Early Arrival! Two BIG WINS for 525% and 3200%. Then, The Imaginary Adversarial Complex… (TXT, JBL, HELE)

Posted on August 16, 2023

Textron Inc. (NYSE:TXT) delivered earnings on July 27th and the stock soared (see chart, below).

But what happens between the heat and spasm of an earnings release and the sober, daily grind that follows is even more important.

And that’s why we’re trading TXT today.


Before we outline today’s trade, we have two to close for healthy wins.

The first is our JBL initiative from July 10th.

The letter was called Audio Equipment Maker Goes Deaf, and it urged you to sell the JBL September 15th 110/115 CALL spread for $1.90 and buy the JBL 110/105 PUT spread for $2.10.  Total debit was $0.20.

And now…?

The CALL spread can be repurchased for $1.30 (1.95/0.65) and the PUT spread sold for $2.55 (5.40/2.85).

Get it done and you walk with $1.05 NET on $0.20 spent.

And that’s 525%, bro.

Congrats to the L-man and Pop Warner for taking on multiples.


Our HELE trade arrived at your inbox on August 6th in a communique called The Ploy to Destroy Helen of Troy.

The recommendation was to sell the HELE November 17th 145/150 CALL spread for a credit of $1.50 and buy the HELE November 17th 120/115 PUT spread for $1.40 for a total debit of $0.10.

And today…

The long CALL can be sold for $1.90 and the PUT spread closed for $1.40 (7.00/5.60).

We’re advising you take care of both those operations and leave the short 145 CALL to wither.

Given our $3.30 cash in hand (and the initial $0.10 debit), the stock would have to rise to $148.20 before we moved into the red.

And that’s an unlikely gain of 19%.

We’re going to keep an eye and attempt to close the CALL on upcoming weakness.

That said, if the option expires worthless, we’ll have banked a hefty 3200%.

Stay tuned.


TXT is a military contractor—primarily—and these are good days for those in kill-tech.

Fundamentally, though, we see headwinds.

For example—

  • P/E is 17.48, but consensus is for that number to contract to just 12.90 a year out.
  • Dividend yield is a near-meaningless 0.11%.
  • Price to book is 2.17.
  • And maybe most important: Sales for the past FIVE years have DECLINED by 1.90% on average per year.
  • Oh, yeah—and Insiders sold 23.53% of their shares in the last six months.

Doesn’t offer a wealth of confidence.

Here’s the chart—

But only the Master of the Universe, the Holy One of Israel knows.

Place your faith and trust in Him.

Many happy returns!

Matt McAbby


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