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Frank A's avatar

Thank you for the input. Really appreciate it

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Frank A's avatar

Great post. I'm currently long SOC myself. Are you only long equities, or do you suggest call options too? I realize that adds more risk (and reward).

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Welfare Capital's avatar

I actually sold my stake in SOC in early April on oil price fears, taking a small loss. I will be looking to get back in with a smaller position when my wash sale period is over, but it could depend on the Macro outlook I suppose…. not that I’m any good at macro, haha. Im also not as sure of the options potential, generally I prefer shares because they’re more concrete, but it could really depend. I’d be hesitant to go in with calls because we don’t know when exactly a production restart could occur. But you could also argue, if production never gets restarted and the equity thesis is invalid, the shares might as well be worthless, and you could take an options position that controls the same notional value of shares for a cheaper price than buying shares outright, saving yourself some money if the equity thesis proves to be wrong. Really it’s up to you! Positives and drawbacks to everything

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