Posted on March 3, 2022
We’re going to launch a hypersonic guided missile today toward the ham sandwich, pill pushers at AbbVie Inc. (NYSE:ABBV) and earn for all you noble Jews and Noahides a healthy batch of scratch to buy lots of unnecessarily inflated consumer goods!
We’ve got two to close for a shower of cash, thank G-d.
First up is our MTZ initiative from December 30th. The dispatch was called There’s a Hole in the Bucket, Dear MasTec…, and it urged you to sell the MTZ April 14th 85/90 CALL spread for $2.30 and buy the MTZ April 14th 90/85 PUT spread for $2.40. Total debit on the trade was a dime.
The CALL spread can be repurchased for $1.25 (1.75/0.50), and the PUT spread sold for $3.20 (12.40/9.20), leaving you with a NET takeaway of $1.85 on just ten cents laid out.
And that’s a fact.
Our next profit wallop comes from AXP, via a communiqué entitled Spastic Plastic that landed in your mailbox on February 21st.
The trade recommended that you sell the AXP March 18th 185/190 CALL spread for $3.15 and buy the AXP March 18th 195/185 PUT spread for $3.65. Total debit on the affair was $0.50.
As of last night’s close, the CALL spread can be repurchased for $1.91 (3.80/1.89) and the PUT spread offloaded for $6.85 (15.40/8.55) for a grand total, two-handed NET grab of $4.44 on just $0.50 spent.
And it was worth waiting TEN DAYS to accomplish it.
And now we turn to today’s victim…
Remember: all the money you make here should be devoted to the furtherance of Torah study and the spread of G-d’s Truth, lest the Holy One, Blessed Be He, dry up your winnings like a New Mexico river bed.
Torah learning, good Jews and Noahides. For your sons and daughters. For the Avreichim who need your support. For yourself.
That’s the only reason Hashem gave you these winnings!
Now do it right.
The pharma-criminals at ABBV reported better than expected earnings one month ago to the day, and that set the stock into a locomotive stupor that’s now run its course.
Our tea-leaves tell of a share price that could lose roughly 15% over the near-term, and our trade for the day offers a 3471% return for less than $0.30 invested.
And we don’t even need the full 15% decline to pocket it.
Have a look at the chart –
Let’s talk technicals –
And that’s why we’re now acting thus –
A Jew and His Gold recommends you consider selling the ABBV May 20th 140/145 CALL spread* for a credit of $3.15 (12.50/9.35) and buying the ABBV May 20th 145/135 PUT spread** for $3.43 (6.10/2.67). Total debit on the affair is $0.28.
Rationale: we’re looking at a return of $9.72 on just $0.28 invested. That’s a potential NET take of 3471%.
Max loss on the trade is $5.28 (difference between the CALL strikes plus the initial debit).
Breakeven arrives at $142.22. And we have eleven weeks to get there (current price is $149.57).
Again, we thank the market for some very reasonable spreads in helping us craft this one.
Many happy returns!