PCT

Londonskaya1828

I have held CRWD ever since they crashed all those computer systems. I have sold 30 PCT and plan to keep the rest. I am not adding to my position as I know nothing about this company, I merely took advantage of a once in a lifetime opportunity. However, they do have strong sales growth and low debt.

WinstonSalemSmith

There are no stupid questions, only stupid answers. I sold a lot of equities from Oct-mid April and bought a gold fund GLD, a short duration US bond fund (SGOV 5 PCT interest), an intl bond fund (BNDX 4 PCT interest). I am buying United Healthcare UNH right now, I bought back some AMZN @ 175 and some European equity EUAD fund and EADS which makes Airbus planes. Ticker is probably EADSY. I started selling because of Buffet, so I sold 50 PCT of my AMZN at 210. It then rose to 240 I think. I am also thinking about buying a rare book, ie a collectible, but that would be a new direction.

WinstonSalemSmith

Yes, agree. I just think it is important to clarify that selling has a cost and that holding cash (as Buffet does) means holding treasuries and making money on interest payments. There is a mistaken belief among buy and hold investors that holding cash means not buying something like SGOV. Ie, they imply you hold cash and lose money via inflationary effects. SGOV pays 4.9 PCT annually.

WinstonSalemSmith

Agree. But the main thing is the capital gains tax, let's say if you sold 100K and 70K was profit. Also, assume you put the 100K into SGOV or BNDX and achieved a 4-5 PCT return.

WinstonSalemSmith

I am not buying, individual shares are always risky. I would buy the EUAD ETF instead as it gives you broad exposure. I also believe that Rheinmetall will keep going higher, but I am advising a relative to sell 25 PCT of their shares when the ADR hits 400.

noplanman_srslynone

I walked from Mexico to Canada on the PCT in 2005. You get to choose beautiful morning poop spots every day. I made it 1300 miles in 2013 but my achilles got sprained and I had to walk 20 miles out on it. Toughened me up for the bol / bear debate.

lostbanbet

Reread my comment dude. PCT is picomancer. The class added in Dawntrail. It does more DPS than BLM and has uptime when bosses are untargetable

lostbanbet

Still main BLM? They massacred your class with PCT this expat

-medicalthrowaway-

Jesus fucking christ I feel like shit Decided to get off the gear, just started PCT a couple days ago, dick isn’t working Why the fuck am I doing this to myself I don’t want kids anyway I’ll give it a week. If I don’t feel better I’m jumping back on to blast and cruise

noplanman_srslynone

Sorry I forgot about the tariffs. When you hike the PCT and get dirt in your food we call it trail spice. Maybe try trail spice cube?

Nemarus_Investor

Yes. Generally you start with your own country, then file a PCT application, then from there you pick countries.

YLedbetter10

I’ve been watching it all week. I like how quickly it moves up when there’s volume. Reminds me of $PCT’s price action

FistEnergy

US Q4 CORE PCE REVISED UP TO +2.7% PACE FROM +2.5% US PENDING HOME SALES INDEX -4.6% TO 70.6 IN JAN - NAR US JAN PENDING HOME SALES -5.2% FROM JAN 2024 - NAR U.S. STOCKS EXTEND FALL, NASDAQ DOWN 1.00 PCT I timed the market by moving $50000 from VOO to SGOV last month and it looks like the right decision, despite all the downvotes. Macro conditions are not unforseeable. You can take advantage and profit.

