Happy Star Wars Day! I took a walk while listening to a Bloomberg Wealth Conference and decided to liquidate our long-dated call option on Real Real (REAL; strike: $20; expiration: 20JAN2023). Real Real isn’t a recommendation on any of our services, but, in last November, I heard of it on a podcast from The Motley Fool and bought two call option contracts with long dated expirations. The first contract was closed after just 22 days for a 75% gain and today we closed the second contract for a 95.5% (155 days after it opened).
We need liquidity in our portfolio – roughly just 10% is not invested or covering a put short position in a put option. I have no real conviction for REAL; it’s an online clothing consignment/reseller that has not been an official recommendation by our newsletters. This was a speculative investment and I am glad to have an $866.11 return on $1,011.95 invested. We didn’t make a killing, but I’ll take it and cut bait.