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.
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.
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.”
YER MAKING THAT STUFF UP!
The company offers a respectable lineup of fundamentals.
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 –
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.
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!
With kind regards,
Hugh L. O’Haynew