swampassOG

#PCT

trent_upscale

PCT is a company

SenBaka

I need PCT guy to buy $4m more

Upper_Maintenance_41

PCT’s Balance Sheet Is In Trouble PCT needs to start ramping sales in 2025 and hit profitability soon after if it wants to avoid issuing shares and falling into a debt spiral. It also needs funds to pay for the construction of the Augusta plant. PCT has an accumulated deficit of $568.7 million all-time and a deficit of $224.5 million in the first 3 quarters of 2024. The company can’t spend $45.9 million on operations + interest much longer. The company used $41.8 million in unrestricted cash (including $9.2 million for the Augusta plant and the Denver sorting facility) and $2.6 million in restricted cash in Q3. Despite this high cash usage, the $18 million in bond sales and $90 million in money raised in September allowed PCT to end the quarter with $93.7 million in cash ($10 million of which is restricted). After the quarter ended, the firm put $35.9 million into an escrow account for building the Augusta plant. The company needs to spend another $11 million on pre-construction for the Augusta plant in the next few quarters which will force it to raise more money. Neither debt nor equity are good options because the company has $14.6 million in quarterly interest payments and dilution would hurt the stock. PCT has $117.6 million in revenue bonds it can sell for 80 cents on the dollar like a previous sale. That would give the firm $94.1 million in cash. If you add the $93.7 million it has in cash to the $94.1 million from revenue bond sales and subtract the $35.9 million Augusta escrow payment, the firm has $151.9 million to spend. At the current burn rate, that’s only about 3-4 quarters of runway. That doesn’t include Q4, meaning the firm could be in a bind as early as mid-2025. The $200 million line of credit with Sylebra should only be used in an emergency because its 17.5% interest rate could cause a debt spiral very quickly. PCT Still Had No Sales Despite Inventory Build; Will Sales Start In Q4? We must project near-term sales given the high bankruptcy risk PCT faces in 2H 2025. I will include all pertinent information in a difficult situation to forecast. Not even PCT’s management is willing to give EBITDA guidance for 2025. Firstly, the analyst revenue consensus is $6.55 million in Q4 and $93.62 million in 2025. The firm isn’t expected to be profitable until 2028, but having sales should lower the burn rate. If the stock rises on the firm achieving its first commercial sales, it could be the perfect time to issue shares to strengthen the balance sheet. Management stated it needs to get to 40-50% utilization to breakeven at Ironton. Remember, even though Ironton is at 13% utilization, it hasn’t made any sales. That calculation only works if pellets are sold. Furthermore, management stated it needs to get to 80-90% utilization at Ironton for the company to breakeven, not including capex. This means the company will still be losing money if it is at 85% utilization while building out Augusta. That would still be a better situation than where we are today. I’m confused when management expects PCT to start commercial sales. On the Q3 call in November management said it would have material sales in Q4 and ramp into 2025. However, in its December 2024 slide deck which I highlighted below, it says to expect reportable sales in Q1 2025. I’m leaning towards expecting no sales in Q4, but there might be a nominal amount from its 2 tiny fiber customers. The cash burn will be in focus in the Q4 report especially if the firm doesn’t sell any revenue bonds between now and the report. I expect a stock decline at some point this year when investors focus on the balance sheet. PureCycle Technologies December Deck Highlighted By Author Two Tea Leaves I like reading the details of SEC filings to see if I can find any tea leaves. I found 2 interesting points. Firstly, P&G pushed back its license deal’s deadline with PCT from year-end 2024 to Q1 2025. The start of sales provision states PCT must reach 70% of nameplate production by the end of Q1 or PCT will be subject to claw back provisions. This is confusing because it’s highly unlikely PCT will get to 70% of nameplate production by the end of Q1. Why not just extend it until the end of 2025? There is a low probability P&G actually acts upon its claw back provisions. The creation of PCT has worked out well for P&G because the CPG conglomerate didn’t have to pay for the $568.7 million in accumulated deficits and it is being given the option to use PCT’s recycled pellets (unfortunately they are compounded). Secondly, the former CFO Michael Dee paid $620k to move the deadline for his restricted shares to vest if Leidos determines Ironton is operational from year-end 2024 to year-end 2026. On the one hand, it’s good he has the confidence that Ironton will eventually be operational. On the other hand, it would have been more positive if he moved it to year-end 2025. It would terrible for shareholders if it takes another 2 years to get Ironton operational. Within the filing, it says "the Ironton, Ohio plant has not been certified as operational by Leidos." Considering that a 3rd party independent monitoring and verification company said Ironton wasn’t operational as of year-end 2024, I think it’s likely PCT had minimal sales at best in Q4. Maybe PCT sold its 2.5 million pounds of compounded PP inventory and some of the pellets it produced in Q4. However, I’m certain Ironton wasn’t operating at scale with all of its pellet production sold. In fact, that might not occur for at least another few quarters, making bankruptcy risk high, in my opinion

