HYMC

I have no way of knowing how much this is sober analysis and how much hype — but I like it:

HYCROFT MINING (HYMC) -67% OFF ITS HIGHS: the Weak Hands are Gone, Eric Sprott and BlackRock are Still in, the 56-Month Cash Runway & why the World Class Nevada Deposit has Never Been More Valuable!

The thing is, especially for those of us who sold calls as the stock was soaring to 60, even here at $20 a share, we’ve done kind of spectacularly well.  And in a perfect world, those calls, expiring in January of 2027 and January of 2028, will expire worthless, so we get to keep all the money we sold them for, even as the stock creeps back up toward their strike prices.

Extreme example:  I was able to sell some January 2028 calls for $2,800 each giving the buyer the right to buy 100 of my shares for $60 each until January 2028.  (Calls are traded 100 shares at a time.)

At the time, the buyer may have figured, heck, it’s rocketed up from $5 to $60 — it could be $200 in a couple of years, so paying the equivalent of $88 ($60 + $28) will prove to have been a bargain.  Plus, if it turns out to be a scam, I’ll have lost $28 instead of $60.

But from my point of view, if the stock never goes back up, I have the $20 it’s selling for now plus the $28 I get to keep — not bad on a $3 bet.  And if it goes to zero, I still keep the $28 — not terrible.  And if it creeps back up to $60 by January, 2028 when the calls expire, I have the $60 stock and keep the $28 per share I got for the calls.

That’s my extreme example, because many of the calls I sold were at lower strike prices and/or for less rich premiums . . . as I expect was true for you as well if you were in on this one.

Still, I’m a happy camper — and happily holding on in hopes there’s more to that headline than hype.

“PUTIN THE PUPPETEER”

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