$50k 2026 options challenge: First pick PAA - IV too low to Ignore

New challenge for 2026. Options only, one stock at a time. No short duration options (must be at least a few months until expiration). Will be nimble (e.g. take profits, reallocate to better performing opportunities, cut losses, etc.)

First pick - PAA - inspired by the drill baby drill post from a couple years ago!

- PAA continues to execute: year over year EBITDA growth, deleveraging, making add-on acquisitions, and divesting non-core businesses
- Low IV: makes sense given it’s a dividend stock, but IV is historically low. Can pick up Jan 2027 $20C for $0.40. A 5% rise in underlying stock price should make these double. a 10% rise would triple and a 14% rise would make these quadruple.
- Attractive valuation: trading at sub 7x EV / EBITDA which is less than peers (ET trades for 8.5x)

Will keep you updated on all future trades. Goal for 2026 is $500k.