Puts sold (on margin) HIMS $25.50 5/15 Price: $1.85 ($185 in premium recvd per contract) Provides 17% discount to current share price. Note - earnings are 5/11 so fall within this range. If we see a pre-earnings rebound prior I may close for partial profit. Earnings adds a binary event to this option so higher risk. Recommend follow only if happy to own or were wishing you had previously added to HIMS before recent run, I am happy to buy HIMS at a 17% discount to today. see my previous chamber post about my view on HIMS as a medium/longer term hold. Option is at ~.30 delta @everyone

I am very open about being an individual in recovery from addiction. I just shared this in the lounge giving someone advice but feel it’s important to say it loudly as there are many newer investors here and I have seen several messages about feeling behind in life. If you are here, you are already doing the next right thing. 5 years ago I wrote this on Reddit in a /fire subreddit. “Drug addict here. Sober 5.5 years. About to turn 34 this year. I was spending 600-700$ a day on opioid painkillers. When I walked into detox at 27 I had $32,000 in credit card debt and lines of credit. Car had a repo note. Had pretty much tapped out my 401k. My dad died in a car accident 6 years ago and I used his life insurance to pay for treatment. My brother bought a condo. I was working in a nice paying gig in finance. I hated it. Econ/finance major. I quit. I took an 11$/hr job working in recovery field. Took penalty on 401k remaining balance to pay for sober housing while I got on my feet. This past month I broke 10k net worth, settled my bad debts. I bought my first car this year since recovery, every other car has been a hand me down that I rode until the wheels fell off. I currently get the family discount living in a basement apartment in my family home and now im saving to buy it. I’m an executive director of a recovery non profit making what I made 6 years ago in finance. I just married my wife during the pandemic. 22 person wedding. Saved the money. Our honeymoon was a Rocky Mountain camper van road trip. And now I’m saving 40% of my income. I could sit on regret, or I can continue to refuse to settle in life anymore. I did too much of that. Best time was 10 years ago. Second best time is now. Good luck. Never. Settle.” It is almost 5 years to the day since I wrote that. Today I am 38. Im 10.5 years in recovery. I have a solid 6 digit net worth. No debt. A 4 year old and a 1 year old. I bought that house I was saving for. And I am more financially stable than I have ever been in my life, even when I worked in investment banking. And I love my life. Never. Settle. It’s never too late. **years not days.** prob an unnecessary @everyone ping but I don’t care. If you’re here you’re not behind… you’re just getting started.

**$SNAP is the perfect example of a business that has grown a habit of diluting.** Snapchat went public in 2017 with roughly 1.24B shares outstanding. Today that number sits at around 1.69B. Now I get that a 38% increase over nearly a decade does not sound catastrophic, but there is more. Snapchat compensates employees primarily through RSUs, a restricted stock unit (which is basically a right to shares if X is accomplished in the future). When an RSU is granted it does not immediately hit the share count. Shares only get issued as they vest over a multiyear schedule, meaning the dilution is gradual and spread out. Every quarter a new wave of RSUs vest and fresh shares enter the market. The fully diluted share count, which includes all grants not yet vested, is always meaningfully higher than the basic share count and gives you a far more honest picture of where things are heading. What's funny is when Snapchat cut 10% of its workforce a couple years ago, the CEO told employees that the layoffs were partly to address their rate of elevated dilution from stock based compensation… that's how bad it is. I have shared a chart below on Snapchat's stock based compensation. If you exclude the $2.6B in stock they issued during their IPO in 2017, they have handed out $7.8B since! They dilute shareholders by $1B a year. For a company generating roughly $6B in revenue and still losing money (other than 1 quarter), that is an enormous ongoing transfer of value from shareholders to insiders. So many investors on X celebrated the company's ability to generate a profit last quarter… but at what cost? They were able to generate $50M of profit in that quarter… woohoo right? It came at the expense of $250M in stock based compensation. The improvements a business makes are nothing in stock returns if you are being diluted at a greater magnitude. Below are a few charts on Snapchat's dilution. One I want to talk to in particular is the one that shows two lines. One line being the amount of stock based compensation relative to revenue expressed as a percentage and a line on their revenue growth. What it shows is yes, the amount of stock based compensation came down… but it was when the business slowed down! Meaning all that previous growth resulted in nothing for existing shareholders! **What should you look for?** Always check the share count growth over 5 years. Look at stock based compensation as a percentage of revenue, this has to decrease as a sign that the dilution is slowing relative to growth. You need to ask yourself, what is the benefit of this dilution? Is something being achieved with it? Anyways, that's all! Dilution is a big pet peeve of mine so I figured it was the best to mention first in this series!

