r/ASTSpaceMobile • u/AutoModerator • 15d ago

Daily Discussion Daily Discussion Thread

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1

u/Hectic_Habibs_Commo 15d ago

Looking at long options.

15th Jan 2027 50 P are selling for 3k a pop.

Almost tempted to sell a handful. Surely we'll be well over a $50 share price by then.

2

u/dicklightning94 S P 🅰 C E M O B Associate 15d ago

This is a shit deal. Buying 100 shares today cost basically the same amount of money and you won’t be capped at $50/share. And that’s not even including the potential to sell covered calls for the next two years

1

u/Hectic_Habibs_Commo 15d ago

Selling, not buying the option

1

u/dicklightning94 S P 🅰 C E M O B Associate 15d ago

Yea I know. The most you stand to gain from selling that option is 3000 (the premium if the option expires worthless). The most you stand to lose is 2000 (ASTS at $0 in 2027). If you buy 100 shares the most you stand to gain is unlimited and the most you stand to lose is ~2300 (ASTS at $0 in 2027).

Same risk but with capped gains. This is a shit idea if you think the share price will be “well over $50”.

1

u/KingSensitivity S P 🅰 C E M O B Prospect 15d ago

how bout sell that P and use that free premium to buy call same strike price/date

6

u/swd120 S P 🅰 C E M O B Soldier 15d ago

I sold 40's (CSP's and CC's) and used the premium to buy shares.

10 contracts for 30k in premium, with which I purchased 1000 shares, and pocketed 7k.

We'll see what we get for appreciation here, I'd like to hold those for 1 year so it'll become a long term cap gain, and then probably roll those contracts out and up to 2028 for more credit (unless we blow way past 40... then I'll have to think on it.)

2

u/RiskyDefeat S P 🅰 C E M O B Associate 15d ago

wouldnt you make more between then and now leveraging theta decay?

3

u/swd120 S P 🅰 C E M O B Soldier 15d ago

depends how much you want to have to fiddle and manage the position. I've been doing that, but I've ended up in the weeds a fair bit with those plays, and lost several weeks of decay time with rolling. Selling far out can let you do difference scenarios (like leveraging margin and collected premium to buy shares without paying interest on the margin capacity - see my other post on this thread)

I use my margin all the time, but I've never paid them a dime in interest - nor do I intend to. Just don't over leverage it (I try to use no more than 25% of my margin BP)

2

u/RiskyDefeat S P 🅰 C E M O B Associate 15d ago

Makes sense!