So you’re wondering Melvin, how to you buy for a 50% discount?
As you know, I’ve lost my financial advisor status and have reached full retard. Ignore everything I say.
Well anyways, this is where a cheeky strategy that I’ve come across can help us out. This play is to turbocharge the MOASS tendies, it is NOT recommended to be your only play for the MOASS. Keep holding onto your shares, you may need them as collateral to help with this strategy!
So here’s how it works. I can buy a $160 strike January 2023 call contract for $8,000. This enables me to play the waiting game for another year and a half nearly! Just forget it’s even been bought for now, theta decay will probably ruin the value but that doesn’t matter. It’s a sunk cost.
Onto the $80 a share claim!
So, if I wait until the price of GME reaches 100x the strike, or $16,000, I can sell 1 of my shares that I already own to fund exercising the contract. If I buy this share now, it will cost me about $160.
The total entry cost of this play is $8,160. That makes the $81.60 share price claim a reality!
An added bonus, is that as the MOASS starts and the share price rises, delta hedging will require the seller of the contract to buy more and more shares until they own all 100. I could never do this myself, I can only afford a handful of shares with my $8,160 (well, 51 to be exact)
So in effect, I am able to get 100 shares out of the market earlier in the MOASS than before. And if my strategy does print, I’ll be sitting on $1.6m worth of shares!
And if the MOASS doesn’t happen, I’m only down my $8k. Happy days.
This works well with higher strikes depending on how bullish you are. Per some DDers, there’s no reason why this couldn’t work with a $950 strike call. Damn I’d be rich if that printed!
TL;DR buy call options with the intent to sell shares to fund the contract exercising and rake in the tendies
Find us at the office
Overmann- Mucha street no. 55, 74667 Papeete, French Polynesia
Give us a ring
+76 987 423 417
Mon - Fri, 8:00-17:00