/biz/ - Business & Finance

>>28697440
why not, there's a bunch of value traps like oil which are have very limited downside (given that they're already at or even under book value, cashburn stopped since crude oil is mooning, etc etc) but with very obvious recovery expected this year
Like this is just shitty boomer gains like +50% over the whole year, something people will get in a month or even a week with moonshot gambles BUT it's something you can reasonable put 5-figures into. They're shitty boomer gains but you can leverage with safe 2022 or 2023 ITM calls to turn that into a pretty safe 2x. Maybe 4x if you're a bit more risky

Pic related a credit spread on Suncor. It would potentially be over 4x by expiry if you entered a month ago. 4x if Suncor goes to a boring $30 by January 2022, and your breakeven is a bit over $20

The only reason I'm only doing LEAPS on Suncor instead is because I can't do spreads in my tax-free account