Upper_Maintenance_41

Problems With Producing Virgin-Like Recycled Polypropylene On Spec I don’t think PCT’s partnerships with industrial companies in the automotive, upholstery, and carpet industries are particularly valuable because these businesses can’t advertise their use of recycled plastics to consumers. The use of virgin PP combined with recycled PP (compounded pellets) shows PCT is struggling to produce virgin-like recycled PP on spec. Selling recycled PP to small firms like Beverley Knits to make rugs produced at low scale won’t move the needle. P&G using PureFive recycled PP without any virgin plastic mixed in for its CPG products is the holy grail. Unfortunately, P&G is only considering potentially working with PCT’s compounded material. Just getting P&G to review PCT’s product doesn’t equate to an order. The fact that PCT has 2.5 million pounds of compounded inventory without selling anything speaks volumes about the spec issues. Originally, PCT was supposed to produce virgin-like recycled PP for all end markets without customization. I am concerned that PCT is testing various recipes and making adjustments to produce a variety of compounds with unique percentages of virgin PP for different end markets. The more customized a product requires, the harder it is to scale. Management called the fiber compound application “operationally tricky.” They also said, “there are numerous adjustments that need to be made to fine-tune the process, both in terms of compounding recipe as well as the customer fiber operational variables.” I have been harping on PCT’s inability to produce ultra-pure recycled resin on spec for a few years now. I was surprised to see the company finally support my thesis with one of their slides. As you can see from the slide below, 100% PureCycle UPR PP has a less than 20% contrast ratio which measures opacity. This isn’t as good as virgin PP resin which is less than 10%. Furthermore, it has a below 20 yellowness index value which is above virgin PP’s 0 value. PCT needs to use a clarifier to increase opacity and lower yellowing which will add costs and could cause health risks. Clarifiers are nucleating agents that clear plastic and increase molding ability. PureCycle Technologies Q3 Deck As I mentioned in the introduction, SK geo centric’s JV with PCT was cancelled in October 2024. Specifically, the two companies had plans to construct a plant in Ulsan, South Korea that would produce 120 million pounds of recycled PP. I believe if Ironton was operating at scale, SK would have pushed harder to implement the technology in South Korea. The press release says, “The two sides are open to working together to find an alternative location in South Korea.” This confuses me because the location has little to do with executing the complex technology in a cost-effective manner at scale. PCT Only Has Agreements To Sell To Tiny Partners The small partners PCT has named won’t move the needle. We can look at the size of the firms PCT mentioned in its slide deck. According to LinkedIn, Beverly Knits has 201-500 employees and MiniFIBERS has 11-50 employees. These are likely the 2 companies PCT has offtake agreements with to accept its compounded PP within the fiber end market. Carpet/rugs don’t need to be clear; they can be made with low-quality cheap recycled PP. These products don’t need to be food grade. Few end users would buy a carpet or rug because it is made with some recycled material, meaning PCT’s compound can’t be sold at a premium. PureCycle Technologies Q3 Deck Annotated By Broken Business Models On the other hand, P&G has 108k employees and owns the CPG brands PCT would love to supply with recycled pellets. Unfortunately, even though PCT is using technology created by P&G, it is far from nabbing this giant potential customer at scale. PCT only completed the first step which is to provide P&G with compounded material that the CPG conglomerate can test. PCT estimates it can provide compounded PP to P&G for production in Q2 or Q3 2025, but that’s far from certain. There is no requirement for P&G to go beyond the test phase. Now that PCT has some compounded product in inventory which it is giving customers for testing and trials, it is clear that the offtake agreements mentioned in the SPAC presentation in 2020 weren’t set in stone. This lack of initial demand is partially because the virgin-like PureFive can’t be produced at scale on spec. However, it’s disconcerting some of the original customers referred to in the slide below can’t take some compounded product which PCT believes can sell at high volume give its cheaper price than PureFive. As of now, the offtake agreements in 2020 to sell the first 2 years of production don’t seem to be leading to sales in 2025.

Upper_Maintenance_41

In the next section, I will discuss the increased costs of PCT’s new Denver, Pennsylvania plant which sorts feedstock. However, I’d just like to mention here it’s already at 80%-85% of nameplate capacity within a few months of operation. If the feedstock evaluation unit properly translated into scaled production, Ironton would have reached nameplate production in a similar timeframe. Instead, we are 1 year out from the plant’s launch hoping for a high teens percent of nameplate capacity. The Denver plant’s nameplate capacity is 22k pounds per hour which is 193 million pounds per year if it’s run 24/7 and 96 million pounds per year if it’s run 50% of the time. If PCT’s future PP recycling plant in Augusta, Georgia becomes operational, the Denver sorting plant can serve it along with the plant in Ironton. As of November 2024, management projected the Augusta plant to come on-line in 2.5 years. Costs Are Increasing Via New Denver Plant Even though PCT was founded 10 years ago, up until last year the company hadn’t realized it couldn’t use regular feedstock to recycle PP at Ironton. Specifically, the firm assumed feedstock would be 95% to 98% PP. However, it can be as low as 65%. This created the need for another facility in Denver, Pennsylvania which sorts the PP before it’s sent to Ironton. The new Denver plant is 474 miles away from Ironton which creates additional shipping costs (via train). The Denver plant is 325k square feet. PCT has a 15-year lease with minimum payments of $52.3 million per year. The lease is subject to 3-3.5% annual escalators. This adds to more of the problematic cost overruns that I discussed in a previous article. Specifically, I showed the SPAC presentation slide which only included $31 million in yearly operating costs. Just this new Denver plant alone exceeds that optimistic assumption. In Q3 2024 alone, PCT had $31.3 million in operating costs and expenses. That’s virtually identical to the $31.6 million in the prior year due to a never-ending amount of workarounds management needed to do to increase scale. I believe going from 13% to 100% of nameplate capacity will require more workarounds which will further balloon expenses. Furthermore, the company had $14.6 million in interest expenses which brought it to $45.9 million in total costs in Q3 2024. The SPAC presentation had Ironton only earning $97 million in annual gross revenue. Its costs from Q3 alone eat half of that estimate. As I will detail later on, if the firm doesn’t start generating sales later this year, it has the potential to fall into a debt spiral. Dustin mentioned PCT having strong unit economics on the Q3 call, but gave no numbers to back this up. The Price Of Polypropylene Is Declining PCT’s end markets are facing challenges which is lowering pricing. Furthermore, the firm won’t get a price premium over virgin PP when selling recycled PP into industrial-type end markets because it can’t be marketed to consumers. The original selling point for PCT was that the company could sell virgin-like recycled post-consumer PP to CPG companies who would pay a premium to be able to display “recycled plastic” in their packaging. This label would increase consumer demand. The best product would be a fully recycled PP virgin-like food grade plastic such as a yogurt cup. Neither compounded recycled PP nor recycled PP sold for industrial usage hit that mark. Besides not being able to market the product, some industrial usage like in the production of rugs/floor mats don’t require the plastic to be colorless and transparent. Lower-quality recycled plastic won’t get a price premium over virgin PP. With that in mind, let’s look at the weak pricing environment for virgin PP. Weak virgin PP pricing pressures recycled PP pricing since they compete (PCT is trying to get a premium over virgin PP). In North America, PP pricing was strong from January to May 2024 with pellet pricing rising due to increased demand and less supply. The market took a turn lower in the 2nd half of the year due to weak demand and low feedstock pricing. According to Plastic News, prices fell 4 cents per pound in September, 6 cents in October, 3.5 cents in November, and finally an additional 2.5 cents in December. You can see in the chart below, pricing is near a 16-year low. Sometimes investors forget PCT is selling a commodity that is impacted by supply and demand.

