Ok. It’s been a little more than a month since my last update. Here’s the rundown of what I’ve done since Feb 3rd:
Before getting into the new stuff, just a backtrack to Feb 3rd and selling my GE 3/19 calls. In hindsight, I got my decision wrong. I was completely wrong. GE had multiple 3, 4, 5% gains. These options, that I sold for $0.39 closed March 8th at $2.22. A couple favorable announcements and GE closed $14.17 that same day. As you can see above, I’ve sold 2 of my GE 6/18 calls already to capture those increased gains, including one on March 8th for $2.75. I’m keeping my last GE 6/18 for after April earnings at least and will probably try holding closer to expiry. I’m certainly not selling now that GE announced possibility of a 8-1 reverse split.
Right, continuing on, starting at the bottom with SBE. This was a SPAC closing on ChargePoint, a EV charging company. Essentially, I decided that I want to take the premiums I’m earning from VLDR and from selling my GE calls and have that pay for my next 100 shares in a company. I chose SBE (now CHPT) to continue in the EV/AV space. I also chose CHPT because the IV is also high, but instead of monthly options, it has weekly options and more strikes. I expect IV to remain high as the EV/AV space continues to be speculative and based on 3-5 year growth targets.
RBAC was a purely speculative play. This is a SPAC focusing on sports and analytics. On March 2nd, Bloomberg published that Sportradar was in talks with a SPAC without naming the SPAC. There are only a small handful of SPACs targeting the sport industry. Turns out the SPAC was instead HZON. Oh well. Net a $8.87 loss for chance at something bigger.
Finally, for VLDR, I waited until after earnings in late February plus a green day to sell another covered call. Sold $20 strike for 3/19 for $0.75. A few days prior, VLDR announces they’ve removed founder/board chairman and CMO due to unspecified actions. The spat between the remaining board / CEO and the founder is much too public for me. VLDR is down 35% in the last month. So while my CC value appreciated quickly, it’s at the expense of my underlying. Ugh.
So I think my plan is to let my VLDR ride through the expiry of 3/19. At that point, I’ll look for an exit, aiming to be before legacy shareholders tie-up period closes (note: need to figure out that date). I’ll then take that cash – however much it might be – and sell a cash-secured put for the first time. I’m trying to practice some patience with VLDR, to not rush into exiting. I’m still deciding who I will sell CSP on, though I’m looking at Ford.
We’re now caught up.