IPOC: Playing With SPACs
Special Situations, Options, Portfolio Strategy, Growth
Seeking Alpha Analyst Since 2014
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Summary
- I have one of those friends who always seems to pick the right stocks. I say he has the Midas touch.
- He's been doing well playing the spikes on news around SPAC mergers. Several 5+ baggers this year.
- Today he bought some IPOC and told me to do the same. So I did.
- You should too because my friend rocks.
Diversification is the cure for ignorance. I'm never always right, so I diversify. Not only across investment classes and sectors, but also across different investment and trading systems and strategies. One of my trading systems is to trust my friend Jay.
Sometimes you just have to trust your winners. Jay is a winner. The last six years or so he has yielded annual returns that double or triple the S&P. He spends a lot of time researching fundamentals, real world facts, and he has excellent judgment for predicting the future. I often follow his suggestions.
Today he suggested IPOC after be bought some shares. They will merge with Clover (CLOV) on January 8, 2021.
Who has two thumbs and now owns some January 15 calls in IPOC? This guy.
Here is a good article on the deal:
I note that the January 10 calls are only $2, while the stock trades at $11.25. That is wicked low time premium for a merging SPAC, especially when you consider that the 12.50 calls are $1.35.
Happy investing!
P.S. Did you see the short interest on CVM has gone up over 40%? Is there such a thing as a reverse bubble? Who is left to sell it? Happily long CVM and a true believer in their mission and their leader.
Analyst's Disclosure: I am/we are long cvm, ipoc, kndi, riot, veri, lazr, DM.
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