Theresa’s Chat Magazine – A CSP Strategy, Buy Bitcoin, and a Tax Loss Selling Trick

Summary

  • A success story of selling cash secured puts on Enphase (ENPH).
  • How to take advantage of Bitcoin’s anticipated rise.
  • Trick to use in tax loss selling by selling the stock along with a cash-secured put.

I reproduced below some of this past week’s discussions in the Margin of Safety chat along with links to some interesting articles.

Selling cash secured puts on Enphase (ENPH) -a success story

Brian Steete 1964 Oct 20

Well I guess my $110 ENPH Put now belongs to me…

Kirk Spano Oct 20

That’s fine

Brian Steete 1964 Oct 20

Yup. I was successfully able to do out of the money, puts four months in a row so I’m actually ahead

Kirk Spano Oct 20

That’s awesome

Brian Steete 1964 Oct 20

It’s a stock I wanted. I love puts

Kirk Spano Oct 20

Selling puts on great companies and potentially great companies using basic technical analysis is just another margin of safety

Brian Steete 1964 Oct 20

Yes it is. Plus all of that extra work gives you more education and patience plus cash upfront.

Bitcoin is going to six figures

Kirk Spano Oct 20

I can’t say this any stronger…Bitcoin is going to six figures!!!

Buy Bitcoin, GBTC and ARKW

Sosjpj2013 Oct 20

A little conceptual help here please: trying to put a ratio number on BTC to GBTC

If BTC hits $100k 9about 3.3x) how much would GBTC go up? Does GBTC have a relatively fixed ratio with BTC?

Kirk Spano Oct 20

If it becomes an ETF, which is likely, the 17% discount narrows to a fraction of a percent, and the price moved 1:1 like any other etf.

Sosjpj2013 Oct 20

Much appreciated. Probably not the correct phrasing but from my lay perspective I have read GBTC was undervalued comparatively so that’s what I’ve been buying so far. Sometimes hard to find good info, Thank you!

A trick to use in tax loss selling

Kirk Spano Oct 16

Funds and institutions generally do tax loss selling in November. Retail usually sells in December. So, you’ll want to trim in October before they all do.

I know it’s hard to sell dividend stocks when they are down, so I like the trick of selling the stocks and then selling a cash-secured put at a strike price just out of the money and 31+ days out. You’ll usually be able to collect more than one quarter’s dividend by selling the put, while capturing the tax loss to use against other gains.

For example, I like selling AT&T stock if you’re down (most folks are), and then selling a cash-secured put on AT&T. Right now the stock is trading for about $14.45 and you can sell a January $14 put and receive about 54¢. The quarterly dividend is 28¢ and it just went ex-dividend, so, even if you sell it, you’ll still get the dividend on November 1st.

Some articles and links posted in the chat this past week:

Bloomberg Amazon Strategy Could Unlock $100 Billion in Revenue

Persephone Biosciences and Ginkgo Bioworks Complete Reusable Bacteroides Anaerobic Engineering Toolkit

https://www.ir.plugpower.com/press-releases/news-details/2023/Arcadia-eFuels-TapsPlugPowerfor-280-MW-ElectrolyzerSystem/default.aspxhttps://seekingalpha.com/embed/24912

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