Thoughts...I woke up today around 10:30am and opened my computer and I wish I could have seen my face when I saw what was happening. I did not expect to be writing about cannabis until January. I can't believe that a slow business day has turned into this. I am not going to bother even speculating about what is going on today. I can only tell you what my thoughts are:
1. My covered call on 10,000 shares at $25 that expires in April is going to get exercised for sure. I have to pay more tax in 2017 I think because of this. In terms of what I do with the $250,000 from the exercised shares I have to think about whether I buy the shares back or wait or invest in something else. I'm going to have to think about it. I still like WEED all the way up to a $10 billion market cap right now and could see just buying back the shares and putting covered calls at $50 on the shares.
2. I could also diversify the $250,000 to some smaller players. Start making my own ETF type thing. I coul mirror what is already out there to a degree with a much heavier WEED percentage than what the ETF's have. I mean even if I took $250,000 and threw it into 5 small players like Cronos, MedReleaf, Mari, ABCann my percentage of WEED would still be in the 95% plus range. I'm actually thinking of taking the $250,000 and sticking it all in Cronos. I like the guy managing Cronos a hell of a lot better than I like any of the other small guys. Thoughts?
3. So I'm actually thinking of diversifying to other WEED plays even though I think WEED is by far the best value even with this run up. I think 2018 will be the year I start to move money into some other plays, but I will have the lions share in WEED for many years to come I think.
Anyway, good luck to all of you! Be well!!!