backtothebeach

Now back down to $17.30.

Problem with ADSK is valuation with low growth, and the recent internal accounting investigation casting doubt on management. Maybe a nothingburger, maybe more bad news to follow. Grossly overpaid management probably, have you looked at SBC? I had stupidly sold some $250 puts on this one, figuring they are solid with an entrenched product, without looking closely at the company (when will I ever learn???). Just closed them out first thing this morning, cutting losses. Maybe this will mark the bottom, lol.

That's kind of in my wheelhouse. There is no objectively or statistically better deal, otherwise it would be arbitraged away in a liquid option chain like TSLA's, especially right before earnings. One can be subjectively better than the other, though, depending on your expectation of TSLA's stock price and your risk tolerance. Let's say you decide to risk (gamble) $4000 on the expectation that TSLA will fall after next week's earnings. You could buy 2 contracts of the 175 put, or 5 contracts of the 157.50 put. Below are P/L graphs of both positions, at expiration April 26, and on April 24, at the open after earnings (with unchanged IV, which may only be realistic for the first minutes of April 24, probably IV will drop and the options worth a bit less than modeled). You can see that if TSLA either surges or drops a lot, the 157.50 put is superior (max loss is capped at $4000, but max profit is much higher due to more contracts). However you have to be right about a large downmove. The 175 put is "safer" between 150 and 175, and has, as you noted, a higher breakeven - at the cost of each dollar invested not making as much should TSLA drop like a rock to $120.

Fair enough. Too bad there is no "ignore thread" feature.

Parsad deleted an Israel/Gaza thread after October 7th. However he takes part in this one, so maybe he thinks differently now. IMO this stuff is just too divisive, nobody will change anyone's mind, and is going to be 99% not investment related. There should be an Oil & Gas thread, and if Middle East discussions creep in from time to time that's ok, but every dedicated political thread is one too many IMO.

I suggest this thread be deleted. We've done well without a dedicated Middle East thread for the last 6 months.

Congrats! I did not do anything...felt too stressful.

What happened?

>500,000,000 shares authorized, 10,879,905 shares issued and outstanding Hmm, could there be some reflexivity here? Can they place the other 489M shares at market price?

Fascinating. Net assets of 52.6M, current market cap 644M. An easy 10x. People probably don't even know what they are buying, paying for 1000% future growth upfront. As of December 31, 2023: https://www.sec.gov/Archives/edgar/data/1843974/000139834424005739/fp0087134-2_ncsr.htm Net Asset Value Per Share Net assets applicable to Common Shareholders $ 52,623,533 Common Shares of beneficial interest outstanding, at $0.00001 par value; 500,000,000 shares authorized, 10,879,905 shares issued and outstanding 10,879,905 Net Asset Value Per Share applicable to Common Shareholders $ 4.84

Good points about taxes and dividends. I am not an expert on taxes, but if exercising the options does not trigger a tax event, this kind of leverage could be at least a good tool to pull investments forward two years during the accumulating phase of ones life. Particularly if you think you have identified an outstanding bargain, e.g., Berkshire trading below book value in 2020.

The most prudent approach is to make the leverage uncallable. If you own 1000 shares of a stock, and want to control, for example, 1100 shares, you could sell 100 shares and buy 2 option contracts of the longest expiration and lowest strike price possible from the proceeds, for even money. That way you don't have margin loan and have zero risk of a margin call. The implied interest rate for BRKB deep ITM LEAPs currently is around 6%, not too different from any other cost of leverage. (Probably a bit high for the expected return of Berkshire at the moment). Jim (mungofitch) on the old Fool boards did a lot of great work on this. Eplanation of implied interest rate: http://www.datahelper.com/mi/search.phtml?nofool=youBet&mid=34391366 http://www.datahelper.com/mi/search.phtml?nofool=youBet&mid=31996045 One nuance: During a steep drop in stock price, you might be able to lock in some gained time value by rolling the strike price further down, as explained here: http://www.datahelper.com/mi/search.phtml?nofool=youBet&mid=31899968 Another nuance: If the stock goes absolutely nowhere, or down, or up less than 6% p.a., you would have to roll those options forward (a few more years out), in order to maintain the leverage. This may require fresh funds, suitable strike prices may not always be available, or implied interest rates could be even higher.

Enjoyed the puns in the top posts of this thread: https://www.reddit.com/r/AskReddit/comments/1bc9vz8/what_is_badly_named_and_what_is_a_better_name_for/

Any ideas for a creative option play on Google? I am thinking, it is unlikely for Google to tank precipitously (famous last words), but it could slowly grind lower, while everybody beats up on it, similar to what happened to META two years ago. On the other hand, if one of the founders steps in this could pop 20%. May be a synthetic long using short OTM puts, and long OTM calls.

Interview with Perplexity’s founder and CEO: https://podcasts.apple.com/us/podcast/invest-like-the-best-with-patrick-oshaughnessy/id1154105909