Posted on November 24, 2022
We’ve got a glorious one today for you to chew on, but first, a little squiggle of a trade enhancement on our open AEO initiative.
We’re currently holding one lot of AEO and an open, short February 17th 15 CALL.
With our breakeven at $14.95, and AEO jumping by 22% in the last two sessions to sit at $15.80, we’re now recommending the following—
Buy back the short 15 CALL for $2.14 and sell the May 19th 15 CALL for $2.80, thereby reducing our breakeven on the trade to just $14.29 and setting us up for much bigger profits.
By the by, we’ve also collected a dividend (in June), but haven’t factored that into our winnings.
And now we address that age-old riddle—how many licks does it take to get to the Tootsie Roll center of a Tootsie Pop…?
Tootsie Roll Industries Inc. (NYSE:TR) poisons your children with the following innocuously named toxins: Tootsie Roll, Tootsie Pops, Child’s Play, Blow-Pop, Charms, Junior Mints, Sugar Babies, Dubble Bubble and other such nonsense.
And lately, they’ve done a number on investors, too, tricking them into believing that a 38% rise in the stock price over six weeks is perfectly acceptable.
But we’re not fooled.
Because we know that a legacy candy manufacturer shouldn’t have the following fundamentals…
That said, there’s a limit to all things criminal, too.
We stress that an early turnaround on the trade is likely, so keep your finger on the trigger.
The G-d of Israel will see us through.
Many happy returns!