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by danielmarkbruce 1356 days ago
"Outperformed" = past, "will outperform" = future, "outperforms" implies either present tense, or generally. Neither makes sense here.

Stock down 62% ytd = avoid ...isn't great logic. But, no need to check back in in 5 years, there is easy money here to be had - just write a bunch of DOCU call options, long dated. Invest all the proceeds in the 5 year bond.

1 comments

lol, are you really advising people to sell optiions?
Yes, people who believe it's highly likely the 5 year yielding 4% will outperform DOCU (or "most tech companies") over the next 5 years should absolutely be selling call options. The current option prices imply it's likely that the opposite will occur. So, it's a great bet EV wise for said people.

For those worried about "unlimited loss", just buy a wildly out of the money call, well above the price they sell them at.

Easy money - assuming it is in fact "highly unlikely" that the stock will outperform the 5 year bond.