ASTSpaceMobile
I am and have been very bullish on $AST SpaceMobile (ASTS.US)$ . On the one hand, my cost basis on shares and calls is under $3, so despite recent dips, the position is ahead.
My holdings include November and January calls, which I will sell in the next two weeks (perhaps letting January run a bit.) Then hold cash for a dip with accompanying high IV to sell CSPs intending to get assigned to add more shares (goal is ten thousand in the next year.) Go through that cycle collecting premium until assigned. I also hold 2026 LEAPS calls. I am monitoring their liquidity, and hope to sell some to exercise others. Later, again I intend to use the profits to write CSPs and purchase calls (I prefer not to roll, as the best time for selling differs from the best time to buy.)Meanwhile, building hedges with VIX and bonds, acquiring shares of other promising small caps and collecting premium through CSPs. Eventually I will write against shares and/or calls in these companies. I have done so, but managing the positions is difficult for such volatile tickers. As always building positions in large caps that are down and dipping my toes im income stocks for longterm holds.
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It’s a beautiful day!
Former scientist, enthusiastic reader and student of capital markets.
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Kimpten : do you prefer buying the large cap stocks outright or their leverged etf counterparts?
BelleWeather OP Kimpten : I buy shares (or sell CSPs if possible,) to acquire large caps for longterm holding. I use leveraged single stock tickers to swing trade over longish time frames. So I’ll add over time (to NVDL and MSTX, for example,) especially at local lows, and sell all when targets are reached, then begin again. I also sell CSPs on them. The lower prices are more within reach for those, and I like the bonus premium. I personally don’t hold those and similar products over years as I am wary of flash crashes (as well as other issues.) Though I have seen others do so with great success, I prefer to avoid large drawdowns, erosion, fees and etc… I don’t trade leveraged ETFs at all, though sometimes trade options on them as contracts on TQQQ are far less expensive than those on QQQ, and the magnitude of swings is greater.
TLDR: Shares for long term investment, leveraged tickers for trading.
Nisdey BelleWeather OP : Aside from options contracts, I don't understand the point of leveraged tickers, other than as a "tourist bet" for people without leverage accounts. (Think Big-6 and Big-8 on a craps table that don't pay true odds)
BelleWeather OP Nisdey : Hm, I don’t know anything about casino games aside from what I’ve read in probability texts. But I think leveraged tickers can be used to advantage. No margin interest or call, set leverage vs adjustable and possible to cordone off individual risk. I do prefer options contracts that I can arrange to suit. But if a favored ticker is down and I want to capitalize on that with a short term trade but not open a strategy, I can see short term use to them. I have added into NVDL and MSTX at lows and set limit sells to funnel profits into shares, so as to speed up the process. But for my purposes, they are only useful short term as I don’t want to deal with decay or massive drawdowns. And, yes, they are great for trading options, lower cost shares and bigger moves, but added complexity, leverage and risk, so for short periods and high conviction catalysts. I imagine people use them in accounts that don’t allow for other leverage? But I have seen some who simply hold and DCA into TQQQ the past couple of years, which works, I suppose, but isn’t worth total loss in the event of sudden downturn.
Dan’l BelleWeather OP : Yeah; this. (consider starting a channel, or maybe writing the market manual ~;-)
BelleWeather OP Dan’l : I have been asked about that, which is flattering, but, um… I am far closer to my goal of a set and stable portfolio with which I can buy back some of my time, far more quickly than I’d imagined. Perhaps we can both obsess over the markets another year or so, and when ready for stability, start one together!
Keller22 BelleWeather OP : Ok wow you do really well. So your’e saying another opportunity for the asts call options is coming ?
BelleWeather OP Keller22 : I clearly think so. But I leg into positions, short and long depending on volatility and share price. The only exception being LEAPS (which if they do very well quickly, I write puts to capture extrinsic value.) As I’ve mentioned in previous posts, I expected that ASTS would trade lower as the satellites are tested and increase again next year. Though I also think announcements and upcoming ER may produce a pop to trade. I’m long shares, synthetics and LEAPS as well as short and long puts at various strikes and expiries. I will sell some November calls very soon - they are up but I wanted to give them a chance to fly higher, but theta will start munching so…just manage daily!