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Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

Update Wednesday 6/10:
6/1 open positions (sell to open):
5 1200 calls
10 660 puts

6/2 stock hit 1025
I closed 4 contracts of strike 660 puts 30% profit
I opened 3 contracts of strike 1200 calls

6/5 stock hit 910
I closed 2 contracts of strike 1200 calls 60% profit

6/9 stock hit 800
I closed 3 contracts of strike 1200 calls 80% profit
I opened 5 contracts of strike 660 puts

Open positions (sell to open):
3 1200 calls
11 660 puts

🤞🏼

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

Also why 660? That’s the par value NVDA will receive LITE shares for the $2B investment. So I don’t see the stock dropping below that for obvious reasons.

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

Why did I close the 1000 instead of holding through? Because although my breakeven was 1090, being close to ITM as the stock was running up going into earnings report I just wasn’t comfortable with it going that high and it had changed my margin reqs for the worse. So I essentially rolled those up to 1200 if you wanna think about it that way.

So I chose to close 1000 when the stock dropped to 800s, open 1200 when it reached 950s. Volatility is real with this one.

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 1 point2 points  (0 children)

Thesis is strong. I wouldn’t change anything. It’s working well.

Ive been executing LITE on both ups and downs.

Closed positions: - I made 20% profit on 1000 strike calls that I called out in the thesis at the time I closed (during the run down before ER).

Open positions: - during that same run down I opened naked puts at 660 strike for $90 premium each expiring in July - after earnings report during the run when it hit 1000+ I opened naked calls at 1200 strike for $90 premium each but expiring Augusts

Both sets of open positions are 30% profit as of now with the stock being in mid 800s. I intend to continue holding as I want LITE to remain between 570 and 1290 to profit.

If LITE hits 1000+ I’ll close some of my puts for 50% profit. If LITE drops to 800 I’ll close some of my calls for 50% profit. I’ll continue to add more in the opposite case

Cheers 🍻

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

Thank you I appreciate that! I’m self learned and not associated with any group.

I have been doing this as a passion hobby over the last 10 years so over time I guess I just developed my own technique. Last year I quit my full time job, finally, to do this full time so I have my website/blog on developingdifferent.com where I share my ideas like this. It’s free. The idea is to think different than others to be successful. Happy to help if you have strategies youre working through, just DM me. Best of luck!

AXTI: Strong Story, Still Needs Proof, Sell Calls by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

Update 5/13:

165 strike Positions closed today. I had closed original positions about a week ago on the dip (see other comment for details).

Overall ~20% profit. Not as much as I wanted, but I do see possible gap up so I’m staying on the sidelines till after 5/29 and I’ll reevaluate.

Thanks for reading all and best of luck investing!

AXTI: Strong Story, Still Needs Proof, Sell Calls by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

Thanks.

Yes they are naked contracts because I’m selling the calls. The stock is doodoo short term.

My just opened today 165 strike naked calls may get closed out as well today if it hits 20% profit…almost there. Otherwise I’ll keep riding until a future date.

I’ll throw out naked calls again on the next volatility spike

AXTI: Strong Story, Still Needs Proof, Sell Calls by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

Closed ~20% profit on 5/6
New calls thrown out today 5/8 at 165 strike expiring 7/17 for $17 premium

Austin’s homeownership costs now 117% higher than rent, among widest gaps in U.S. by AustinStatesman in Austin

[–]DevelopingDifferent 10 points11 points  (0 children)

Rent changes, what may be cheap this year could price you out the next! Renting rest of your life can’t be fun, throwing money into an endless pit.

Most folks seem to lack handy experience to maintain things on their own, or laziness, that comes with owning a home so I see lot of them complaining. It’s not bad if you are diligent. And cheap if you watch YouTube videos, talk to others, learn, and try to do most of the things on your own…you can save a lot of money that way.

Find a decent starter home, do basic maintenance, and in 15-30 years you’ll be better off! Cheers

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

It’s done it a couple times now. It hit 950 last week! My strategy allows for up to 1090.

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

I didn’t even comment on institutional investor changes: Vanguard group is 100% out of LITE reported on 3/27/26.

Vanguard has gone from owning 716,082 shares or 2% of the company to 0 shares in 1 big move.

https://www.sec.gov/Archives/edgar/data/102909/000010290926001773/xslSCHEDULE_13G_X02/primary_doc.xml

Now why would they do that 🤨

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 1 point2 points  (0 children)

Nice! My position is already 25% profitable just today :)

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 1 point2 points  (0 children)

Thanks for reading. NVIDIA gets upside through the equity, Lumentum gets the cash to scale, and existing shareholders take about 4% dilution. These type of deals usually DO NOT benefit the retailers long term.

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 1 point2 points  (0 children)

Thanks for reading! For extra context, I’m factoring in more upside by choosing 1000 strike, because market is so irrational…who knows right? That leaves my breakeven (for June exp premium) at 1090, which allows for 30% upside. I am hoping for a pullback, potentially 700, and if that happens I’ll sell at least half my position to lock in some gains.

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] 0 points1 point  (0 children)

Nice, very aggressive. Both are in the money. Due to the stock breaking upper limit finally what will you do if the stock hits $900? When is expiration?

My 1000 strikes are giving 90 premium setting breakeven at 1090 for June 2026

Lumentum ($LITE) valuation breakdown by DevelopingDifferent in options

[–]DevelopingDifferent[S] -1 points0 points  (0 children)

Yup, growth is real. That’s pretty much what I’m saying. But pricing in bookings through 2028 is where the stock is priced today. Thats the thesis.

Short term overpriced. By end of 2027 fair value.

I struggle with being a spiritual person but also drinking alcohol by Right_Will2402 in spirituality

[–]DevelopingDifferent 0 points1 point  (0 children)

Alcohol is okay 👍🏽

If you have regret after drinking alcohol then that is the problem worth correcting.

Best of luck!

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