Upper_Maintenance_41

PureCycle's pellet production at Ironton PureCycle Technologies Q3 Deck PCT likes to produce as much recycled PP as it can in short bursts (to discover limits), but those are never maintained for the entire quarter. Specifically, it produced 1 million pounds in a week; that would have been 13 million pounds in the quarter had it maintained such a rate. Similarly, it produced 200k pounds in a day which would equal 1.4 million pounds in a week. Finally, it peaked at 10k pounds in an hour which would be 240k pounds in a day. Peak production is a vanity metric because it can’t be maintained. Management mentioned on the Q3 call that in the prior 4 weeks, it produced $400,000 per week in sellable compounded product. That only equates to $20.8 million in yearly sales. Of course, those are hypothetical sales because PCT didn’t sell any of the compounded product (might not be on spec). Remember, compounded product is sold at lower margins because it’s mixed with virgin plastic. This isn’t the virgin-like fully recycled plastic that was promised originally.

Upper_Maintenance_41

The analysis was someone on SA which Reddit does not allow links to. I copied and pasted it here but I can DM you a link. Skip to content PureCycle Technologies Is Already In Cost Hell Jan. 20, 2025 4:07 PM ETPureCycle Technologies, Inc. (PCT) StockPG, PCTTU, PCTTW, PG:CA, PCT Alex Pitti 4.07K Followers (20min) Comments (18) About this article Ticker Analyst rating Strong Sell Price at publication $9.67 Last price $10.65 Change since publication 10.13% S&P 500 change since publication 1.89% Days since publication 30 Summary     PureCycle Technologies had $0 of commercial sales in Q3 2024 despite having significant inventory and processing record feedstock amounts.     PCT faces rising costs and has limited offtake agreements. It is struggling to meet its original SPAC deal promises.     The company’s Ironton plant operates at only 13% of nameplate capacity, with ongoing production issues and escalating costs.     PCT's balance sheet is in trouble. Its high cash burn gives it high bankruptcy risk if sales don't start soon. Happy woman placing plastic bottle into recycling bin. Dougal Waters Another Quarter Of $0 Sales Despite processing a record 3.5 million pounds of feedstock and having 2.5 million pounds of compounded recycled polypropylene (PP) in inventory, PureCycle Technologies (NASDAQ:PCT) had $0 of commercial sales in Q3 2024. I was correct in my September article when I said the firm would miss estimates for $3.54 million in Q3 sales. In the past few quarters, PCT has been mired with production problems causing it to pivot to compounded PP (recycled PP mixed with virgin PP) because fully recycled PP (PureFive) hasn’t met spec for customers yet. It’s hard to follow a business with no sales and changing prospects because there’s not much to latch onto. Everything is a hypothetical projection until it actually happens. That’s why you have my articles to analyze the changes. One example of a change is the recent decision by PCT and SK geo centric to cancel their joint venture (JV) to produce a recycling PP plant in South Korea. In this article, I will review all the pertinent details in the everchanging PCT story. The 3 most important aspects I will focus on are rising costs, limited offtake agreements, and the weakening balance sheet. PCT is struggling to produce what was originally promised in the SPAC deal. The original goal was to produce recycled PP that’s just as good as virgin PP using post-consumer waste at scale sold to major CPG (consumer packaged goods) firms such as P&G (PG) at a profit. Still Struggling To Get Near Nameplate At Ironton PCT’s flagship first scaled plant for recycling PP is in Ironton, Ohio. It has nameplate capacity of 107 million pounds per year of recycled pellets. As you can see below, pellet production has been mediocre so far. It reached 3.5 million pounds in Q3 which is only about 13% of nameplate quarterly capacity. Every time PCT tries to increase production, another issue occurs that the company needs to spend months resolving. This isn’t just my opinion. CEO Dustin Olson made this point on the Q3 call. He said,     “every time that we push into a new boundary of the plant operations, we will find new constraints that we have to work through to get there.”

burner-1234

Pls link if you could Sounds like that analysis is mistaking compounding for “not working”. Everything single customer will compound their plastic in order to get the desired color, transparency, physical properties etc. PCT is choosing to get involved here as they will capture a portion of that value chain as well as more successfully imbed themselves in their customers. Last part is just false, you will see they announced first sale in January. They have dozens of offtake agreements that they are currently focusing on turning into POs. The mega cap customers take time but they are getting there.

