Apr. 17 at 8:13 PM
$TSLY $CRSH doing a pair trade like that other person, reinvesting all dividends. However, I took a look at the distributions and calculated over the past 12 months how much was received in relation to share price.
With that I used
$TSLY calls and puts due to having some liquidity versus none for
$CRSH. I bought OTM calls and puts that I roll around 30-35 days to avoid theta. I based these on past NAV degradation to hedge my positions. So far it’s working perfectly and just rolled my
$TSLY May
$31 calls to June monthlies. I also already had rolled my
$TSLY puts to June last week.
First quarter I had a 25% return on this pair trade. The high IV in
$TSLA makes these great YieldMax pair trades but it takes a lot of paying attention to distributions and NAV but an AI can set that up for you pretty easily.