We Bank 1200% and 800% in No Time at All! Semiconductors are Next… (SOXL, QCOM, MDLZ, GIS)

Semiconductors have blown the lid off the rest of the market in the last week, though, in truth, it’s been some in that sector more than others.

Today’s trade seeks to exploit a strange dichotomy we found in the semiconductor patch—one that we believe could deliver big.

But before we get there, of course, there’s money to be had.

So let’s pocket it.

We start with our Mondelez adventure, that began on May 3^rd in a letter called Howdja Like to Snack on a 1567% Return?  There, you’ll recall, we urged you to sell the MDLZ June 16^th 77.50/80 CALL spread for $1.05 and buy the MDLZ September 15^th 77.50/75 PUT spread for the same $1.05.  Zero Premium was the result.

And now…?

The CALL spread can be repurchased for $0.10 (0.10/–) while the PUT spread can be dumped for $2.05 (4.00/1.95).

Get it done, and you take home $1.95 on no outlay in just one month.

Adjusted for minimal commissions gives you 1200%.

REPEAT: 1200% in a month!

NEXT!!!

We’re closing our GIS trade, as well.

The dispatch was called General Mills Does 4900% Dunkaroo Trix!, and it arrived on April 17^th with the following advice: sell the GIS June 16^th 87.50/90 CALL spread for $1.00 and buy the GIS June 16^th 85/80 PUT spread for $1.10.  Total debit on the deal was ten cents.

And now, we’re recommending you close out by buying back the CALL spread and selling the PUT spread.

The math is like this:

The CALL spread will cost you $0.25 (0.25/–) and the PUT spread will deliver $1.15 (1.45/0.30).

Do it, and your take is a buxom $0.80 on just ten cents spent.

And that’s 800%.

Mr. Jameson from “west of the Mississippi” deserves kudos for piling up on this one.

Good work.

And now, on to the semis…

As mentioned, we’re going to have a look at the broad semiconductor sub-sector against a single chip-maker that we believe reveals a remarkable trade opportunity.

As you may have seen, all the semis are following NVIDIA into outer space this week, as it’s become the trade-du-jour for all the mouth-breathing, AI-following pantywaist crowd.

Look for a speedy reversal.

And may G-d in heaven bless you and yours!

Many happy returns!

Matt McAbby

Follow @HughLOHaynew