Posted on June 8, 2023
Houston’s Kinder Morgan, Inc. (NYSE:KMI) owns and operates 83,000 miles of Natural Gas pipelines across North America.
That makes them something of a mover in the industry.
That said, the stock has been falling for some time now—and the energy sector in general is in the doldrums.
So what will be…?
We’ll pursue that in a moment.
But first, some big wins to bank!
We start with our WWE trade of May 8th. The letter was called Down For the Count: WWE Gets Flying Pile-Drive Off the Turnbuckle, and it urged you to set the WWE July 21st 110 synthetic short for a debit of $3.60 and sell the WWE July 21st 105 PUT for a credit of $4.50. Total credit on the affair was $0.90.
We’re closing the PUTs for a credit of $2.50 (11.50/9.00) and leaving the short CALL to wither.
We can’t see this turning around at this point, but if it does, we’ll be in touch.
Those who prefer to sweep up before the meal is done are invited to buy back the CALL for $0.95.
In the meantime, we’re making a temporary booking of $3.40 NET profit on NOTHING expended.
Adjusted for minimal commissions makes for a 2167% take.
Next up is our MCD initiative from April 24th. The dispatch was entitled McDonalds Adding Motor Oil… and it suggested you sell the MCD July 21st 305/310 CALL spread for $1.32 and buy the MCD Jul 21st 285/280 PUT spread for $1.50. Total debit was $0.18.
Well, well, well…
Today, the CALLs can be left to wither (and, as above, we’ll keep you posted if action needs be taken) and the PUT spread shut down for a healthy $1.80 (5.55/3.75).
That NETs you $1.62 on $0.18 spent, and that’s a mighty fine 900%.
Last up is our MNST venture from May 11th.
The missive was called Buyback, Kickback, Blowback, Crash, and it recommended you sell the MNST September 15th 60/65 CALL spread for $1.85 and buy the MNST September 15th 60/55 PUT spread for $1.95. Total debit was $0.10.
And now, the PUT spread can be sold for $2.05 (3.70/1.65)
While the short CALL spread can be left to rot. We believe there’s still a great deal of downside for the stock—but, as always, in the case of a turnaround, we’ll keep you apprised of any action that’s warranted.
For now, call it a (conditional) $1.95 NET win on just $0.10 spent.
And that’s 1950%.
And now, we arrive at our trade for the day.
As mentioned, we’re looking at the pipeline mavens at KMI, whose fundermentals look as follows—
Many happy returns!