Profit Strategies
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Hi everyone- I’m interested in hearing about strategies for building profits with Bitcoin treasury companies and preferred stock offerings. If anyone’s willing to share approaches that have worked well for them, I’d really appreciate your insights! Thanks in advance.
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One thing you can do is buy long dated calls (Leaps) with 1% to 2% of your capital.
For me personally, that resulted in some calls with 21,000% return, since I bought them during the bottom of the bear market and MSTR did a 30x from then till end of 2024 (calls were 210x). Even if it was only 1-2% of my capital, it had an immense impact on my portfolio.
If they expire worthless (the calls I bought in 2020 did expire worthless in 2022), they act as insurance in case the company rallies up massively.
In my case, I "renewed" my insurance period by another 2 years.
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When you do this, do you typically buy deep ITM calls to have more delta and less impact due to time decay.... or do you buy OTM calls to control more shares and have smaller premiums on the front end? For example, with MSTR at ~$380 right now.... would you set your strike at $330 to start ITM and have more delta.... or would you set your strike at $430 to control more shares?
And is there a particular reason you do it for 2 years as opposed to 1-2 years?
Thanks.
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In my view, the sweet spot for MSTR is OTM calls that are cheap enough to offer strong leverage, but not so far out of the money that the odds of profiting drop to near zero if the plan is to exercise.
I once bought $30 calls for pennies when the stock was trading at $15. I wasn’t betting on it going to $500 — I was aiming for something like $100, which would’ve still delivered far better returns than simply holding the stock, while leaving room for explosive upside.
This kind of trade gives you leveraged upside exposure (in my case, 21,000%) while still being somewhat conservative.
You take the longest view possible — because you’re betting on being directionally right, not on timing the exact move.
