Trade Alert: Locking In The Big Profits On The DELL Calls, Space, Crypto Craze Or Criminalization, EV To VR And More
Here’s the transcript from this week’s Trading With Cody Live Q&A Chat.
Q. At what price would you be adding to your space stocks?
A. I add to VACQ every time it goes down another 2-3% (which has been often). I nibble some SFTW every once in a while. I’ve not added much to the others if at all.
Q. How much of a technological/knowledge “lead” do you feel SpaceX has over Rocket Lab? There have been articles written that Rocket Lab is a “baby” SpaceX. I would like to know your thoughts.
A. SpaceX is 3-10 years ahead of everybody. Blue Origin is the closest competitor, then Rocket Lab, then Boeing/Lockheed, then the rest are just trying to figure out how to shoot rockets without blowing them up.
Q. What is your allocations within your space basket? Thank you!
A. SpaceX, then VACQ, then SFTW and then the others.
Q. Are you buying more VACQ today?
A. I’d mentioned above that I nibble a little VACQ whenever it goes down another 2-3% and today it’s done that and yes I just nibbled a tiny bit more in the hedge fund today.
Q. Cody, any thoughts on Richard Branson’s sales of SPCE shares?
A. Yes, I’m pissed to see that both he and Chamath are still unloading shares. SPCE is not a big position for me right now since I’d trimmed it at much higher levels, but I’m holding onto the shares I have at least for now.
Q. Do you see a big risk for bitcoin and Eth if they would start to regulate it? Coinbase CEO Brian Armstrong said that regulations are one of the biggest risks when it comes to the cryptocurrency business. How it could affect prices?
A. Yes, as I’d mentioned in this article where I again explained that bitcoin is the most likely currency to replace the US Dollar as the world’s reserve currency as I’ve been saying for eight years now: “And of course, maybe the world starts trying criminalize cryptocurrencies like bitcoin and so gold and silver become increasingly valuable stores of value again. And of course, the US dollar is still, as always, the cleanest shirt in the fiat currency laundry basket, so it will likely remain at least increasingly more valuable than the China/Europe/Russia/Etc fiat currencies, just as it always has for the last hundred plus years.”
Q. Cody, at what price are you interested in COIN?
A. Maybe under $300 or so I’ll start to warm up to it. Below $200 and I’m pretty sure I’d be a buyer.
Q. Eventually Crypto prices will correct (they always do, eventually, and often they correct hard). At what price would you be a buyer of BTC and ETH?
A. I’d be a buyer of BTC under $60,000 and then again under $50k and every $5k down from there. I’d be a buyer of ETH under $2000 and every $200 down from there.
Q. Cody, other than Bitcoin futures, what would you buy to get exposure?
A. I own bitcoin personally for the last eight years and still do. I think it’s still the safest way to play crypto. Ethereum rocks and has a lot of potential upside too. There’s one other much smaller crypto that I like that I’m still working on though.
Q. Aside from TSLA, do you find some of the other EV companies attractive? I am looking at FSR (Fisker). Do you have any on your radar? I imagine there is enough space for more than TSLA and the legacy car companies.
A. Most of the other EV stocks look as overvalued as TSLA looks but without any of the foundational success and revenues. So, no.
Q. Cody, at what price would you buy some more $FB?
A. I still rate FB an 8 out of 10, so…I guess I like it here.
Q. Have you had a chance to check GHVI – Matterport – largest 3D spatial library in the world. Thinking of this as a VR play?
A. Yes, we’re working on it still.
Q. Good morning. What do you think about JMIA here? Worth a nibble in the mid $30’s?
A. I’m still long JMIA from like $14 or something and I trimmed some higher but I’m not looking to add any back to it right now. It, like most small cap tech stocks, is probably still overvalued.
Q. With the amount of money Intel and TSM are spending on upgrading their facilities to increase chip production, are their companies to take advantage of the increased spending?
A. Yes, the semi cap companies that make the equipment that goes into the semiconductor factories. We had AMAT at, ugh so painful to say…at $14 here on Trading With Cody about five years ago or so: “Applied Materials – I’m buying some common stock in this name, maybe 1/4th position here near $15 per share and would like to build it up closer to $13 or even $12 a share if we get another market mini-crash that takes this name down again. $AMAT is one of the best-run semiconductor equipment suppliers and the stock has been crushed lately, down 50% to near 52-week lows because the cycle of spending from their semiconductor customers is looking like its peaked or is peaking at least. Trading at 12x next year’s earnings estimates, though topline growth is likely to be only in the single digits. You get a 2.6% dividend which is way better than a savings account while you wait for the cycle to turn.” Again, to be clear that was five years ago before the stock went up 10-fold. These days, it’s now at $133 and I feel like I’ve missed the cycle even though there’s clearly a lot more near-term growth for the company and others like KLAC that sell stuff to Intel and TSM to make factories.
Q. Cody. $DELL is splitting out $VMW. How is your view of it?
A. I’m selling most of the rest of the April Dell calls that I have left on the sheets today for $20 each (we paid less than $3 for them). Over the course of the next week, I will sell all of those and all of my July DELL calls that are up similarly and move on. Consider this a Trade Alert that I am closing out my Dell trade for a big win.
Q. What do you do with DELL calls? What do you recommend for us who hold common stock?
A. See above, I’m getting out of the very successful DELL trade. That’s all I can tell you.
Q. You mentioned a week or so ago that you would be reviewing alternative energy solar etc stocks. Was looking forward to hearing about what looked good now.
A. A lot of solar stocks look a little bubbled up making valuations challenging, but I’m working on it.
Thanks for the questions everybody. Have a great weekend!
I leave you all with a beautiful sunset and a kid in the front making a face that will make you chuckle:
