What are you buying today?

[ourkid8]

I added a small amount of BN. 

[Red Lion]

New position in UNP. Been wanting to invest in the railroads for several years and been waiting for a good entry point. I feel like $200 is an OK entry point, but I will look for opportunities to add. 

[Saluki]

Added to TV and SWBI using some money from stuff I trimmed yesterday. 

 

Added a small amount to NETI, which was down 6% today on no news (I plan to double it this year on the dips, then sell the half that I bought back when it was Scorpio Bulkers, to harvest the tax loss before year end while keeping the same position size).  

[Dinar]

36 minutes ago, RedLion said:

New position in UNP. Been wanting to invest in the railroads for several years and been waiting for a good entry point. I feel like $200 is an OK entry point, but I will look for opportunities to add. 

Why UNP and not say CNI or CP?  (I am long CNI & CP, but not other rails)

[Red Lion]

27 minutes ago, Dinar said:

Why UNP and not say CNI or CP?  (I am long CNI & CP, but not other rails)

Because I feel like they’re both a little richer on valuation, but these 3 are the ones on my watch list. Would like to start a position in all three eventually, hopefully after a bigger pullback. 
 

should mention I’m not an expert at rails, so my game plan was to probably create a small basket and then tweak it over a period of years. This is my favorite way to learn a new sector. 

Edited February 16, 2023 by RedLion

[fareastwarriors]

47 minutes ago, Dinar said:

Why UNP and not say CNI or CP?  (I am long CNI & CP, but not other rails)

Why CNI or CP and not the others?

 

[Dinar]

16 minutes ago, fareastwarriors said:

Why CNI or CP and not the others?

 

They have volume growth and will continue to have it, while others do not

[CassiusKing1]

More BRK/B and some COST.

[ourkid8]

I added a small amount of BN.  

Edited February 16, 2023 by ourkid8

[Spekulatius]

A starter in LSXMK

[WFF]

Added a tad of INDT and PCYO.  

[CorpRaider]

VNO.  Make midtown not suck again (or for the first time).

Edited February 17, 2023 by CorpRaider

[ourkid8]

A bit more BN

[Libs]

ILPT April calls. Piggy-backing on Pupil's work.

[sleepydragon]

Bought more Tencent.

Edited February 21, 2023 by sleepydragon

[Paarslaars]

OXY

[StevieV]

BN and IDT

[gokou3]

Swapped BAM into BN at par.

 

Bought OXY.WS

[ourkid8]

More BN, it seems others are finally getting excited about it    

Edited February 21, 2023 by ourkid8

[lnofeisone]

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

[Red Lion]

4 hours ago, gokou3 said:

Swapped BAM into BN at par.

 

Bought OXY.WS

 

I just took my first look at the OXY warrants, they're exercisable before august 2027 at $22 per share, so it seems like they're trading for close to the intrinsic value, am I reading this wrong? 

 

Seems like it could be a good trade to buy these warrants and then sell OXY calls against them. 

 

Buy OXY warrants at the $38.36 close, then sell June 24 $70 calls for $8. If it gets called away then you make $17.64 profit on a $30.36 cash outlay. If it doesn't get called away you have a cost basis of around $52.36 on OXY and still get to write numerous additional options before warrants expire. I'm sure you could max the IRR here by selling shorter term call options. 

 

For example you could sell the May $65 calls for about $3, and then just roll them up and out if the options go ITM. 

[gokou3]

36 minutes ago, RedLion said:

 

I just took my first look at the OXY warrants, they're exercisable before august 2027 at $22 per share, so it seems like they're trading for close to the intrinsic value, am I reading this wrong? 

 

Indeed not much time value in these warrants - just about $0.40 of time premium plus the foregone dividends relative to buying the underlying stock.  I guess if the company decides to increase the regular dividend payout, as a warrant holder I am slightly hurt by it (don't think there's any strike adjustment for regular dividends), but this seems to be already reflected in the small warrant premium.

 

My brokerage account doesn't support this technically uncovered calls so no comment on it.

[Stuart D]

1 hour ago, gokou3 said:

Indeed not much time value in these warrants - just about $0.40 of time premium plus the foregone dividends relative to buying the underlying stock.  I guess if the company decides to increase the regular dividend payout, as a warrant holder I am slightly hurt by it (don't think there's any strike adjustment for regular dividends), but this seems to be already reflected in the small warrant premium.

 

My brokerage account doesn't support this technically uncovered calls so no comment on it.

yeah, my brokerage won’t support it either. I agree the trade (buying the warrants and selling the calls) is interesting.

[Red Lion]

@gokou3 @Stuart D

 

I just bought 100 OXY warrants at 36.88 and sold an 8/18/23  $70 CALL for $3. So I got back all the time value plus a couple bucks. 

 

I think my brokerage is NOT treating this as a covered call, but I have privileges to short naked calls, so I'm not sure it makes a difference. I just put this on in with one contract, but I'm going to look at scaling this position up and writing different strikes and duration calls against the underlying position to see how it goes. 

[thepupil]

selling INDT which at this point was only in non-taxable accounts to buy more more CLO AAA via JAAA. Index yields all in at about 6.03%, SOFR/LIBOR +150. Hiding spot while figure out the next move.