בס״ד

Chalk up 1567% and 420% Wins! … And Forget About Nozzles, Ducting, and Atomization Devices. (PH, GPK, TNET)

Posted on December 20, 2021

Two quick announcements before we climb aboard the greased rotor for the week.

First, with respect to our GPK trade that we recommended you leave alone last Friday as options expired – it panned out beautifully.

The stock fell precipitously, and we took home 420%.

Congratulations to all who partook.

Second, our TNET winnings were, indeed, 1567%, as forecast.

A solid win.

We’ll be looking to close our MSA initiative in the coming days for slaughter-profits, too.  Stay tuned.  She ripening just fine.

And Today…?

Today, we’re taking on the military-industrial complex with a quiver full of arrows, all aimed at Cleveland’s Parker-Hannifin Corporation (NYSE:PH).

For those unfamiliar with the company, they manufacture “motion and control” technologies.

Got that?

According to official PH literature, that would include –

“shielding products… noise vibration and harshness solutions… connectors, which control, transmit, and contain fluid…engine build-up ducting, engine exhaust nozzles…fuel tank inerting systems, [and] fluid atomization devices.”

Come on…!

YER MAKING THAT STUFF UP!

The company offers a respectable lineup of fundamentals.

  • Her P/E is 21.16,
  • Her Dividend Yield is 1.36%, and
  • Her Price to Book ratio is 4.59.

PH delivered strong earnings at the beginning of November (as you’ll see on the chart below), but she’s having difficulties holding her gains.

Have a look –

 

Technically, we’ve got bears in the driver seat –

  1. RSI is sub-waterline (in green), and
  2. MACD will follow suit with a deep-dive today.  Once that happens, technicians will load their plates like gluttons, and the downside feast will begin.
  3. Price is now holding at a key inflection point (in red).  Support in the 300 range from the two intermediate-term trendlines could generate some play in that area before the next leg down starts.  It could be a few days.  It could be sooner.  Next stop lower is 265.
  4. The top – at 335 – appears clearly established.  A textbook island reversal (in blue) along with a bearish engulfing pattern (in black) mark it to the day.

And it’s for all the foregoing that we now offer the marvelicious trade that follows –

A Jew and His Money recommends you consider selling the PH February 18th 290/300 CALL spread* for a credit of $5.20 (21.70/16.50) and buying the PH 300/290 PUT spread** for a debit of $4.50 (14.00/9.50).  Total credit on the trade is $0.70.

[*Sell the 290 Call and buy the 300 CALL.  **Buy the 300 PUT and sell the 290 PUT.]

Rationale: we love the initial credit that pays us to take the trade.  We also love the possible payout – $10.70 on nothing expended (our max win).

Max loss is $9.30, should PH close above 300 at expiry.

There’s one other way to play this for a potential DiMaggio homerun…

And that’s to widen the PUT spread to 300/280 (14.00/6.60) for a net debit on the trade of $2.20.

Max win in that scenario would be $17.80 (on a $2.20 ante), and max loss $12.20.

For the stated trade to pay in full, we need a decline of just 4.1% before expiry.

For the alternate (second) trade to pay in full, we’d need a pullback of 7.4%.

Sefer HaGeulah opens this week.  May it bring winnings galore to all you good Jews and Noahides!

.ה’ מלך, ה’ מלך, ה’ ימלוך לעולם ועד

With kind regards,

Hugh L. O’Haynew

 

3 responses to “Chalk up 1567% and 420% Wins! … And Forget About Nozzles, Ducting, and Atomization Devices. (PH, GPK, TNET)”

  1. Jack Peterson says:

    I sent you the details on this trade yesterday in an email with attached screen shots asking to see how one would bail out of this before expiry, not that I would but I would just like to understand the actual cost to exit those positions if one thought they might want to. I get that the down side is capped at 1000, but looking at the actual prices on the option chains The math works out to a debit in the 500.00 range but the confirmation says the debit on the trade is like 280.00 with a downside risk of 1280 bucks. Am I missing something here?

  2. Hugh L. O'Haynew says:

    bs’d
    Hi Jack,
    We went through your email and the details you sent to the site, and it appears everything is in order.
    The problem appears to be that you entered the trade on the simulator as a TO OPEN order, and, as such, the numbers that were offered in the confirmation tell of a potential $1000 loss and an initial debit of $280.
    But you wanted to enter a TO CLOSE order on an existing position.
    It appears that according to those numbers, bailing on the trade would have cost you in the neighborhood of $500, as you mentioned.
    Please check with a rep at THINKORSWIM if you can’t find the proper box to check for TO OPEN and TO CLOSE orders.
    Hope that helps,
    Hugh

  3. Jack Peterson says:

    I know it looks that way and that seems to be what is happening on auto, but I did go in and specify it to be sell & buy to close on all 4 strikes but I still got the same numbers in the confirmation, I’ll get with support to find out what is going on. Thanks!

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