LeafOfFaith
Well-known member
"Shopify of cloud computing"?
Hey Nerds: Blockchain
- Thread starter zeke
- Start date
CH1
The Artist Formerly Known as chiggins.
that’s what the clowns from Citron called it recently. They slapped a $200 tag on it
>>We’ve seen this movie before and just like how Shopify and Square saw that SMBs were not far behind large enterprises in adopting e-commerce and digital payments," the report said. "DigitalOcean is in the leading position to capitalize on this mega trend."
Citron's study said that "the transformation to the cloud for large enterprises is obviously already on its way," and noted that analysts have estimated the value of Amazon Web Services, Amazon's (AMZN) - Get Report cloud computing platform, at $700 billion to $800 billion.
"While AWS sells a product that is not just expensive but also very difficult to use, DigitalOcean, like Shopify has created an easy solution for SMBs to embrace cloud technology," the report said.
After speaking with former employees, customers, and even the competition, the report said, "we have found that DigitalOcean’s customer base is even more passionate and evangelical than that of Shopify, which leads us to believe that DigitalOcean will become the dominant SMB cloud provider."
fergy57
Well-known member
Apologies in advance if I'm messing up terms or anything here. Also, this is within my RRSP, so my view is obviously on the longer term here.
So have a bit of a question regarding options.
I bought some calls on an Ethereum etf a few months ago that come due in Sept. Considering my options, I know what I think I want to do, but more or less just sounding out the room to see if its a good course of action (and if I am mathing out correctly).
So this etf, 1 share represents 0.003693 of an Ether. Math it out, thats approximately 271 shares per full eth.
Options were bought at $1.50, at a strike price of $10.50. So, I'm looking at a break even of $12.00 per share, which would be a price of approximately $3,250 for Ethereum.
Current prices at time of writing:
Ethereum: $3570 (ish)
Ethx.b: $13.24
Bid price: $3.10
Ask price: $3.45
I think I want to exercise the options and have the Eth. I would need to shuffle around some RRSP funds to do it (which could take a bit, so I need to get the ball rolling on the paperwork if this is what I do).
The other things I've considered are selling a portion of the calls and exercising the rest (still get Eth, just not as much, but do not need to move around funds), or just selling the calls by or as close to the expiry date (I mean, I would double up what I put in at this point, assuming my math is right, but then I'd just have dollars and no Eth).
Are there other things I should consider here? I am very optimistic about the long term future of eth. In a perfect world, I would just inject more $$ into my RRSPs and exercise the options outright, but I do not have that kind of money available lol.
**For those that follow Eth, its exciting times with EIP-1559 finally being implemented (not so exciting for my mining, but its still doing ok atm). For those that don't, in a nutshell, a portion of the new coins that are minted when a block is mined will now be burned instead of being rewarded to the miners (not quite deflationary, but still limits the supply of new coins).**
So have a bit of a question regarding options.
I bought some calls on an Ethereum etf a few months ago that come due in Sept. Considering my options, I know what I think I want to do, but more or less just sounding out the room to see if its a good course of action (and if I am mathing out correctly).
So this etf, 1 share represents 0.003693 of an Ether. Math it out, thats approximately 271 shares per full eth.
Options were bought at $1.50, at a strike price of $10.50. So, I'm looking at a break even of $12.00 per share, which would be a price of approximately $3,250 for Ethereum.
Current prices at time of writing:
Ethereum: $3570 (ish)
Ethx.b: $13.24
Bid price: $3.10
Ask price: $3.45
I think I want to exercise the options and have the Eth. I would need to shuffle around some RRSP funds to do it (which could take a bit, so I need to get the ball rolling on the paperwork if this is what I do).
The other things I've considered are selling a portion of the calls and exercising the rest (still get Eth, just not as much, but do not need to move around funds), or just selling the calls by or as close to the expiry date (I mean, I would double up what I put in at this point, assuming my math is right, but then I'd just have dollars and no Eth).
Are there other things I should consider here? I am very optimistic about the long term future of eth. In a perfect world, I would just inject more $$ into my RRSPs and exercise the options outright, but I do not have that kind of money available lol.
