6200% and a Pair of 1000s%! Trade Against the Traders! (TW, EXP, RH, GRBK)

In this last week before the Day of Judgement, Rosh Hashana, we bid all a successful, full return to Our Father, Our King, the Holy One, Blessed Be He, Hashem Yitbarach Shemo.

And may the New Year bring a blessing, holiness and fear of the Al-mighty to the entire world.

*Important Subscriber Information: In honor of that day, A Jew and His Money Will not be published next Monday, September 18^th.  Rather, it will appear next Thursday, September 21^st instead.

 Give Thanks and Praise for All His Creation!

Tradeweb Markets Inc. (NASDAQ:TW) provides electronic order and trading systems to those with wallets deep enough to pay for them.

The company beat on both earnings and sales in late July, sending the stock considerably higher, but the gains, it appears, were pyrrhic.

Why?

Earnings estimates have been revised lower for some time now, and the industry itself is not among the strongest.

All told, it looks dismal.

And that provides us with a tremendous opportunity today to cash in by some 2400% on the company’s options.

But more on that in a moment.

And we start with our EXP trade, whose details can be found HERE.

In brief, we’re holding a credit of $2.45 and a short October 200 CALL that can now be repurchased for $0.80.

Do it, and you step away with $1.65 NET on nothing spent.

Adjusted for minimal commissions gives you a win of 1000%.

AND THERE AIN’T NOTHING WRONG WITH THAT…

Next is our RH initiative, whose details are located HERE.

We’re currently in possession of a $5.30 credit, a short 400 CALL and our 330/320 PUT spread.

And…

It’s an awesome time for closing.

The short CALL can be repurchased for just $0.10, while the PUT spread can be sold for an outsized $7.20 (19.70/12.50)!

Get it done, and you NET $12.40 on an initial outlay of just $0.20.

And that’s 6200%!

We conclude the winnings with our GRBK trade from July 31^st.

The letter was called If You Build it, We Will Sell, and it urged you to sell the GRBK November 17^th 55/60 CALL spread for $1.80 and buy the GRBK November 17^th 50/45 PUT spread for the same $1.80.  Net Zero Premium was the result.

And today…?

The CALL spread can be bought back for $0.85 (1.25/0.40) and the PUT spread sold for $2.50 (6.20/3.70).

Do it, and you NET $1.65 on ZERO outlay.

Adjusted for minimal commissions makes for another 1000% return!

Get High on That, Baby…

And now to this week’s trade.

TW’s fundamentals leave a lot to be desired.

• P/E is 54.29, though analyst consensus is for shrinkage to just 34.71 by next Rosh Hashana.
• Dividend Yield is a microscopic 0.42%.
• P/B is 3.52.
• Q/Q Sales arrived DOWN 49.00%, while…
• Q/Q EPS arrived DOWN 42.60%.  Which kind of makes you wonder why the stock popped so wildly after earnings…
• Insiders weren’t wondering at all, though; over the last six months they unloaded 49.57% of their holdings!

And that, too, is a sign of a coming break.

Here’s the chart—

But we don’t expect that to continue beyond the holiday.

Earthquakes await!

Hashem, save us!

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew