The interview with is all-time.
Nick's story about pre-paying for beef is💪.
Why am I not surprised that Nick found an overpriced option 60 day option, meaning rapid theta, and pasted it?
(via --> commoncog.com/blog/cash-flow)
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Just to spell it out in options...
Nick was paying $34/lb. This embedded a option premium for matching his demand to time.
Now he pre-books Alinea custs, crushing the volatility of his revenue.
He now "sells" the option net of carry costs (interest and freezer storage).
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