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Best Options For SPAC Winners

Sep. 23, 2020 2:49 PM ETDraftKings Inc. (DKNG), DKNGZ, PRPL, RPAY, SMPL, UTZ, NKLA, NKLAWNRG
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Hedge Fund Manager, Value, Event Driven, Special Situations

Seeking Alpha Analyst Since 2011

Summary

  • 6 SPACs that consummated deals worth buy writing.
  • Each has performed well but worth writing calls against now.
  • NKLA is the one exception -- that one I would just sell.

Among the biggest SPAC winners to date, many are worth buy writing today. The one exception is NKLA, which I would prefer to simply sell.

Here are some options strategies that might be worth considering for equities that you’re ridden from $10 all the way up.

SPAC

Ticker

Price

Buy writing ideas

Diamond Eagle

(DKNG)

$53.11

Write Oct 16 $50 calls for $5.30

Thunder Bridge

(RPAY)

$24.61

Write Oct 16 $25 calls for $1.13

Global Partner

(PRPL)

$24.20

Write Oct 16 $25 calls for $1.23

Conyers Park

(SMPL)

$21.74

Write Oct 16 $22.50 calls for $0.70

Mosaic

(VVNT)

$17.31

Write Oct 16 $17.50 calls for $0.74

Collier Creek

(UTZ)

$17.28

Write Oct 16 $17.50 calls for $0.65

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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