ACHR trade
I have a small position in shares of $Archer Aviation (ACHR.US)$
and am building an options trade, the long legs of which I’ll complete today as share price and IV are favorable. I hold and am buying ACHR January 2025 calls with a strike of 5.5 for .05 per contract today speculating that the share price will rise again in upcoming rallies and volatility this year. I’ll build a diagonal ratio spread over time by selling some higher strike and shorter dated contracts against those that I’ve purchased. Highly speculative but low cost strategy that has served me well on this and other small companies with upcoming catalysts.
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It’s a beautiful day!
Former scientist, enthusiastic reader and student of capital markets. The home pictured is gone.
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Dan’l : Same. 800 ACHR, 100 JOBY, et al.
(Correction of my earlier reply… I’m at Level 2, elsewhere; I’m new, here ~;-)
I expect Archer to really (pardon the pun) take off and fly straight up soon, despite their affinity for spending cash.
Also… don’t forget batteries: AMPX, right now, ENVX, soon.
BelleWeather OP Dan’l : Yes! I have traded JOBY in the past, and hold shares and options on ACHR and ENVX (I like the company long term, but wish I’d bought further dated.)
Dan’l BelleWeather OP : At close to three bucks? I can’t resist adding ACHR, even though they seem to be burning the cash they raised (by diluting my shares) to heat their unfinished GA factory. JOBY isn’t quit there yet, but has also made some good acquisitions along their flight path.
AMPX announced new contracts while I was moving my position away from JPMS (where my life w/o options was too simple), so my puts may not secure as many shares as I’d hoped to more quickly buy back, but ENVX is also still a solid buy: their lithium anode (and reduced size/weight) should prove to be very important.
BelleWeather OP Dan’l : Agreed on ENVX, shares and some options on that have done well at points (but currently have only shared.) I don’t hold JOBY, but traded them earlier this year. And yes! I have been buying shares and calls on ACHR the past few days!
Dan’l BelleWeather OP : I’m expecting big returns on ACHR, but JOBY’s acquisitions (particularly Xwing and H2Fly) keeps them in my portfolios… they seem to have flown under folks’ radar, autonomously taking off and landing at, and flying thousands of miles between, military bases and commercial airports, without incident.
BelleWeather OP Dan’l : Yes, I just think ACHR undervalued now - should be at Joby’s valuation, I think. And I have several small speculative companies in my portfolio, so I tend to focus on one in each space. Nothing against the others, though!
Dan’l BelleWeather OP : If either/both wins? So, too, will I (but, it sure looks like ACHR gonna fly first ~;-)
BelleWeather OP Dan’l : It’s like they take turns! They each have certain advantages over the other. ACHR is a bit “cheaper” and has partners rolling out, so? Yes! I hope everyone wins!
(investing isn’t a zero sum game.)
Dan’l BelleWeather OP : True, on both points…
ACHR and JOBY individually have relationships and properties that, combined, provide good coverage of the publicly-traded space.
While investing during this period of inflation and devaluation has been necessary, and lots of fun for folks like you and me, we are being a part in the mechanism which lifts the most people.
BelleWeather OP : Agreed. I feel that way about a few of my investments, honestly. And I revisited ACHR today - I actually think there may be a short term spike before end of year with FAA and Midnight tests. (Actually, you mentioned some of that too! This was a News piece.) I bought more dirt cheap 2025 calls (already have a ratio spread from an up day but am quite long now.) And added some 2027 LEAPS calls. (Not as cheap, but ok vis a vis volatility.) Also, a friend and an acquaintance on another platform both mentioned it btw yesterday and today (I may be mixing up your guys’ DD, mea culpa.) If they really start service next year and with that backlog…wild times ahead.
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