/biz/ - Business & Finance

suncor short 28c long 20c

>>29396136
it (was) trading under book value
KXL isn't as big a deal as media puts it out for canadian oil because of TMX, the more important pipeline which is now seeing no real political obstacle because of KXL
Crude oil WTI is over $50.. over $60 now actually

It's ultimately going to be only a 2x at most in a year, but nothing's stopping you from leveraging yourself with options especially with the low downside potential. Pic related was what a credit spread (long 20c, short 28c) looked like if you bought it a month ago. You can turn boomer gains into a fucking 6x and all Suncor has to do is expire above $28 in a year, and this one is a pretty conservative spread with breakeven around $22

LEAPS on these boomer shit were already 5-baggers (or even 10-baggers in the case of TD for example) the past few months. But everyone ignores these opportunities because they chase meme pumps instead with high IV so options aren't even good risk-reward

>>29388648
SPREADS ARE THE BEST

Why didn't you buy credit spreads on Suncor last month for an easy 6x after a year????
Short 28c, long 20c

>>28898179
look at the book value, i like it better than XOM precisely because of the negative sentiment around SU slashing its dividends earlier through the pandemic. sucks for bagholder shareholders who bought in early, but i bought it at the nearbottom

It's ultimately boomer gains (a 2x after a year which is pretty tame in this clown market) but that risk-reward makes it so you can feel comfortable putting a large chuink of your portfolio in it.
Buy LEAPS/spreads if you want to leverage that boomer gain into 3x or even 5x, your breakeven on those kinda gains will be somewhere around $22 at this point which is pretty good risk-reward

pic related is like a month outdated though
>buy 20c sell 28c expiry Jan 2022
it's more like 3x/4x now instead of 5x