41.25% ROI or getting GRAB shares at $2.35, sounds like a win win
Big brain move, after firing more bullet for more GRAB shares. I have time to re-think the strategy to take for September's quota. What I came up with is to sell LEAPS PUT options.
By selling 5 of this $4 PUT option expiring 24 Jan 2024, I manage to get $825 in premiums ($1.65 x 100 x 5) which equates to a 41.25% gain. This premium is non refundable so I'm keeping it regardless.
If on 24 Jan 2024, $Grab Holdings(GRAB.US$'s price is more than $4, that means I gotten a 41.25% gain on $2,000. So much better than the bank har?
But if GRAB price is less than $4, then I have to buy 500 shares at $4. If we account for the premium collected. That means I will be buying them at $2.35 ($4 - $1.65). Of course the risk is if GRAB goes bankrupt or the price goes super duper low.
If on 24 Jan 2024, $Grab Holdings(GRAB.US$'s price is more than $4, that means I gotten a 41.25% gain on $2,000. So much better than the bank har?
But if GRAB price is less than $4, then I have to buy 500 shares at $4. If we account for the premium collected. That means I will be buying them at $2.35 ($4 - $1.65). Of course the risk is if GRAB goes bankrupt or the price goes super duper low.
Since the strategy seems sound, why not do more of it? So I closed some other option position to pump more into GRAB.
I sold 3 more $3.50 PUT expiring 24 Jan 2024 too, I manage to get $405 in premiums ($1.35 x 100 x 3) which equates to a 38.57% gain. This premium is non refundable so I'm keeping it regardless.
But if GRAB price is less than $3.5p, then I have to buy 300 shares at $3.50. If we account for the premium collected. That means I will be buying them at $2.15 ($3.50 - $1.35).
I sold 3 more $3.50 PUT expiring 24 Jan 2024 too, I manage to get $405 in premiums ($1.35 x 100 x 3) which equates to a 38.57% gain. This premium is non refundable so I'm keeping it regardless.
But if GRAB price is less than $3.5p, then I have to buy 300 shares at $3.50. If we account for the premium collected. That means I will be buying them at $2.15 ($3.50 - $1.35).
Since I'm bullish on GRAB on the long term view, but bearish on the market in the short to mid term view, this seems to be a good way to allocate my capital. If in 2024, the bull market rally, then I will just clock those double digit ROI, but if the market is still very bad, then yayyyy cheaper shares for me ![]()
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Will probably do this every month as the market keep dropping ![]()
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GoLeopard :
GoLeopard : Thanks for sharing, this is a good learning case study.
pigskin : Thanks for sharing
doctorpot1OP GoLeopard: no problem
love to share ideas and get feedback also. but for this have to wait for 1.5 years later to see if it is a good move or bad move hahahahaha 
doctorpot1OP pigskin: thanks for liking too
hope it help you in any way