CorpRaider Posted February 17, 2023 Posted February 17, 2023 (edited) VNO. Make midtown not suck again (or for the first time). Edited February 17, 2023 by CorpRaider
Libs Posted February 18, 2023 Posted February 18, 2023 ILPT April calls. Piggy-backing on Pupil's work.
sleepydragon Posted February 21, 2023 Posted February 21, 2023 (edited) Bought more Tencent. Edited February 21, 2023 by sleepydragon
ourkid8 Posted February 21, 2023 Posted February 21, 2023 (edited) More BN, it seems others are finally getting excited about it Edited February 21, 2023 by ourkid8
lnofeisone Posted February 21, 2023 Posted February 21, 2023 Bought OSTK LEAPs and sold OTM calls to capture vega crush. The premiums are very juicy.
Red Lion Posted February 21, 2023 Posted February 21, 2023 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 Posted February 21, 2023 Posted February 21, 2023 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 Posted February 22, 2023 Posted February 22, 2023 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 Posted February 22, 2023 Posted February 22, 2023 @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 Posted February 22, 2023 Posted February 22, 2023 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.
Saluki Posted February 22, 2023 Posted February 22, 2023 Bought a little OXY and Fairfax India on the dip. Added a little more to TV and SWBI.
Red Lion Posted February 22, 2023 Posted February 22, 2023 Just bought a slug of the Oxy warrants at 36.75. Might write some calls against some of the position, but I’m short on oil exposure in the portfolio anyway, the leverage is very cheap, and Buffett might well keep buying around this price to put a floor on it.
Eng12345 Posted February 22, 2023 Posted February 22, 2023 what is the difference between fih.u and ffxdf? I've been trying to figure out off and on for a bit but the best I can find is the difference in exchanges...fih.u is the toronto exchange and ffxdf is the OTC... Is there no difference in the underlying other than liquidity, correct?
LearningMachine Posted February 22, 2023 Posted February 22, 2023 (edited) 1 hour ago, RedLion said: Just bought a slug of the Oxy warrants at 36.75. Might write some calls against some of the position, but I’m short on oil exposure in the portfolio anyway, the leverage is very cheap, and Buffett might well keep buying around this price to put a floor on it. Given you have to pay short-term capital gains on expired calls regardless of duration, wonder if writing calls is worth it for giving up the opportunity for bigger gains. Edited February 22, 2023 by LearningMachine
Saluki Posted February 22, 2023 Posted February 22, 2023 32 minutes ago, Eng12345 said: what is the difference between fih.u and ffxdf? I've been trying to figure out off and on for a bit but the best I can find is the difference in exchanges...fih.u is the toronto exchange and ffxdf is the OTC... Is there no difference in the underlying other than liquidity, correct? No difference really, but the FFXDF is less liquid because it's a small cap Canadian company trading on a US exchange. Sometimes I don't see a resting bid/ask at all on FFXDF so make sure you put a limit order, not a market order. Some US brokerages won't let you trade on the foreign exchanges. At my brokerage I have to buy FFXDF, not FIH but because it's not very liquid it makes me do two-factor authorization and I have to do it as a limit order.
Red Lion Posted February 22, 2023 Posted February 22, 2023 30 minutes ago, LearningMachine said: Given you have to pay short-term capital gains on expired calls regardless of duration, wonder if writing calls is worth it for giving up the opportunity for bigger gains. Agreed. I’m going to be looking for longer expiry options for this reason if I write options against more of the position.
Eng12345 Posted February 23, 2023 Posted February 23, 2023 5 hours ago, Saluki said: No difference really, but the FFXDF is less liquid because it's a small cap Canadian company trading on a US exchange. Sometimes I don't see a resting bid/ask at all on FFXDF so make sure you put a limit order, not a market order. Some US brokerages won't let you trade on the foreign exchanges. At my brokerage I have to buy FFXDF, not FIH but because it's not very liquid it makes me do two-factor authorization and I have to do it as a limit order. Thank you. That is what I thought but wasn't sure. My brokerage only offers FFXDF.
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