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I suspect the credit call spreads are there to protect the nav not increase dividend income. I could be wrong, but I'm hoping they're scrambling to figure out a way to stabilize the nav of their funds
Freakin CCS. I am intrigued to see how they will employ this additional strategy. Assuming they know more than me, this should be a good thing for all of us. Only time will tell. Thank you for your awesome content!
Re Call Spreads- the are just balancing the delta to stabilize the NAV and collecting premium.. if the price breaches the Sell call they can close it and then let the other Call ride
I've only skimmed it but I agree with ROD, why that many BCs for only a week out? Maybe expecting big volatility due to debate? Think FED meeting is next week.
Looks to me like they’re trying to protect their cost basis. These sudden massive drops are probably below their average overall purchase price and they’re uncomfortable with the NAV erosion that would come with letting the shares get called away at these price levels. So they sell some ntm calls and collect some premium if it stays low, but if it spikes drastically, they buy back the short legs and ride the long strikes to Valhalla. So, if they cut the short legs early enough, you’ll love the price appreciation on those otm calls as the price appreciates. In their mind, the 185 strike is paid for by the 175 strike and it’s a “free” opportunity to collect way more upside than the $2.6M on the 175.
In fact, they can close the long call in the middle of the week if they are winning money on that but they dont spect that the actual price breach the long strike price...So, they can close that and hope COIN sell a bit to recover the short call position...
Howdy RoD, I've been enjoying your channel these past few months. Thanks for doing what you do. I wanted to share an idea -- I was thinking it would be cool to keep a monthly scorecard for the funds you are tracking. It would track Wins and Losses for each of the weekly calls within the given month for the particular fund. While your data already tracks this, I think it would be a nice roll-up view of the attractiveness of a given fund. Just a thought to share. Thanks for the channel sir! Cheers!!
Now if COIN were to go ballistic, you, me, and everyone else would ordinarily be bitching😂😂about we're "capped" and "why did they choose these strikes". I'll take a little less premium (long call cost) for the chance to participate more if this thing goes bonkers. I'm sure as they deploy this strategy more, they may bring the strikes in tighter. Give it TIME.
Looks like you don’t know how call credit spreads work, they are betting that coin is not going higher than their sell call and they keep the premium and the buy call is there to limit their losses in case coin goes above their sell call
CCSs are used to collect premium and also allows you to capture more of the upside up to the short call strike. YM Fund managers are hoping COIN doesn’t go past the short call of the CCS. IE 160/170 so that’s 160 for the short call.. and same w the other CCSs. The max loss on the CCS is 1000 if they are 10w strikes which is what they did per contract less credit received. Not sure YM knows how to run these either. Time will tell. They are trying to improve their funds which we can appreciate however..
I don't understand the significance. Of the prospective change. Given I csnread what is says but can some one say why it matters as far as benefits or non benefit. Is this a good thing or not
Think of it it’s as a high risk/high yield savings account play. For instance, if they see TSLA near support/resistance levels and they’re confident it won’t breach, if they have idle cash that’s not better used somewhere else, it’s a way to generate extra premium when done correctly. It complicates thing but gives them extra opportunities to generate premium.
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I suspect the credit call spreads are there to protect the nav not increase dividend income. I could be wrong, but I'm hoping they're scrambling to figure out a way to stabilize the nav of their funds
We appreciate all the hard work you are putting into all of this for us!
Fricken credit call spreads. Let's have a green day 💵🚀💵
That’s freaking amazing!!! Credit spreads are lit 🔥!
Freakin CCS.
I am intrigued to see how they will employ this additional strategy. Assuming they know more than me, this should be a good thing for all of us. Only time will tell. Thank you for your awesome content!
Thanks for the update! 😊 I like that strategy, they need to capture the upside, but you are right, about that longshot for COIN. 🤞Hope they're right!
Friggin credit call spreads!! Thanks Mark!!
Thanks. CCS, FTW, it’s positive long term.
LAST WEEK When Tesla went up over 6% and TSLY only captured about 0.5%...hopefully this won't happen anymore.
Re Call Spreads- the are just balancing the delta to stabilize the NAV and collecting premium.. if the price breaches the Sell call they can close it and then let the other Call ride
I've only skimmed it but I agree with ROD, why that many BCs for only a week out? Maybe expecting big volatility due to debate? Think FED meeting is next week.