**A lesson on Dilution.** I thought it would be cool to write a series about aspects of businesses that I generally watch out for when performing a high level view. So if someone were to recommend a stock to me, this would be one of the first things I check before diving deeper. Today, that thing is dilution. Dilution is one of those concepts that sounds technical but is actually very simple once you understand it. And once you do understand it, you will start looking at certain companies very differently. So what is dilution? When you buy shares in a company, you own a percentage of that business. Dilution is what happens when a company issues new shares, which shrinks your ownership percentage without you doing anything. If I own 1,000 shares of a company with 10,000 total shares (10%)… and the company entices a new investor into the business by offering them 1,000 shares, that would mean that I now own 1,000 out of 11,000 shares (9%). **What causes dilution?** The most common causes are stock based compensation (paying employees and executives in shares instead of cash), secondary offerings where the company raises money by selling new shares to investors, and convertible notes or warrants that can be converted into shares down the line. I should say that not all dilution is bad. If a company raises capital to invest in genuine growth and the return on that capital exceeds the dilution cost, shareholders can still come out ahead. **When does it become a concern?** It becomes a serious concern when a company is consistently issuing shares, the share count keeps climbing year after year, and the business has little to show for it. By show for it, I mean expanding profits or revenues accelerating. Some companies get caught in the habit of issuing shares to compensate their staff and it ultimately just becomes a vehicle to enrich themselves and not the shareholders. This is what you want to avoid. **How can it be used to manipulate shareholders?** Companies can use adjusted metrics like Adjusted EBITDA or Non-GAAP earnings to make the business look far more profitable than it actually is. These metrics almost always exclude stock based compensation because it is a non-cash expense. Just because an expense is non-cash, it doesn't mean it's not a cost to the shareholder. We care about pure profits and free cash flows.

For those unaware. I use the margin aspect of my account when selling puts. This allows Margin Secured Puts. Decreases margin by ~20% of the underlying stock purchase value at exercise but no margin interest is accrued. This allows access to the paid premium immediately while not incurring interest. However it is important to note that changes in the option valuation may change margin requirements. Only do this if you have cash flow access to potentially cover/close and or cover at execution if you are happy to own. This is a way of selling puts without tying up full amount in cash security.

More headlines today. Cease fire. Not extending. Ready for escalation. Followed by an extension after close. Volatile intraday response from oil and the markets. I have been adamant and repetitive with my philosophy - for those that are active, headlines provide opportunity… but imo the conflict is not over until it is over and there is an extended period of ship traffic through the Strait. The rest is noise. Who knows what is coming up in the market. But if we have increased volatility: Continuing to add META opportunistically at values sub 600. Realistically great value in 620 region imo for long term quality holds. I recently added at 627, 594 and 561. Imo **META at those prices and below is one of best opportunities in the market.** Top Stocks I am watching: UBER sub 70s. (Good value in low 70s though) MSFT RDDT MRVL - see my above commentary in chamber. May enter a share and call play. Would like to on some weakness in price. Will alert if do. Potential CSP plays: HIMS mid-20s. I have been a HIMS holder since early 2024 at 12$ and added many times. Sold for large profit at last peak before drawdown (literal top tick at 64). Still maintain some shares and do have a few open sold puts for 2027/2028. Believe HIMS selloff was majorly overdone past few months with hard YoY comps and GLP1 concerns. Climaxed early this year with botched pill launch followed by immediate regulatory threats etc. majority resolved via novo partnership. Technically some sort of SEC scrutiny still pending per 10K disclosure. Even at max uncertainty, price was dislocated from fundamentals and oversold. Long runway with international growth. Normalizing for always temporary commercial GLP1 and the company is still growing and performing. Runway for peptides being laid by RFK and admin, HIMS best positioned with customer base, peptides roadmap, expanded compounding facility footprint, and acquired peptide facility last year. Believe there’s room to run. Q1 earnings were soft guide. Did not include Novo partnership. News suggests pills selling fast. We need to hear specifics of the deal/margin impact but either way even if loss leader for customer acquisition and cross sell still beneficial. Any upside news + peptide plan may lead to a next leg up. HIMS volatility has historically provided great premiums on selling puts. My position is more than free utilizing this strategy. I did not add at lowest prices due to uncertainty and prioritizing recent cash flow to purchases like META but will use any significant dip to likely sell some puts for big premiums and/or discounted entry. UBER: Considering selling puts in Uber as well on and downside as I’d be happy to own more and premiums will provide discount below my targeted purchase price.

Quick heads up because I don’t think enough of you are using this. The <#1483037006601916456> channel pushes insider buys/sells, unusual volume spikes, and major price movements in real time. Members who actually use it have caught some serious moves. It’s one of the fastest data feeds in here Still do your own research. But it’s a very good starting point. @everyone

Trimmed $DAVE at $280 since it reached my bear case PT. I still expect the stock to sell off a bit from here given its run 60% in 2 weeks. I know I suggested it not to buy in at the time of my thesis publishing and I stand by that, we should never chase. But I thought I would update you on what I’ve been doing with my own position. (None of this is financial advice)