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Stocks A to Z / Stocks U / Upstart Holdings (UPST)
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Author: hiphop   😊 😞
Number: of 116 
Subject: Cash covered PUTS on UPST
Date: 12/24/2022 9:31 AM
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Hi All,

If you are still interested (or at least still believe in) UPST and want to invest, it would seem to me that cash covered puts are the most interesting position. Note that these are leveraged, and probably *NOT* a good idea, but just so everyone has an idea of what the numbers are:

Date     Strike  %ITM   Cash Req'd   Target         %return  Annualized  Income/Contract   Days to Go  UPST FOMO
 Jan-23  13      1.52%   $    11.80   $       1.20  10.17%   270.35%      $        120.00  27          14.2
 Feb-23  12.5    5.30%   $    10.60   $       1.90  17.92%   198.67%      $        190.00  55          14.4
 Mar-23  12.5    5.30%   $    10.10   $       2.40  23.76%   155.37%      $        240.00  83          14.9


So, basically, reading against this it means that the Feb 12.5 UPST PUT gives you an absolute return of 17.92% of money at risk, holding for 55 days, and it has to drop below 10.6 to lose money. You would have been better off buying the stock if it rises to 14.4 over those 55 days.

Still that is a rather hefty return (just short of 200% annualized).

-Gabriel (aka: HipHop)
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