If the bitcoin ones can use this to capitalize on the coming BTC bullmarket these could be some of the best funds ever
Looks to me like they’re trying to protect their cost basis. These sudden massive drops are probably below their average overall purchase price and they’re uncomfortable with the NAV erosion that would come with letting the shares get called away at these price levels.
So they sell some ntm calls and collect some premium if it stays low, but if it spikes drastically, they buy back the short legs and ride the long strikes to Valhalla. So, if they cut the short legs early enough, you’ll love the price appreciation on those otm calls as the price appreciates. In their mind, the 185 strike is paid for by the 175 strike and it’s a “free” opportunity to collect way more upside than the $2.6M on the 175.
In fact, they can close the long call in the middle of the week if they are winning money on that but they dont spect that the actual price breach the long strike price...So, they can close that and hope COIN sell a bit to recover the short call position...
I think under opportunistic senerio they mention "NET" premium, so I think they are including the cost of the purchased call
Hi mark
maybe if they deploy a Call credit spreads on TSLA it may improve its performance.
Thanks! for all the work you do.
Thank you so much
Friggin friggin friggin spreads. Time to kick off this week! 🤘
Friggin credit calls spreads. Hope you’ll feel better soon. ❤❤❤
Yup tsly can go most people have sold out of it anyway
Frickin Spreads- Go Green 📈
Fricken Credit Call Spreads. Happy Monday.
Fricken credit call spreads!!
Howdy RoD, I've been enjoying your channel these past few months. Thanks for doing what you do. I wanted to share an idea -- I was thinking it would be cool to keep a monthly scorecard for the funds you are tracking. It would track Wins and Losses for each of the weekly calls within the given month for the particular fund. While your data already tracks this, I think it would be a nice roll-up view of the attractiveness of a given fund. Just a thought to share. Thanks for the channel sir! Cheers!!
I have an idea like that once we close out the fiscal year in October
@@RetireonDividends Thanks for the scorecards you added! Cheers buddy!
I'm happy with less yield if the nav is more stable
Maybe this is why MSTY is sitting on so much cash lately they knew these changes were coming down the pipeline...
Fricken spreads!!!!!
Frickin, Frickin, Frickin.
Now if COIN were to go ballistic, you, me, and everyone else would ordinarily be bitching😂😂about we're "capped" and "why did they choose these strikes". I'll take a little less premium (long call cost) for the chance to participate more if this thing goes bonkers. I'm sure as they deploy this strategy more, they may bring the strikes in tighter. Give it TIME.
Don’t forget they will be able to sell the call they bought and capture premium too, if they chose 😊to
Looks like you don’t know how call credit spreads work, they are betting that coin is not going higher than their sell call and they keep the premium and the buy call is there to limit their losses in case coin goes above their sell call
We know
CCSs are used to collect premium and also allows you to capture more of the upside up to the short call strike. YM Fund managers are hoping COIN doesn’t go past the short call of the CCS. IE 160/170 so that’s 160 for the short call.. and same w the other CCSs.
The max loss on the CCS is 1000 if they are 10w strikes which is what they did per contract less credit received. Not sure YM knows how to run these either. Time will tell. They are trying to improve their funds which we can appreciate however..
Keep buying NVDY and reinvest dividends.
How about msty?
I had a dream, in my dream there was a talking dog, the dog said that he doesn't think COIN is gonna recover anytime soon.
yep, time to sell CONY.
Oh my fricken fricken!!!
I don't understand the significance. Of the prospective change. Given I csnread what is says but can some one say why it matters as far as benefits or non benefit. Is this a good thing or not
Think of it it’s as a high risk/high yield savings account play. For instance, if they see TSLA near support/resistance levels and they’re confident it won’t breach, if they have idle cash that’s not better used somewhere else, it’s a way to generate extra premium when done correctly. It complicates thing but gives them extra opportunities to generate premium.
@@boroqcat thanks got it
Freaking credit call spreads
Frickin spread. What ever it takes to turn cony
Fricking Credit call spreads -.-
Don't drop CONY. Drop TSLY.
Keep both
Keep both!!!
Freaking' call spreads
FCCS!!!
Ffccs !!!
Credit call spreads eliminate the need for a synthetic stock position. They're really cheap.
can i ask why so much diff from last cony estimate and this ?
Estimates don’t mean much this early in the month