SenBaka

Im just following the best YOLOs from our karma overlords I got VST $220c and PCT $13.5c both exp 2/28. I’m so confident this shit moons I alr feel the regret of not having bought more

Neel_Crashkari

PCT

Glass-Star6635

PCT

Neel_Crashkari

PCT PCT PCT on the bad juju ligma bus!

T0th3M00NW3G0

All I have to say is $PCT.

Neel_Crashkari

PCT is curing cancer rn

broke_ugly_dumb

warren buffet has a stake in PCT?

PaperHands_BKbd

I'm asking honest questions here that investors should ask themselves. I do it to think through the value, but also to raise those questions for others, and potentially get answers. I have respect for Druckenmiller's record, for OP and putting their money where their mouth is, and for the idea of sharing investment ideas to make us all better investors. I use all these posts as a filter and hope others can get ideas too. Druck's in for 0.5% of his portfolio. It's his 48th largest holding as of the latest info I can check. That's exploratory. OP seems to be in for more, so worth talking through. If my delivery is blunt and I've offended, I'd note that's the format here. I've gone deep on PCT a couple times, and like the idea and the execution so far, but can't get past the point that I asked about. Where and when do they get their revenue? It's the core of a business and what takes a great idea into a great company, or leaves it as a great idea. In this case the idea is licensed exclusively, but worth quite a bit. So there's a time limit they have to work with. That's the reality of betting on PCT. OP provided some additional context, as did others including JimmyJames' comment and his previous posts, I appreciate it all. I'll take another look. You mention having to enter at 200% higher if people wait. Depending on the timeframes, that could be all right here, and eliminates a lot of the downside in my view. That's my point. This whole "you either agree with me or your an idiot" mindset doesn't help anyone.

Redditaccount2322

I did a brief amount of DD. Enough to realize this isn’t even an unprofitable tech company, it’s a non-revenue generating materials company. Non-competitive? In what sense? Their competitive advantage is that they use a patented recycling technology but are they even cost competitive compared to conventional PP producers? We’re also entering a new administration that prioritizes domestic oil production which would lower the input costs for traditional plastics manufacturing. The same administration also cares a lot less about ESG. Is PCT even cost competitive to traditional manufacturing? Literally this company is impossible to analyze because their profitability is a black box. What are their margins? What is their revenue at capacity? Likelihood to reach capacity? Etc. Good luck with your play - not for me but definitely high risk, high reward.

Londonskaya1828

I bought Jan 24, sold 20 PCT for 105 or 110, will hold the rest. A relative bought last January as well, I convinced them to sell 30 PCT this week b4 the election. The ADR will hit 180 in the USA before the election. This is the golden ticket, but I don't mind taking some money off the table. I also like BASF BAYR and BNTX in Germany. I don't really like BNTX to be honest, but if you are looking for a moonshot, that's it.

trent_upscale

PCT seems like free money. What am I missing?

