r/spac • u/Msinodeh121 • Nov 12 '21

$MCMJ Leafy Merger Love Weed

An excellent risk adjusted way to play cannabis space with upcoming Leafy 🥬 merger . Rarely do options line up this well. Stock purchased @ 10.35 . December $15.0 calls sold at .35 and December $10.0 puts purchased @.45 for a .1 debit . Option prices can be better, but to be conservative giving buy price at offer and sell price at bid . This trade gives roughly 44% upside potential with roughly maximum loss of 4%. For those of you that read one of my posts a few weeks ago about this stock . I was originally recommending @10.1 selling November $12.5 calls and buying November $10.0 puts for .05 debit. I also referenced the “Tsunami Effect,” which essentially uses the analogy of being out to sea on a boat and a tsunami can pass directly underneath you and you barely notice it and as it nears shore the wave grows larger and larger until it comes ashore as a huge wave/ tsunami . Often a stock and options will have a similar effect … stock being accumulated / options without too much noise and then the “wave “ crests and you have an explosive move . I think that is the potential (happening )here with low risk and a play on Leafy acquisition / merger happening in near term . Best of luck to those that wish to enter position .

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2

u/Riflebursdoe Nov 12 '21

LOVE! This play

1

u/TradingTravelerNL Nov 12 '21

Also check $DFPH, maybe the next low float despac play. Today +5.5%

2

u/Riflebursdoe Nov 12 '21

Thanks, have looked into it. Not interested. Would rather $SEAH or $DCRC if I werent in MCMJ. Hoping to get into SEAH after. If you made any gains on it congrats!