Posted on September 1, 2022
It’s a company almost no one’s heard of…
In perhaps the least sexy business on the planet…
Whose product is… get this –
Well… not THAT kind of space, exactly.
Rather, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) leases portable work spaces, containers and other storage-unit-what-nots to schools, businesses, construction companies and governments in need of quick, deliverable ‘space’ solutions.
They’re not in the Elon Musk interstellar-travel space.
They’re also not on our buy list.
Well, we believe WSC has finished its bully dance – for the time being – and we also believe we can sop up a 3267% return via a delicately-administered, risk-defined options strategy that guarantees to leave you neither blind nor epidermally scarred.
It’s safe and effective.
Fundamentals on the stock are overdone, as far as we’re concerned.
This is not Pfizer-like criminality, nor Tesla hype.
It’s manufacturing and good, old-fashioned selling.
So when we see numbers like these, we gotta grin and shake our heads.
To wit –
You gettin’ the picture?
Now the chart –
Technically, we have a bearish setup whose details are as follows –
All of which points to the immediate DOWNFALL OF OUR ENEMIES!
And a trade that looks like this…
A Jew and His Gold recommends you consider selling the WSC October 21st 40/45 CALL spread* for a credit of $1.60 (2.30/0.70) and buying the WSC October 21st 40/35 PUT spread** for $1.55 (2.10/0.55). Total credit on the trade is a nickel.
Rationale: great return on investment here – a possible $5.05 on nothing laid out. Adjusted for minimal commissions gives you a return of 3267%.
If you can swing it – you burly he-man, you – you may want to consider taking on multiple units.
Max loss is $4.95 (difference between the CALL strikes less the initial credit).
And the G-d of Israel will avenge His people.
Many happy returns!