NVO Put and Call Options in the 1/11/26 update

[Harn]

Hi Sol and investors,

I'm confused by the put option on NVO in today's update: sell NVO puts at a strike price of $60 when NVO trades in the 48 to 50 range.

Would this not result in an immediate purchase of NVO at $60, a higher price than NVO is trading at? Is this a typo or is this really a strategy that I don't understand?


Thanks!

- Harn

[SOL]

Generally speaking, long-dated puts are not assigned immediately. If assignment does happen, the effective cost becomes 60, minus what remains after purchasing the call, so you end up with leveraged upside exposure while paying only slightly more for the stock. So far, Only about one-third of the capital is deployed, leaving the rest available to add shares later at lower levels if the opportunity shows up.

For those who prefer simplicity, the same idea is also presented as a straight equity position in the B&B portfolio.

[Harn]

Thanks, I think I get it now.