Hi Everyone
This week if you own CONY, our covered call hedge fund on Coinbase, you collected a 75% yield dividend given today’s price of $9.25. FIAT, the put fund on Coinbase, paid a 94% yield at only $3.40/sh current price. With regards to dividend returns, we keep making money with both up and down movements of Coinbase.
You may have noticed a price recovery starting in COIN and CONY with a corresponding drop in FIAT. This potentially makes FIAT even more profitable as puts will expire worthless if COIN keeps climbing. But both are potential bargains right now and here is what is going on.The news was the driving factor encouraging folks to buy Coinbase. Fox Business News broadcast a story that Coinbase is going to become the “AMAZON of Crypto.” Consider the Stablecoin movement within Congress that will tie Crypto to the Dollar. With Coinbase as a primary clearinghouse, and Trump’s comments today about the current size of the crypto industry and the near term encouragment of commerce with digital currency, it is not hard to imagine COIN reaching the predicted $525/sh. along with that there could be lots of call speculating and put insurance being sold —– more $$$ for greedy little us as CONY stockholders.
This may be a good time to bargain buy CONY and FIAT.
Regards,
Clint