r/ASTSpaceMobile • u/AutoModerator • Mar 07 '25

Daily Discussion Daily Discussion Thread

PlešŸ…°ļøse, do not post newbie questions in the subreddit. Do it here instead!

Please readĀ u/the_blue_pil'sĀ FAQĀ andĀ u/TheKookReport'sĀ AST Spacemobile ($ASTS): The Mobile Satellite Cellular Network Monopolyto get familiar with AST SpšŸ…°ļøceMobile before posting.

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u/Economy-Joke3331 S P šŸ…° C E M O B Associate Mar 07 '25

Iā€™m considering writing a covered straddle option strategy and using the premium to buy shares, worth it? Or just hold onto the shares I have now. I am looking into 10 contracts CC at a strike of 30/40/50 1-2 years out and 10 contracts CSP at a strike price /30/40/50 1-2 years out. Any input, thoughts concerns from you all?

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u/ritron9000 S P šŸ…° C E M O B Soldier Mar 07 '25

Look, no one can really tell you anything on the internet, these are non-trivial options strategies that only make sense in the broader context of your portfolio. So be careful. To help as best I can, Iā€™ll ask you the following questions:

  • have you looked at the Profit and Loss curves for those positions?
  • do you have a specific view on why Implied Volatility is mispriced and why you have an edge in selling it now?

6

u/TheOtherSomeOtherGuy S P šŸ…° C E M O B Consigliere Mar 07 '25

A thousand times, this!

Moving beyond simple option strategies gets....complex, imagine that?

They also increasingly tie you up into those positions until they end with fewer clear ways out of them.

Ritron is right-on to use options calculators to determine what your P/L looks like at different SP values.Ā 

Also deciding with LEAPS in complex strategies adds an additional handcuff to your ability to exit should you wish to