LBTYA is interesting. I think they are flying under the radar due to a complex web of M&A activity and partnerships in Europe with 02 and Virgin Media - so there's no way to effectively judge their current financials but 02 was the 2nd largest Telco in the UK and they are making similar deals in many countries. Last year they recognized $13.4Bn in profits against a $14Bn market cap but this year will be flat and 2020 they lost $1.6Bn but 2019 they made $11.5Bn - so it's that kind of company.
If they had 2024 options, they'd be a no-brainer but, over the short-run (October), anything could happen so I'm just watching out of curiosity. If something goes wrong and they hit $20 - I'd be pretty interested.
Also getting no respect is MT, where $32.80 is $30.3Bn in market cap and these guys easily make $4Bn/yr. They lost $3Bn combined in 2019 and 2020 but made $15Bn last year so more than made up for it. I still think Infrastructure Spending will be a thing this decade - just look at all the rebuilding Ukraine has to do! We sold the 2024 $30 puts in the LTP for $7.50 back on Oct 1st and those are still $5.75 and net $24.25 is still good for a new trade but, since we can sell the June $35 calls for $1.75, this makes sense to add in the LTP:
- Buy 25 MT 2024 $30 calls for $9.25 ($23,125)
- Sell 20 MT 2024 $40 calls for $5.50 ($11,000)
- Sell 10 MT June $35 calls for $1.75 ($1,750)
That's net $10,375 but we sold the short puts for $7,500 already so net $2,875 on the $25,000 spread and we've sold $1,750 in short calls using 79 of the 660 we have to sell so let's say we sell 7 more $1,750s for $10,500 - that should work us into a nifty credit over time and it's not likely 5 extra short calls will get us into trouble and if MT really pops - we're more than happy to buy more.
