Posted on September 4, 2023
We’ve got a whacko trade for you today, based on some very strange option prices we dug up on EME…
First, though, we’re closing our HELE trade for good.
You’ll recall that we made partial moves HERE to shut her down, leaving us with a credit of $3.30 and an open, short November 145 CALL.
We’re buying back the CALL for $2.20.
That gives us $1.10 NET on nothing spent.
After accounting for minimal commissions, that’s 633%.
This week’s trade features EMCOR Group (NYSE:EME), the electrical infrastructure mavens, serving big government and corporate interests across the U.S. and U.K.
It appears something happened on the way to fleecing the bottomless cash pits of the Statist-Industrialist hegemons, and it looks like this—
That’s right; the stock went haywire.
This is a monthly chart of EME for the last 25 years, and it clearly shows an unsustainable price trajectory—one that we feel is now ripe for the sniper.
But before we deliver the silver bullet, let’s take a look at some numbers.
And that essentially means NO price gains to speak of.
The full measure of the stock is now baked in.
And like the bite of a bulldog, very little pleasure forthcoming.
And may the best skier win!
With kind regards,
Hugh L. O’Haynew