Current Short Positions
I'm skeptical of some SPACs
Currently I have nine specific “short” positions. All are actually put options, and almost all are one year in duration.
January 2022 Puts
Palantir (PLTR) - Exercise price: $7.50, cost: 40 cents
Plug Plower (PLUG) - Exercise price: $10.00, cost: 39 cents
Nikola (NKLA) - Exercise price: $7.50, cost: $1.42
Tesla (TSLA) - Exercise price: $200, cost $7.35
Tesla (TSLA) - Exercise price: $400, cost $38.70
Zillow (ZG) - Exercise price: $70, cost $3.09
Virgin Galactic (SPCE) - Exercise price: $7.50, cost: 47 cents.
Giving me a year for these positions to wend their way closer to fair value seems like a lot of time, but we know how fast it can go. Buying two year options just seemed too expensive and I felt my chances of getting more one year options cheaper were good if the market spikes even higher this year, and will also extend out my expiration dates.
The exception to the one year duration is a small amount of Palantir puts I bought for May of this year.
May 21st, 2021 Puts
Palantir (PLTR) - Exercise price: $14, cost: 29 cents
Palantir (PLTR) - Exercise price: $15, cost: 37 cents
Looking at Palantir I was overawed by the amount of shares being unlocked at that very moment for employees and insiders, so I decided to take a shorter term gamble on predicting short term price action with a small number of cheap options exercisable at about half the current price when purchased.
This is the most easily criticizable decision of the group, its so out of nature with my investment philosophy and the thesis for these trades that it reeks of boredom purchasing. While it’s solidly in the money at the moment, that doesn’t justify it.