get exercised unless you submit contrary exercise instructions. The brokers have to submit everything by 530PM EST but each broker can have its own deadline for exercising. To Dinar's point, if you are big and important, the broker deadline is arbitrary but 530PM EST is set by OCC and that's not moveable.

I think we are in year 7. No end in sight is probably the right frame of looking at it. j/k. WFC thinks it will go through 2023. That feels right. They've been settling and getting their processes right. This is why I put asset cap removal as 4th bullet. I doubt it will happen tomorrow but it is something to look forward to.

I'm following this general structure with some IAT in the mix. My "large" bank basket favors WFC because of the asset cap (though I am thinking more about the mixed shelf offering they filed). Here is my thinking: 1) I suspect BAC/JPM/WFC will all experience a deposit influx. WFC's influx won't be as big because they offer terrible rates and, in any case, don't want too much in deposits. 2) Asset cap forced WFC to be nimbler about their deposits, and they have relatively low deposit costs. 3) Probably because of the asset cap, they've been shrinking their assets and now have room to pick up new assets (lend) at higher rates. 4) Asset cap removal is a catalyst. They have some space to pick up assets now, but removing the asset cap will let them increase that significantly. If only WFC could keep its computer systems working well and modernize its IT to join the 21st century. It's especially important not to have glitches when depositors are already jumpy.

I recently had a chance to meet Snowflake's executive (not the CEO but one that is listed on their leadership team), and I have to say, I was extremely underwhelmed. Snowflake is going all in with Nvidia around their data products and is using big system integrators to drive sales (e.g., Accenture). This strategy somewhat works if one recognizes that the likes of Accenture are teaming up with Snowflake, Databricks, and just about anyone. I have to say, in the market space where I work, Databricks has been outworking Snowflake in whitespaces and, in some instances replacing areas where Snowflake was entrenched for several years. I say this while being long SNOW but rethinking this position.

I have a core VTS position and been trading around it. The volatility is insane.

bought IAT and added to WFC.

No news on the asset cap. CFPB came out hot and spicy against WFC saying at any given time 1/3 of the US population is at risk of WFC's shenanigans and they are a habitual recidivist (language was that strong) of bad behavior. I think asset cap is here to stay with us for at least another year or two.

BAC, TFC Calls

This is my plan. Buy some IAT as this saga unfolds and if we go lower, start picking up LEAPs in the likes of PNC, TFC, BAC.

Bought a full position of SNCAF. The thread is great and the market is asleep at the wheel. Bought LSXMK and MEGEF starters.

If you sell the losing leg, you can't use that loss to offset anything until you close all legs of your trade. It was updated that way for the very reason you called out (and traders used to do just that). Timing and option pricing (atm, itm, otm,) nuances can matter in some cases but doesn't look like it in this case. For example, married put implies you buy the atm put the same day you buy the stock and if you lose $ on the put, you have to add the cost of the put to the cost basis of your stock. In other words, can't take capital loss on the put. There is lots to keep track off and you can designate all the tax lot assignent with your broker as you trade but most just defer to defaults.

@RedLion is selling calls against his existing warrants. IRS treats warrants as options, so he is creating straddles. Straddles aren't taxed at short-term gains. To add to this is that he is selling LEAPs that are offsetting his warrants. If he holds those LEAPs and his warrants until June 2024, he will qualify for long-term capital gains tax. The trick for both is to make sure that number of sold calls doesn't exceed the number of warrants/100. Pug 550 - section "Short Sales" - https://www.irs.gov/pub/irs-pdf/p550.pdf

Bought OSTK LEAPs and sold OTM calls to capture vega crush. The premiums are very juicy.

This is 100% spot on. When he was at State, Bolton had no problems arguing with anyone but he absolutely knows his stuff. Probably didn't help that he was so argumentative all the time.

I don't expect the call to be exercised (I sold 30 Jan 24 calls). Let's say CVE gets to 30 and calls are exercised, TD will borrow and assign the shares at $30/share, which will net out to be me being short CVE at 30. Since I have the warrants, I could theoretically exercise them and get the shares assigned to me from someone else, netting out to 0. In reality, I'll likely sell the warrants and cover the short because of the tax mismatch. This is no different than buying a vertical bull spread. You always run the risk of someone exercising the leg that you sold if it goes too deep in the money. In this case, I'm using warrants as the long leg and selling options as the short leg. Just a friendly reminder, 100 warrants give you as many shares as 1 call so if you are holding 10,000 warrants, you can only sell 100 calls to create a risk profile of a vertical.

They are treating as a naked call.

Selling CVE calls against my warrants position.