**For those that follow Eth, its exciting times with EIP-1559 finally being implemented (not so exciting for my mining, but its still doing ok atm). For those that don't, in a nutshell, a portion of the new coins that are minted when a block is mined will now be burned instead of being rewarded to the miners (not quite deflationary, but still limits the supply of new coins).**
Deckie007
Well-known member
Exercising an option this far out isn't a great idea. You will lose a lot of the value of the option - I assume it has a high IMP VOL? (what's the ticker?). I guess my question is, why not sell the option and buy shares of the ETF instead? Or hold a bit longer and sell when the option's value goes up more, then buy? Options are more sensitive to price action than shares, so if it goes up significantly you'll still be in better shape if you hold the option for a while longer. Obviously the opposite if it goes down. Personally, if you feel really good about where ETH is going, I'd consider rolling the options forward into a LEAP. I've been doing that recently with some growth stocks I like that are stuck in the FUD mud right now, and it's less risky and still has a high upside.
LeafOfFaith
Well-known member
I've only bought one ETF in my investing career thus far, and that is MSOS, which has been a smashing success thus far, let me tell ya.
Deckie007
Well-known member
goddamn presto
CH1
The Artist Formerly Known as chiggins.
Yeah, I've never exercised an option this far out. Not sure what the advantage would be???
If you're worried about having too much leverage, I would just sell some of those calls (that way to get paid for the time premium) and use that cash to buy the common.
If you're worried about having too much leverage, I would just sell some of those calls (that way to get paid for the time premium) and use that cash to buy the common.
CH1
The Artist Formerly Known as chiggins.
LeafOfFaith
Well-known member
I should've rode that skepticism hard!
fergy57
Well-known member
Not sure what IMP volume is lol.
The etf ticker is: ethx.b
Should clarify, I don't intend on exercising the option now. It closes the 17th of september. I more meant I would have to get the ball rolling to transfer the funds between my work rrsp and my self directed, so the money would be available to exercise the option on or near Sept 17th.
I'm new to stock options, but a LEAP sounds like a great idea. No idea how to do that though lol. How does one roll the options forward?
The etf ticker is: ethx.b
Should clarify, I don't intend on exercising the option now. It closes the 17th of september. I more meant I would have to get the ball rolling to transfer the funds between my work rrsp and my self directed, so the money would be available to exercise the option on or near Sept 17th.
I'm new to stock options, but a LEAP sounds like a great idea. No idea how to do that though lol. How does one roll the options forward?
Deckie007
Well-known member
Ah, ok. Ok quick lesson:
IV = Implied Volatility , i.e how much the stock price goes up or down. If this is high...generally let's say above 50%, a large portion of the option value is found there (extrinsic value) vs the value of the option tied to the price of the stock (intrinsic value). If the stock becomes less volatile, you can actually lose money on the option even if the option's strike price is below the security's price because the extrinsic value declines due to lesser volatility (volatility crush).
I looked at the ETF and the IV is quite high, which makes sense because it's tied to ETH and it has moved around quite a bit. Personally, my play would be this....I'd look to sell the options by the end of next week/ early week of Aug 16th. Time decay gets steeper once you get inside 30 days. The RSI is overbought right now, so I'd be careful, it could tumble a bit soon.
Then I'd buy the ETF outright since it's such a cheap ETF. You could also just roll the option forward to March 2022, but that's not really a leap. I think you'd be better served selling the options. I assume you have a bunch by the price of them.
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CH1
The Artist Formerly Known as chiggins.
In such a case, I would tend to sell my options and bank coin.
then buy whatever amount I can afford/want in common stock
there are two different trades in my book
the only time I tie stock and options at the hip would be if I was long a company but also held options (puts) as a hedge in case the stock tanked
then buy whatever amount I can afford/want in common stock
there are two different trades in my book
the only time I tie stock and options at the hip would be if I was long a company but also held options (puts) as a hedge in case the stock tanked
Deckie007
Well-known member
Yeah, I'd just sell the options and buy the ETF if it's something you want to hold long term. Assuming you bought the option when it was fairly cheap you've done well for yourself already. Selling a bunch of holdings to buy and exercise 1100 shares of the ETF might overleverage your portfolio to ETH anyway which might not be the greatest idea. I know holding 1100 shares sounds better than 130 or so you'd get by selling the options and buying the ETF, but there are a lot of risks involved you'd be taking on by doing so.
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