Yeah I should have gotten something on that volume. I'm digging into it... I must have not saved it or its in a different layout. Seems like that wouldn't matter though. I should have gotten an alert. Hmmmm.
Stoney, Someone bought 3000 of the Jan 2023 $37 calls on WORK for about $7 this AM. $2.1Million dollar bet it takes out $44 by then. Obviously someone took the other side of that trade. hmmmm.
Wow that's a big bet- Slack has been a public company since the summer of 2019. Shares initially traded around a high of $40, only to fall back to $20 in October. Since the outbreak of COVID-19, shares initially fell back to the high-teens as momentum pushed shares up to $40 again in June, before now having fallen back to $25 again after the release of the second-quarter results.
The thing is why not go much shorter time frame to coincide with the Vaccine news / rally-- Jan 2021 or 22'
It seems awful cheap for 2-1/2 years out on this stock. I wonder.... and I am not sure about this.... but can an insider that has vested stock options that will vest at a later date sell covered calls on those shares today? So say as a founding partner of GBA I have the right to purchase 300,000 shares at $15 on 1/1/2023. Its in my Gummie contract cause Stoney is a cool ceo. But I need some money today... bad divorce or something. I mean can I call Goldman Sachs and say "hey, I'll sell you 3000 $37 calls for $7, I don't have the shares right now but I will come Jan 1 2023." Basically I lock in $22/share future profit on my stock option package ($37-$15) and I get $2.1M today to pay off the soon to be ex-wife. (And GS gets in on the world famous GBA action) I wonder if that's legal? I guess it depends on the fine print of the ipo. I know they can't do that during the typical 90 day lock-up, but down the road for vested stock compensation.... hmmm. I bet thats what that was. Whoever took the other side though would have to agree to not exercise early, unless the seller was already sitting on 300K shares. It also flags the stock to look like a dog... in a way. A $44 share price 2-1/2 years out for a company as hyped as this that is trading for $27 today.... ? It makes it look like its not going anywhere. This was definitely some kind of back room deal by an insider who needed cash. Great deal for whoever bought them because this damn thing will be way above $44 by then. Unless MSFT buries them with that competing product. Or maybe someone knows they are gonna get bought up. This is good stuff. I like this stock.
Hey I left a comment at SA under a really good article on Go Daddy-- check out the name drop. stonedinvestor Comments77 | Following Peter Lynch time-!I recently bought GDDY and it has gone down a bit. I bought it because I saw my wife had set up a domain name for a store she was working with, that was highly unlike her and she did it herself. Ease of operation. Then I myself out of the blue claimed a domain name for a future project gummybearadvisors.com. I am working off the premise that some companies are going to have a continued tailwind because of the pandemic and even as work from home stocks are sold off with vaccine news & because they have drawn future orders forward, there is a subset of stocks that stand to continue to benefit. As more people look for extra income and side action and perhaps have the free time to explore these options, a web site is a small expense and a first step. Ebay is another stock I feel has structurally changed and become more relevant during the virus- a tailwind stock- and unfortunately my wife has rediscovered that as well....~stoney 23 Sep 2020, 07:12 AM
<< 2 stocks I plucked from an infrastructure article >> MYR Group (MYRG) Electrical Transmission and Distribution is the name of the game here. There’s exposure to renewables. Whether you’re bullish or bearish about that, relax and focus instead on the big picture - aging electric grid, plant retirements and replacements, disturbingly recurring storm damage, and housing construction - and the nano-valuation (P/S, 0.28). Sterling Construction Company (STRL) Here’s a twist: STRL does not have energy exposure. It’s in Heavy Civil Construction (highways, commercial concrete products, aviation, waterways) with 55% of revenue; Specialty Services (excavation, drilling, blasting, drainage) with 34%, and Residential Construction (concrete foundations for single-family homes in the high-growth Dallas-Fort Worth and Houston areas) accounting for the remaining 11%. It’s a micro-cap but with an ROE of 14%, so I’d say it’s managing its fixed costs pretty well.
Oooo. I like the sound of STRL. It certainly merits a deeper look. One for the ira maybe. Gotta dig into this one. Re Chewy... let me look. You throw out so damn many ideas, between that and trading, jr. gummie over here can't keep up. Yeah we liked Chewy last week was it? On earnings. I said it would sell off right? Lets look.