AKdemy

If delta is the same, so will be gamma. You can look at the following screenshot: [https://ibb.co/8gc1mwH](https://ibb.co/8gc1mwH) As you can see, the first two lines have a different spot, different strike, different IV and different time to expiry (TTE). Yet, delta is the same, as is Gamma. To be fair, it depends somewhat on the way Gamma is displayed / computed but there is always a unique and identical relationship between the two that only depends on the price of the underlying. **Detailed Explanation (copy pasted from a comment I made elsewhere)** If you have a certain Delta, the Percent Gamma will be the same. Sometimes the math may be daunting, but the closed form BSM solutions are simple to code and it's fundamentally the same for American options. The link [https://quant.stackexchange.com/a/78030/54838](https://quant.stackexchange.com/a/78030/54838) shows that the code matches Bloomberg to the decimal. The choice of numeraire is crucial here. The actual price of an option is in some currency, say USD because currency is a commonly accepted medium of exchange, and unit of account, whereas stocks are not. In fact, that is the reason stocks are quoted in currency in the first place (as opposed to say another stock or [noodles, tuna or cigarettes](https://www.theguardian.com/society/shortcuts/2016/aug/23/what-do-british-prisoners-use-as-currency)). Therefore, the natural choice with (stock) options is to express them in terms of currency as opposed to (fractions of) shares of stock. **All the major Greeks, except Delta, depend on the actual value of the underlying because they are expressed in CCY and not in (one) stock.** That is why adding simply BSM (Unit) Gamma to Delta does not get you close to the Delta you have after a 1% (or small) change in spot. The code below creates the table in the first screenshot. The formulas can be found on [Wikipedia](https://en.wikipedia.org/wiki/en:Greeks_(finance)?variant=zh-tw). `using Distributions, DataFrames, PrettyTables N(x) = cdf(Normal(0,1),x) n(x) = pdf(Normal(0,1),x)` `""" Calculate Black-Scholes european call option price` [`https://en.wikipedia.org/wiki/Greeks_(finance)#Formulas_for_European_option_Greeks`](https://en.wikipedia.org/wiki/Greeks_(finance)#Formulas_for_European_option_Greeks) `"""` `digits = 4 function BSM(S,K,t,rf,d,σ) d1 = ( log(S/K) + (rf - d + 1/2σ2)*t ) / (σsqrt(t)) d2 = d1 - σsqrt(t) c = exp(-dt)SN(d1) - exp(-rft)KN(d2) delta_c = exp(-dt)N(d1) gamma_c = exp(-dt)n(d1) / (Sσ sqrt(t)) return DataFrame("Spot" => S , "Strike" => K , "IV" => σ , "TTE in Days" => t365 , "Premium" => round(c, digits = digits) , "Price in Pct"=> round(c/S, digits = digits) , "Delta" => round(delta_c, digits = digits) , "Gamma Pct" => round(gamma_cs/100, digits = digits) , "Unit Gamma" => round(gamma_c, digits = digits)) end` `s,k,t,rf,d,σ, df = 138, 138, 90, 0, 0, 0.22, BSM.(s,k,t/365,rf,d,σ) df` The output for various different inputs looks like this: [https://ibb.co/cg2n8hr](https://ibb.co/cg2n8hr) The Gamma from BSM is frequently called unit gamma as it refers to a change in delta to a one unit change in the underlying. However, unit changes are a difficult thing (in finance) - something clearly visible when looking at the [standard deviation of prices](https://quant.stackexchange.com/a/65943/54838) (as opposed to returns). As you can see in the results, Gamma Pct can simply be added to Delta (as it is in the same Numeraire) and works for any 1 Pct change. Unit Delta on the other hand is smaller the larger the price of the underlying. The Blue line shows a 1 Pct change in an underlying which is worth 50k. In tems of Unit Gamma, that would still mean a change in the underlying ba $1, which is miniscule for 50K but gigantic for an underlying thats worth $1. That's why Gamma is usually Percent Gamma (change in Delta to a 1% change in price) by adjusting for the spot rate. [https://quant.stackexchange.com/a/65827/54838](https://quant.stackexchange.com/a/65827/54838) is showing that by default, Bloomberg displays PCT Gamma on their pricing engines unless you swap manually to display unit gamma (if you have BBG, click on Settings (in OVME) - User Settings - Pricing - Greeks section - Gamma). Long story short, Gamma will be identical for any given Delta for a 1 percent change in the underlying, irrespective of IV, TTE etc.

imstaringataplant

I feel like it might be about time for me to get back in on PCT...

6JDanish

$PCT. Pre-revenue company that looks like it's going to make it. Commercial sales expected in the next Q. Short interest is over 30% of float. If sales trigger short covering, you'll get your double.

WillSwimWithToasters

No reason to buy this garbage. If you’re looking for something shorted and actually good, look at PCT.

randomhardo

im getting withdrawals, please open the casino. i wanna buy some CABA and PCT

RevolutionaryPhoto24

I like PCT on a down day and low volatility premium vs historical on the chain, far out. (Get better movement on a pop in some ways further out and greater flexibility/safety.) If nothing else bc it will rally with everything else if they do. But also bc I think it a solid risk reward play.

dingobro1

$PCT

babagandu24

PCT. It’s pre-revenue but looking to change this in the next 2 quarters. Chemical recycling of polypropylene (hard plastic). Has had lots of issues and it went public (via spac - ha, I know) a few years too quick. Licensed in the tech from P&G. Short thesis has shifted from “they can’t run the plant to produce on spec” to “they’ll have no customers due to unattractive economics.” Imo, the business hit an inflection late summer 2024 after sorting out several issues. R/R is pretty good from here and it’s a significant part of my PA. And I’ll leave you with this: if this indeed scales, they have a monopoly in an area of significant unmet need - this is real ESG. Every long only/pension/endowment/etc would get exposure to this…

Low-Independence1160

PCT or AVGO will probably pay well as 2-3 year investments.

AFGB

This guy is big on on $PCT Twitter [https://x.com/Mike\_Taylor1972/status/1861833617225228795](https://x.com/Mike_Taylor1972/status/1861833617225228795)

