Today Leap Day (Feb 29, 2024) investment update
- Feb 29 Options Trades
- Feb 29 Options Trades - My views
- BTC vs RIOT. 5-day chart compare
- Not NFA. Educational purposes only.
Feb 29 Options Trades
Here are the options trades I made today. Green is cash incoming, redish is cash outgoing.
Feb 29 Options Trades - My views
Here are some of my thinking behind the moves I made today.
- BMY: Rolling a covered call up and out for $8. Adding in 3 weeks and up $3 in strike price.
- RIOT: Betting long using a long call at $475 cash today. I believe this stock will move in the same direction as Bitcoin.
- Visa: Rolling the PUT legs of an Iron Condor. Net credit of 0.06 (less fees) per contract.
- RIOT: Added 50 shares of RIOT blockchain (the mining company) for about $750. RIOT was at $17-18 a few days ago. "Buying the dip" is what I doing here.
BTC vs RIOT. 5-day chart compare
We all know Bitcoin and Ether is on FIRE this week. BTC is trading over $60K and Ether is over $3200.
We all know Bitcoin (BTC) has been moving up. Now that we have "spot ETF", you can look at the price move of any of the tradeable securities. For this example, I use GBTC:
Next is the same chart using the same period for RIOT:
The next step is to look at this and ask why.
- BTC and RIOT offer move together. They are considered a strong correlation between the two investments.
- Any negative news or earning release for RIOT? No.
- Bitcoin is up. Riot is Down.
- I assume that RIOT could be "lagging" the move of BITCOIN, and at some time (tomorrow, next week, etc), that it will be "valued" based on the current price of BITCOIN, hence making the stock move UP.
Based on my views mentioned above, this is the reason why I:
- purchase 50 shares of RIOT when it dropped under $15 (buying the dip).
- using a long option call for Sept 20 at $15. I only make money if RIOT shares trade over $16 or $17. The risk is that "time decay" is always happening and I need the STOCK to move UP "fast" at some point in the coming 2 months.
Not NFA. Educational purposes only.
This is NOT FINANCIAL Advice. This is what I did on FEB 29 based on my feeling or what the magic 8 ball told me to do.
You should NEVER listen to strangers on the internet. This is intended for educational purposes and a place for me to share my feelings. If I am right, I will buy a twinkle and get fat. If I'm wrong, I blame the CHARTS and the "4-year Bitcon Cycle" as broken.
What investment moves are you making?
Solving Chaos