I agree. It was a steal in the low $20's. Someone will buy them. Good intra-day trading stock at the present.
Short @ $26.17 EDIT: Ahhh. Out at 26.10 Edit 2: I'm back in at 26.09, its gonna drop this afternoon. Stop set at $26.68 ..be back later.
I already own a good amount of WORK, but if it drops below 25 again will likely sell 23 strike price puts. This way it will either be income or let me buy more at a great price!
Yeah that's a good plan. They're not bringing much though. Next week's $24's ($2 out) are .16 +/-. I'm done for the day. Covered at .24. It looks to be going up.
I'd go a couple months to April. If the stock is trading about $25, the April 22.5 puts will probably be worth around $1.35. I'd be comfortable selling maybe 8 contracts. I can then either pocket a little over $1000 or get more stock at just over $21, either way it's a win!
You've got an earnings report in there, I'd imagine in the beginning of March. Its priced to perfection at 24X forward sales. Their margins are incredible, but honestly I don't understand the business well enough to prognosticate the macro-picture in their niche and thus how their sales will come in. Year over year comps are tough to try and figure out without digging deep since they ipo'd in July, but I suspect they low-balled those sales estimates. But man if they miss.... it'll take a beating. Atlassian sure does well though. Same kind of operation right?
I’m a buyer of WORK, as a long-term holder. Reason being, as I’ve said earlier in this thread, buying Slack today reminds me of buying Salesforce a decade ago. Their a company that makes communication and getting things done efficiently much easier. What they do is eliminate the need for email at work. For those who work for a large company, you might get pestered with hundreds of emails daily that don’t pertain to you or your job. When I worked for Goldman Sachs, I would get hundreds of emails every day, I have to sort through them to see which ones pertained to me and which ones didn’t, it was a nightmare. Slack eliminates all that. To the point of the earnings, I’m going to hold the stock I already own through the earnings, much like most other holders, and it’s true if the stock gets crushed through earnings I would take a loss, but I’m a long-term holder and the situation I want to be in. With options, my losses will also be less than those who own the stock. With options my cost basis will likely be somewhere around $21.15, at five dollars less than where trades today, that’s plenty of cushion if earnings are bad. 20% drop might be a worst case scenario. Actually, I just did something similar with a Smile Direct Club, sold the 10-strike price puts, got assigned, which means I got paid buy the stock at $10, then rode the stock back up.
Lotta chit-chat going on as to whether this deal is for real or not. Doing a little DD and stumbled on this interesting little remark here by the CEO on 10/13/2020. Queue it at 46:19 https://s23.q4cdn.com/371616720/files/doc_downloads/GMT20201013-223211_RBC-Slack_1280x720.mp4 Hmmmm. Wonder if this cat plays poker.