Posted on March 16, 2022
Purim Sameach to ALL!
We’re coming at you early today in light of the great revolution that’s expected tomorrow.
On Monday, we recommended a CVX bet that’s produced a windfall in just days.
The letter was called Watch Now as We Line Up Chevron…, and it urged you to sell the CVX April 14th 170/175 CALL spread for $1.95 and buy the CVX April 14th 165/160 PUT spread for $2.00. Total debit on the affair was a nickel.
And just 48 hours later –
The CALL spread can be repurchased for $1.18 (2.84/1.66) and the PUT spread offloaded for $2.75 (10.75/8.00).
Execute, and you bank $1.52 NET on just a nickel spent.
That amounts to 3040%.
And now we move to today’s offering.
We’re playing CF Industries (NYSE:CF) this morning, because the makers of granular urea, diesel exhaust fluid and urea liquor are now ripe for the harvest.
By the way…
Granular urea? Sounds painful.
Diesel exhaust fluid? For WHAT?
Urea liquor? How desperate do you have to be…?
Good Jews and Noahides, the company’s shares are about tumble, and we’ve devised a masterful trade that costs absolutely nothing to initiate and stands to deliver $5.10.
Now consider the fundamentals –
Oh, yeah… and JP Morgan downgraded the stock to ‘Neutral’ right before the latest ka-ching started to ring-a-ling.
Now look at the chart –
Technicals are wholly negative –
But we needn’t get there to profit in full from today’s trade.
Have a look –
A Jew and His Gold recommends you consider selling the CF April 14th 90/95 CALL spread* for a credit of $2.40 (9.00/6.60) and buying the CF April 14th 92.50/87.50 PUT spread** for $2.30 (3.20/5.50). Total credit on the trade is $0.10.
Rationale: we have a chance to pocket $5.10 on nothing spent if we’re right. And that’s fantabulous.
Max loss is $4.90 (difference between the CALL strikes less the initial credit).
The trade is plagued by a single issue, and that’s the time frame. We’ve given ourselves 30 days to close, and that places this one in the SPECULATIVE realm.
But if Mordecai and Esther could face down the accursed Haman and evil Ahasuerus… then what’s 30 days for simple yidden like us?
Many happy returns!