AKdemy

I largely disagree with the given answers so far. You can look at the following screenshot to see why: https://ibb.co/DD74NkC As you can see, the first two lines have a different spot, different strike, different IV and different time to expiry (TTE), Yet, delta is the same, as is Gamma. It depends somewhat on the way gamma is displayed / computed but there is always a unique and identical relationship between the two. **Detailed Explanation:** If you have a certain Delta, the Percent Gamma will be the same. The other answers provide ressources to Greeks and claim things like - Gamma changes based on things like time to expiry and implied vol - Delta varies by stock price, strike price, IV and TTE However, what the two statements clearly show is that - Not just Gamma, but also Delta both change based on the same things and therefore neither explanation suffices to show it's constant or not. Sometimes the math may be daunting, but the closed form BSM solutions are simple to code. The link https://quant.stackexchange.com/a/78030/54838 shows that the code matches Bloomberg to the decimal. The choice of numeraire is crucial here. The actual price of an option is in some currency, say USD because currency is a commonly accepted medium of exchange, and unit of account, whereas stocks are not. In fact, that is the reason stocks are quoted in currency in the first place (as opposed to say another stock or [noodles, tuna or cigarettes](https://www.theguardian.com/society/shortcuts/2016/aug/23/what-do-british-prisoners-use-as-currency)). Therefore, the natural choice with (stock) options is to express them in terms of currency as opposed to (fractions of) shares of stock. **All the major Greeks, except Delta, depend on the actual value of the underlying because they are expressed in CCY and not in (one) stock.** That is why adding simply BSM (Unit) Gamma to Delta does not get you close to the Delta you have after a 1% (or small) change in spot. The code below creates the table in the first screenshot. The formulas can be found on [Wikipedia](https://en.wikipedia.org/wiki/en:Greeks_(finance)?variant=zh-tw). using Distributions, DataFrames, PrettyTables N(x) = cdf(Normal(0,1),x) n(x) = pdf(Normal(0,1),x) """ Calculate Black-Scholes european call option price https://en.wikipedia.org/wiki/Greeks_(finance)#Formulas_for_European_option_Greeks """ digits = 4 function BSM(S,K,t,rf,d,σ) d1 = ( log(S/K) + (rf - d + 1/2*σ^2)*t ) / (σ*sqrt(t)) d2 = d1 - σ*sqrt(t) c = exp(-d*t)S*N(d1) - exp(-rf*t)*K*N(d2) delta_c = exp(-d*t)*N(d1) gamma_c = exp(-d*t)*n(d1) / (S*σ *sqrt(t)) return DataFrame("Spot" => S , "Strike" => K , "IV" => σ , "TTE in Days" => t*365 , "Premium" => round(c, digits = digits) , "Price in Pct"=> round(c/S, digits = digits) , "Delta" => round(delta_c, digits = digits) , "Gamma Pct" => round(gamma_c*s/100, digits = digits) , "Unit Gamma" => round(gamma_c, digits = digits)) end s,k,t,rf,d,σ, df = 138, 138, 90, 0, 0, 0.22, BSM.(s,k,t/365,rf,d,σ) df The output for various different inputs looks like this: https://ibb.co/cg2n8hr The Gamma from BSM is frequently called unit gamma as it refers to a change in delta to a one unit change in the underlying. However, unit changes are a difficult thing (in finance) - something clearly visible when looking at the [standard deviation of prices](https://quant.stackexchange.com/a/65943/54838 ) (as opposed to returns). As you can see in the results, Gamma Pct can simply be added to Delta (as it is in the same Numeraire) and works for any 1 Pct change. Unit Delta on the other hand is smaller the larger the price of the underlying. The Blue line shows a 1 Pct change in an underlying which is worth 50k. In tems of Unit Gamma, that would still mean a change in the underlying ba $1, which is miniscule for 50K but gigantic for an underlying thats worth $1. That's why Gamma is usually Percent Gamma (change in Delta to a 1% change in price) by adjusting for the spot rate. https://quant.stackexchange.com/a/65827/54838 is showing that by default, Bloomberg displays PCT Gamma on their pricing engines unless you swap manually to display unit gamma (if you have BBG, click on Settings (in OVME) - User Settings - Pricing - Greeks section - Gamma). Long story short, Gamma will be identical for any given Delta for a 1 percent change in the underlying, irrespective of IV, TTE etc.

imstaringataplant

We still ignoring PCT?

DeliPolat

And where do they get their waste material from? Is it from households/cities or industrial clients? If households, how is household recyclable trash sorted for its different polymers? Is PCT's recycled PP still cheaper than virgin PP, I.E., of any interest to industrial players?

randomhardo

yall sleeping on PCT

spacecadet501st

Earlier today I my scammer picked up unusual option activity on the 12/20 14c and then we get a DD report. Interesting timing - not saying these events are in fact correlated. Regardless I am bullish on PCT. Their previous successful PR caught shorts off guard - they are sitting at a notable 27% SI per yahoo finance. As far as scalability, I can see mass adoption with cities looking to go green. Currently plastic recycling programs in most cities are subpar, and efficient in name only. A long term adaptation into major urban areas would be something similar to $WM. A downside however is WM contracts with the city are probably long standing and written for exclusive rights to trash and recycling management. Perhaps maybe some sort of partnership….

AFGB

Whenever I search for $PCT on this sub, it's always your comments. Looking today. You should make a post and pump it up

imstaringataplant

PCT anyone? Seems like their shit is getting sorted out.

imstaringataplant

**PCT you gards**

imstaringataplant

No one has PCT other than this gard?

imstaringataplant

Anyone else starting to feel sexy about PCT?

imstaringataplant

Been doing well this year but got some moonshots with shares on CAPR, URGN, PCT, and RYCEY I would really like to see pay off

imstaringataplant

did the same. got some moonshots on CAPR, URGN, PCT, and RYCEY

imstaringataplant

PCT showing a little life

zerogravV

$PCT will fly

MuteMouse

The 330k was what PCT of your portfolio? You hold to what loss? Or we're u just willing to lose the whole trade?

