59 South said:
So OA, I did my own personal mass accumulation of ENVX earlier this year in the 9.50 - 13 range and very close to net free a ridiculous number of shares. So you're saying I should take the invested capital back and rotate to ASAN ? I've seen lots of insider buying this year so good sign eh?
#1 Congrats on studying a stock and making it a MA commitment. As far as recapturing initial capital and leaving planted net free stocks, I would look back to Sept last year and you can see a big order block period up to $25. That would be me phasing highest end target to be net free. But it chopped from $18's to $25 so we are in the near middle of that and could see some consolidation after a great move. If I had a MA position in it I would sell 25% soon/now and enter an Aug 18 covered calls for $2+ on the $21 strikes. Net $23 or reduce holding of that 25% by $2 is a win in my book.
They report Aug 9, so I'd see how the stock behaves for next week and maybe buy back the call if consolidates to earn you over $1 of that $2 premium.
Alternatively, I would consider using $1.35 of all those gains to buy August 11 $18 puts. Those will take you through earnings and if the stock explodes who cares about $1.35! If it disappoints then you score on your protective strategy.
As for using your gains to buy ASAN, I'd use a combo approach of selling naked Puts out 45 days that would equate to 50% of desired position and then buy 50% of a desired 100% total holding.