Posted on November 8, 2023
The rally was fine while it lasted, but there’s nothing underpinning it.
What? You think something changed between last week and this?
It’s all algorithmically generated hype.
But will it continue?
Maybe a little.
More likely, though, we’ll watch this thing turn over, spittle and dive like Murray Kadowski into his Six Banana Joy Split down at the Winnebago Sundae Emporium on Elm.
Before we get to today’s action, though, we’re closing our STRL trade, opened on August 24th in a letter called Who Profits From Hawaiian Wildfires?
There, we urged you to sell the STRL December 15th 80/85 CALL spread for $1.80 and buy the STRL December 15th 75/70 PUT spread for $2.20. Total debit was $0.40.
And with STRL now trading at $, we’re recommending you close.
Sell the PUT spread for $1.90 (8.70/6.80) and leave the CALL spread to wither.
That gives you a $1.50 NET haul on just $0.40 spent.
And that’s 375%.
We’ll keep you apprised if action needs be taken on the short CALL side.
And now we turn to today’s bet on Stride Inc. (NYSE:LRN), providers of online educational packages and programs to middle and high school students.
After announcing earnings on October 24th, shares in LRN bumped by a whopping 16%!
Was it merited?
Have a look at the fundamentals—
Altogether, a not unsightly picture.
Many happy returns!