Lufax: A 38% Yield Put Strategy Based On $4.63 Billion In Excess Capital

Mosiv Capital13 FollowersFollow5ShareSavePlay(17min)CommentsSummaryLufax trades at just 0.22x tangible book, with $9.58B TBV and $8.66B in net cash and investments, far exceeding its market cap.SBO is downsizing, with a $1.8B loan loss wall, far more than actual charge-offs; PACF now drives growth with stable 1.1%–1.3% NPLs.LU holds $4.63B in excess capital, with Ping An’s 74% stake providing governance, funding advantages, and a credible floor to downside risk.Extreme Stress Test: Even under a worst 10% charge-off scenario, total equity impairment would be capped at just $820M—a mere 8.5% hit to TBV. The downside is structurally floored.I am selling fully cash-secured $2.00 puts (Jan 2027), targeting a 38% annualized yield; assignment implies acquiring LU at just 14% of TBV. Lu shengyi/iStock via Getty Images Lufax Holding Ltd. (LU) is trading at an unbelievably low price. After backing out intangibles, goodwill, and deferred tax assets, tangible book value comes to $9.58 billion—more than four times the current market capitalization. Besides, $9.54 billion is just cashThis article was written byMosiv Capital13 FollowersFollowAbout Mosiv CapitalMosiv Capital is a proprietary investment firm rooted in the fundamentalist principles of Benjamin Graham and the early partnerships of Warren Buffett. Founded by a veteran engineer with 30 years of R&D expertise in power electronics and two decades of global investment experience, we deconstruct intrinsic business value with engineering-like rigor. Our core mandate is singular: to generate absolute returns that are entirely uncorrelated to macroeconomic conditions.Our Core Strategy Matrix: Dislocation & Niche Focus: We target small- and mid-cap equities, hunting for severely mispriced assets that exist strictly within the blind spots of large institutional capital.Special Situations & Event-Driven: We do not speculate on price action. We extract deterministic, structural returns through contrarian investing and event-driven arbitrage.Tail-Risk Underwriting: Operating strictly with zero leverage, we utilize options to harvest high market volatility, effectively executing a dual arbitrage strategy across both valuation and volatility.The Disciplined Acquirer: We do not gamble. By systematically underwriting cash-secured puts, every option trade is fully cash-backed. We stand ready—and eager—to take full assignment of distressed assets at deeply discounted strike prices.Analyst’s Disclosure: I/we have a beneficial long position in the shares of LU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.