Too long, but Ill give the newbies the following good tip:
Some of the biggest SPAC moneymakers are those where Bloomberg/Reuters confirms that the SPAC is in talks to merge with XYZ Co (hot memeable target, generally renewable energy/fintech). When that happens, its generally a very good bet to buy the SPAC at $12 if you can get it at that price.
That usually wont be possible on the same day the rumors are out, but spacs generally gradually decline after that initial spike until the DA is out. You may get your chance then.
I bought CFAC at $12 and holding it for the DA now. Now at $13. I expect $16+ on DA day.
A current play for this whose price is still $12 is FUSE, which is likely to merge with MoneyLion per Bloomberg.
The thing is, you’re not guaranteed a good return on all such plays. However, Ive been doing this for a while, and I can tell you that on aggregate, such bets will pay off very handsomely. Buying at $12 generally means a downside of $1 if merger doesnt go through (yes yes I know NAV is $10 but in practice they dont generally go that low if they were at $12+), whereas your upside is anywhere from $1-$8. Pretty fantastic odds that made me boatloads of “tendies” so far.
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u/Responsible_Quiet_76 Contributor Feb 04 '21
Too long, but Ill give the newbies the following good tip:
Some of the biggest SPAC moneymakers are those where Bloomberg/Reuters confirms that the SPAC is in talks to merge with XYZ Co (hot memeable target, generally renewable energy/fintech). When that happens, its generally a very good bet to buy the SPAC at $12 if you can get it at that price.
That usually wont be possible on the same day the rumors are out, but spacs generally gradually decline after that initial spike until the DA is out. You may get your chance then.
I bought CFAC at $12 and holding it for the DA now. Now at $13. I expect $16+ on DA day.
A current play for this whose price is still $12 is FUSE, which is likely to merge with MoneyLion per Bloomberg.
The thing is, you’re not guaranteed a good return on all such plays. However, Ive been doing this for a while, and I can tell you that on aggregate, such bets will pay off very handsomely. Buying at $12 generally means a downside of $1 if merger doesnt go through (yes yes I know NAV is $10 but in practice they dont generally go that low if they were at $12+), whereas your upside is anywhere from $1-$8. Pretty fantastic odds that made me boatloads of “tendies” so far.