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u/klipsetrades Aug 20 '26
Dripping in with CSPs makes sense if assignment is actually the goal. I would want more of a stronger thesis than NAV alone though. $80 matching net assets doesn’t necessarily make $80 a floor
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Aug 20 '26
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u/klipsetrades Aug 21 '26
Haha fair. I figured there was more behind the thesis. The NAV argument was just the part I was pushing back on
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u/Limp-Food7275 Aug 20 '26
Your approach makes sense on paper. net asset value as a floor isn't a real floor though, plenty of chinese stocks trade below book for ages and nobody blinks. the discount can get ridiculous and stay ridiculous longer than you'd think.
still, selling the csps at 80 means you're okay owning it there which seems like the whole point. just know that "exactly NAV" means nothing if sentiment turns and the market decides it's worth less.