RevolutionaryPhoto24

January PCT calls…(volatility looks undervalued.)

imstaringataplant

Kinda in that PCT vein?

imstaringataplant

Anyone feeling sexy about PCT moving forward? Feels like we could get a boner with that one if things continue to go well.

Strong-Ad-5564

Yup. Riding the waves of PCT, RVSN, DXYZ, RENT and others…right place right time. PCT is still a buy.

imstaringataplant

Bought the PCT and UUUU dips

imstaringataplant

Took profits from RKLB and rolled it into LUNR and more ASTS Took profits from OKLO and rolled it into NNE, PCT, RDDT, and CRWD

BoringUser1234

PCT

Adventurous_Bag_3748

PCT?

imstaringataplant

Imma have to grab some PCT shares now that it's coming back down a bit

imstaringataplant

Thoughts on PCT?

fizzyknickers69

PCT just exploded

gtbeam3r

ASTS is not a meme stock. If you're paying attention, you'll realize it is very underpriced. PCT, OKTO and ASPI are all very interesting.

YLedbetter10

Definitely suggest taking some profits on open. I didn’t with PCT last week and MMs are gonna MM to keep it under 3.5 by end of day

ComfyRug

Sorry, and here is PCT: PureCycle Technologies, Inc. (PCT) has shown significant upward momentum recently, with the current price at $14.22, well above its 30-day SMA of $10.21, indicating strong bullish sentiment. The RSI values are in overbought territory, suggesting potential for a pullback, but the MACD histogram remains positive, supporting continued upward movement. Given the broader market's cautious optimism and PCT's recent volume spikes, a long position could be favorable. Enter around $14.20, targeting $15.00 as the first price target and $15.50 as the second, with a stop loss at $13.80 to manage downside risk. Confidence in reaching the first target is high due to strong technical indicators, while the second target carries moderate confidence given potential resistance and market volatility. Keep an eye on any news developments that could impact sentiment, particularly in the technology and sustainability sectors.

Dear-Fuel-2706

$PCT? Also, your model seems extremely conservative / short term vision. What is your response to that?

T0th3M00NW3G0

PCT. Thank me later

Sleepy_jojo_

Time for you apes to look into $PCT

paintedfaceless

The FDA Letter of No Objection on its product quality was a huge deal for PCT being equivalent to virgin polypropylene and so is their production energy efficiency being near 25% of conventional methods. Long term view here - my only concerns would be the market response to the COGM premium placed on produced plastics relative to the incumbents and management of its solvents and volatile byproducts in the neighboring areas of the processing facilities.

hourlypirate

[The iv is only 53%](https://marketchameleon.com/Overview/PCT/IV/), has potential for a squeeze as well. I'm in on some May/July calls.

DrSeuss1020

PCT, RKLB. QS, IONQ. These are my shitcos. There are other shitcos but these are mine. ASTS has had a nice run since I started and it is still an EASY 10x over the next couple of years as long as production and the tech continues. The others also believe have big potential. JOBY I like just for a long swing, regards are gonna eat up the flying car shit at some point

SkanderbegArmy

asstits and PCT

ProblemOk4641

$PCT

AxemanFromMA

PCT it says it on there…

Fresh_Cut9548

PCT to the moon pls

BrannyMuffins

PCT 🚀

burner-1234

$PCT is my favorite stock!

burner-1234

That’s cool, I like $PCT!

Jonesbro

If you keep saying $PCT then algorithms pick it up and buy

Jonesbro

Fuck it, I'm in $PCT

moon_mission

$PCT squeeze inbound 44M shares short, going to hit 25

moon_mission

$PCT come to the party

capvistaview

Calls on $PCT Nobody has covered yet. 44 mm shares short out of an "adjusted" float of call it 25 mm shares. From JPM as of 10/24/24 close: PCT US - Approx. 1.1MM available. Estimated SI is approx. 43.73MM shares, utilization is in the range of 90-100%.

mrsepsep

CMPO PCT SMR TWG All above are typical small caps pump and dump, they are due to pop, time to short it

Strong_Ad_4501

Man I was thinking yesterday PCT has a good looking chart. Didn’t get any though and today up 30%

RoboLord66

I feel like wsb could blow up this stock (short squeeze), but these posts seem to keep getting taken down (PCT). Maybe just super low volume... idk

QuirkyAverageJoe

$PCT dump

QuirkyAverageJoe

Short $PCT

QuirkyAverageJoe

$PCT puts

capvistaview

$PCT +25% today with earnings coming on Nov7 YEET

Bradleyy13

PCT running 25% with no news. I didn’t buy enough calls for this

imstaringataplant

Damn PCT runnin

jerseynate

I'm going to give you guys my secret stock. PCT