I'd say you need to do both - buy stocks for their asymmetry and more liquid stocks for options trading (if that's your thing). I think it's important to admit that Nam Cheong inflicting that quickly was PURE luck. It could have easily taken several months to do the same. Asymmetry would still be there, but not immediate results to substitute your income.
Yes, I completely agree, I’ve was telling friends and family a 1-3 year timeframe for Nam Cheong (I did say that trying to time the market in the short term is a mugs game).
That setup was perfect: brutally dumped on re-listing, sellers exhausted, earnings inflecting, and a seriously committed CEO. When these factors align, even over a 1-3 year period, the returns can outweigh those from options selling (as was the case for me). Now, I think it's worth my time to look for the next opportunity like that, especially as I see the potential for oil to inflect significantly within the next two years.
My suggestion (and what I did here): when a trade like this comes along again—lean into it, even if it means sacrificing some trading capital.
I'd say you need to do both - buy stocks for their asymmetry and more liquid stocks for options trading (if that's your thing). I think it's important to admit that Nam Cheong inflicting that quickly was PURE luck. It could have easily taken several months to do the same. Asymmetry would still be there, but not immediate results to substitute your income.
Yes, I completely agree, I’ve was telling friends and family a 1-3 year timeframe for Nam Cheong (I did say that trying to time the market in the short term is a mugs game).
That setup was perfect: brutally dumped on re-listing, sellers exhausted, earnings inflecting, and a seriously committed CEO. When these factors align, even over a 1-3 year period, the returns can outweigh those from options selling (as was the case for me). Now, I think it's worth my time to look for the next opportunity like that, especially as I see the potential for oil to inflect significantly within the next two years.
My suggestion (and what I did here): when a trade like this comes along again—lean into it, even if it means sacrificing some trading capital.
But I like your take, do both if you can.
Great stuff. This is also the way I’m leaning. Keep posting, your articles are hitting home and a good inspiration!
Cheers Ryan! Appreciate the feedback 🤝
Loved this write-up Jordan.
Thanks Alexander 🤝
Always useful comments Jordan, thanks!
Thanks Enrique. 🤝