Even for geos this would be a better way to play commodities than buying some junior shitco because you liked the pictures of their samples of cool rocks. Geos tend to overlook many other aspects of mining, so we are definitely not the best investors.
Besides that, and remembering our chat a few weeks ago, this seems to be a very interesting approach. 🤔
Great comment! I appreciate your honesty. Being professional in a certain area makes us overconfident when we move to investing in the same field.
After many lessons learned the hard way, I focused on simplicity. Priority is strict risk management. That's why I like options a lot. They prioritize time, the most underestimated variable in investing.
Even with leveraged equity exposure, I can not get the convexity of long call options. Of course, if options are selected correctly, considering expiration, strike, and IV.
Let's say the price moves by 20%. Meanwhile, the call option value may change by 200%. Numbers are not fixed. They just represent the potential of LEAPS calls.
I never made consistent money buying and holding juniors. They still haven't moved despite gold hitting $2,600. Do you ever roll down your strikes if the company price declines significantly and the fundamentals and thesis are still sound?
Even for geos this would be a better way to play commodities than buying some junior shitco because you liked the pictures of their samples of cool rocks. Geos tend to overlook many other aspects of mining, so we are definitely not the best investors.
Besides that, and remembering our chat a few weeks ago, this seems to be a very interesting approach. 🤔
Great comment! I appreciate your honesty. Being professional in a certain area makes us overconfident when we move to investing in the same field.
After many lessons learned the hard way, I focused on simplicity. Priority is strict risk management. That's why I like options a lot. They prioritize time, the most underestimated variable in investing.
Why not borrow stock and go long the same exposure, placing a stop loss limit and avoid paying the option premium?
Even with leveraged equity exposure, I can not get the convexity of long call options. Of course, if options are selected correctly, considering expiration, strike, and IV.
Let's say the price moves by 20%. Meanwhile, the call option value may change by 200%. Numbers are not fixed. They just represent the potential of LEAPS calls.
I never made consistent money buying and holding juniors. They still haven't moved despite gold hitting $2,600. Do you ever roll down your strikes if the company price declines significantly and the fundamentals and thesis are still sound?