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A Wall Street boss once told me that there are a lot of smart people on the Bowery. skill is for ego. We all try to prove our skill by beating the SPX. Think about that. Better to be dumb and rich than “smart” and poor.

I heard the same thing in 2002. I also heard the same thing in 2009. I heard it in 2012 as well. I heard it in 2019. 2020. 2021. 2022. 2023. The SPX is a tough benchmark to beat. That’s why people are proud of themselves when they do it. Think about that.

when I left Wall Street, I realized the richest people in finance were permabulls.

This is why you are one of the most valuable posters on this site.

DEATH BONDS!

here’s the thing about the convertibles. If bitcoin rallies then the convertibles becomes shares and dilute the current shareholders. If bitcoin sells off it becomes debt that the shareholders Have to repay. So saylor is selling puts on bitcoin with this transaction while monetizing all the dumb...

yeah. That’s a smart thing to do. He’s doing the arb I told you about.

MSTR selling delta in their own stock.... why would they do that. Going to the MOON they are.

convertibles are bonds with call opions. On the downside they are debt. on the upside they are stock.

If you are right, that would have been a buying opportunity. I think they had 2Bn of debt, not 200MM. The operating business does about 200MM/year in Gross profit. the operating business lost 1Bn in 2022 in EBIT. I don't understand this part but its a discussion i'm having with another person...

the issue on the downside was that they had borrowed to buy the bitcoin so technically they were insolvent. Now bitcoin is so high that it’s really just a wallet with a small software business.

you short Mstr and buy bitcoin. eventually the market has to resolve. the problem is that the market can stay irrational for a long time (like it did with the discount of the greyscale trusts)

the price action is an arbitrage opportunity.

no. I stated how both situations are the same. and you’ve posted a total of 5 words on this thread and none of them saying anything useful

Why should mstr go up more (in percent terms) than bitcoin?

he has a point. I bought mine used.

ooh. I’m on ignore. A fool says something stupid. He keeps doubling down. Says a stupider thing. And gets upset.

typical response. Keep doubling down on being dumb. I await your post where you say “this technical indicator is riskless” or “cash secured puts are free income.”

I’m not the one comparing a zero risk asset to actively trading stocks and then doubling down on that assertion. you havent shown me a zero tax zero risk stock. After this thread, your respect and an empty sack is worth the value of the sack.