Posted on April 5, 2021
Before today’s trade, we have one to close.
Our IYT/DIA pairing finally closed last Thursday with a clever little profit.
The details of the trade can be found HERE.
In short, we were holding two short DIA April 1st 335 CALLs and a credit of $1.72.
The CALLs expired OTM worthless and we walked with the cash.
That’s $1.72 net on $1.80 laid out.
A profit of 96%.
And that beats an April snowfall, any day.
Today’s trade is based on Westford, Massachusetts’ Kadant Inc. (NYSE:KAI), makers of industrial machinery for nearly every application going.
Without boring you with all the unnecessary details (and certainly without a discussion of the company’s ‘conveying and vibratory equipment’ or its applications for ‘oil and grease absorption’ – we’re a PG rated outfit), we’ll have a look at the fundamentals.
In a word, they’re overdone.
But what’s in a number, right? – in these days of Batflu-bolstered market bunk.
Pictures are better.
With kind regards,
Hugh L. O’Haynew