I follow the uranium sector and Argentina but never considered blending them.
I prefer to express commodity themes with direct exposure to the commodity, and LEAPS calls on the most liquid majors. In this way, I get the upside of junior miners with the downside of major miners.
This is not to say small caps do not bring asymmetric opportunities. However, understanding geology is a must. Without knowing how to read the intricate geological reports, we have no real edge.
That's true. On the other hand, many geos only the a good/interesting deposit and invest only based on that. Therefore, their performance is not the best. Speaking of experience here.
Never heard of leaps calls, what's the difference to usual calls? In that regard, I like Geologo Trader's strategy of selling covered calls on stock you hold long-term anyway.
LEAPS stands for Long-Term Equity Anticipation Securities. Disregard the pretentious name; those options (or any derivative) expire after at least 12 months.
The goal is to pick call options with low IV (below 40%), high liquidity (consider OI and Volume), and at least 12 months to expiration. This strategy pays off really well if you pick the right stock/option/time.
I like that approach because I delegate risk management by buying a long-term option; I do not care about stop loss. I trade path dependency (the risk of prematurely kicking my SL, then moving up) for time dependency.
Okay, I have to admit that's a bit above my pay grade. But yes, the longer the time horizon, the higher the chance of the stock doing what it should to. This eliminates all the daily/weekly/monthly noise.
It may sound fancy, but that strategy is one of the simplest yet the most efficient.
Once I buy a LEAPS call, I set a take profit with at least x5 RR and sit and wait. In this way, I eliminate the weakest link in my investing process: myself.
Great article!
What AI template/theme are you using for this photos?
Thank you!
I just used the microsoft image creator. Nothing sophisticated: https://designer.microsoft.com/image-creator
Excellent write-up. I really enjoy reading it.
I follow the uranium sector and Argentina but never considered blending them.
I prefer to express commodity themes with direct exposure to the commodity, and LEAPS calls on the most liquid majors. In this way, I get the upside of junior miners with the downside of major miners.
This is not to say small caps do not bring asymmetric opportunities. However, understanding geology is a must. Without knowing how to read the intricate geological reports, we have no real edge.
Thank you!
That's true. On the other hand, many geos only the a good/interesting deposit and invest only based on that. Therefore, their performance is not the best. Speaking of experience here.
Never heard of leaps calls, what's the difference to usual calls? In that regard, I like Geologo Trader's strategy of selling covered calls on stock you hold long-term anyway.
LEAPS stands for Long-Term Equity Anticipation Securities. Disregard the pretentious name; those options (or any derivative) expire after at least 12 months.
The goal is to pick call options with low IV (below 40%), high liquidity (consider OI and Volume), and at least 12 months to expiration. This strategy pays off really well if you pick the right stock/option/time.
I like that approach because I delegate risk management by buying a long-term option; I do not care about stop loss. I trade path dependency (the risk of prematurely kicking my SL, then moving up) for time dependency.
Okay, I have to admit that's a bit above my pay grade. But yes, the longer the time horizon, the higher the chance of the stock doing what it should to. This eliminates all the daily/weekly/monthly noise.
It may sound fancy, but that strategy is one of the simplest yet the most efficient.
Once I buy a LEAPS call, I set a take profit with at least x5 RR and sit and wait. In this way, I eliminate the weakest link in my investing process: myself.
Interesting!
Thanks!
Banger mate!
Thanks, looking forward to reading your take! ;)