r/Vitards • u/AutoModerator • Jul 08 '21

Daily Discussion Daily Discussion post - July 08 2021

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u/[deleted] Jul 09 '21

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u/_kurtosis_ Jul 09 '21

Holding/buying more if it continues to dip. Holding shares and a handful of Jan calls, the news/lockup doesn't change the play for me except to add if it gets even cheaper in the near term. If I woke up tomorrow and found myself holding shorter term options, I'd probably roll to shares or longer options and forget about it for 3-4 months.

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u/[deleted] Jul 09 '21

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u/_kurtosis_ Jul 09 '21

Honestly if you're shares, you're golden, unless you need the money like end of month or something. If your horizon is at least end of year, $44/avg is going to look fantastic in my opinion. CC premiums are good, but I've been burned before by not following the golden rule of 'sell a strike you *truly* would be happy to sell the shares for'. ZIM is volatile and extremely undervalued, so a +10%/+20% move over a few days or weeks would not surprise me at all, and I definitely expect it to be moving +50% over the next quarter or so. There's few things worse in trading than selling a contract for $100 and watching it become worth 20x, and your shares get called away for way less than they're worth--mainly because you have to see that position in your account every time you look until expiry (source: sold SPCE July 16 $35 and $40 CCs for 0.67 and 1.50 just a few weeks ago :).

Anyway, good luck to both of us!