Update on CFLT Position

Couple of weeks ago I posted about opening a new CC shortly after CFLT IPO. Stock price did go up after establishing the position only to start a sustained decline……until last week when the stock recovered.

Last week was an interesting time for the banks/analysts to come out with strong upgrades and new target prices pushing the price up …..considering the IPO lock up expires on Monday……

Little nervous heading into next week so we wrote ITM calls at $40 (Sep).

Position looks good today with a 54% annualized return…..might feel different next Saturday….hopefully not but can’t say I have a lot of trust in the bankers…….

Black line in the graph is the net of the stock and option profitability. They were mostly offsetting until the last week.