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CASHING OUT! Market Weakness Delivers Wham-Doggy Profits! (CROX,NVDA)

Posted on October 29, 2020

We start with the bank.

On September 22nd we opened an Nvidia trade, all the details of which can be found here.

In a word, we’re now owners of the long October 30th 565/525 PUT spread for a debit of $27.55.

And today?

We’re closing her out.

The long 565 PUT is worth $58.75 and the 525 goes for $21.90.  Sell the first and buy back the second, and you take home a very plump profit of $9.30 on a $27.55 outlay.

Now get on with your fluting…

By the way, if you want to leave the trade until Friday’s close, you may pocket the full $40 spread.

Or you may not.

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Today’s trade is a play on Crocs Inc. (NASDAQ:CROX), makers of molded, slip-on, moderately toxic footwear for the leisurely-minded consumer.

Problem is the stock price has come unbuckled of late.

And even though she’s managed to trod the latest market downdraft extremely well, we believe the resilience will be short-lived.

Let’s start with her weekly chart –

Many happy returns!

Matt McAbby

 

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