Anybody playing in the SPAC pool?

PurpleThrobber

Money pouring into these motherfuckers.

Success? Failure?

89ute

Success. Maybe?

Love the high IVs on these. Great for selling cash secured puts and covered calls.

HCAC - Hennessy Capital Acquisition created to buy Canoo, GOEV.

Sold 2 cash secured puts on 12/10, expiration 12/18. I sold them at 20 dollar strike. Price at the time was about 19.50ish. Each put paid a premium of 184.33 so total collected 368.66.

HCAC closed 19 something on the 18th, so I own it now. I thought the price would drift a little over 20 between the 10th and 18th but it went sideways which is just fine with me. I'm in at 18.16 when you factor in the premium.

So - monday 12/21 I sell covered calls since I now own it. Because of the high IV the covered calls are paying well just like the cash secured puts.

Sold a 30 strike 1/15 expiration for 130.00 and sold the other at 35 strike for 79.35. Now I'm in (break even point) at 17.11.

12/21 HCAC merger happened with Canoo, on on 12/22 my HCAC shares are now GOEV. Shares traded 21-22 on 12/22 and have since drifted down a little and closed Friday at 17.81.

So aside from collecting premium it hasn't done anything for me which is why I play the premium game. The trade off is giving up the profits if this fucker moons past 30 and 35 by 1/15. But that's fine, I more than double my money from 17.11 if blows pasted 35. Happy with the gain and the premium already collected.

My other play was Pivotal Investment Corp, PIC. (Merged with XL Fleet)

Sold 3 puts with a 17.50 strike for 249.34 each (801.99 total) on 12/21 with 1/15 expiration. PIC is now XL Fleet (XL) and it started mooning on Wednesday and closed at 29.78. I don't care what this fucker does as long as it stays above 17.50 on 1/15. I guess if it closed a hair under 17.50 I wouldn't mind that either because I'm comfortable owning it.

So, with SPACs, I like playing the high IV and collecting premium. Does not look like I will own XL but I'm cool walking away with $802.

We'll see how these work out.

PurpleThrobber

Dropped $3K into THCB last week. We'll see how it runs. Had an associate a 10 bagger off a SPAC recently and this is his next play.

89ute

PurpleThrobber said:

Dropped $3K into THCB last week. We'll see how it runs. Had an associate a 10 bagger off a SPAC recently and this is his next play.

A QuantumScape type return would be nice. Is that the one your associate got in on?

PurpleThrobber

89ute said:

PurpleThrobber said:

Dropped $3K into THCB last week. We'll see how it runs. Had an associate a 10 bagger off a SPAC recently and this is his next play.

A QuantumScape type return would be nice. Is that the one your associate got in on?

Pretty sure that's the one he scored on.