Posted on April 25, 2022
Since we last touched base, the market has crumbled, along with a whole lot of matza.
And that’s been good news for our subscribers, as we’re now ready to cash out of seven huge winners.
Directly after that, we serve up a microwave wonder featuring Kraft Heinz (NYSE:KHC) in all its tasty, factory-derived flavor.
We start with our UGI/XLU initiative that arrived on April 6th in a letter called We Open Afresh on the Utility Front. The trade urged you to go long UGI stock (then at $36.08) and offset it with a short on XLU (then at $75.39). We also suggested you purchase a protective XLU May 20th 78 CALL for $0.77 and sell a protective UGI May 20th 35 PUT for $0.85. Total credit was $39.39.
UGI trades for $36.63 and XLU for $74.25. Sell the former and buy back the latter and you NET $1.77 (39.39 – 37.62) from the stock.
Then close out the options – sell the XLU CALL for $0.15 and buy back the UGI PUT for $0.55 – and your bottom line profit is $1.37 on nothing expended.
Adjusted for minimal commissions gives you an 813% return in under three weeks!
Next up is our MOS initiative, whose trade details can be found HERE.
In short, we’re holding a debit of $0.17 and the May 20th synthetic short with a 70 strike.
And with the shares now at $66.77, we say it’s time to close.
Sell the PUT for $6.75 and buy back the CALL for $4.05, and you walk pretty to the tune of $2.72 on nothing spent (trade was set for a two cent credit).
Adjusted for minimal commissions gives you a giant-size 1713% profit.
And that’s more than just dung in your garden.
Speaking of which, our bet on RGLD, whose particulars are located HERE, has us in possession of a $0.58 debit and the June 17th 140 synthetic short.
RGLD last traded at $137.29, and we say that’s the last of our trade, too.
The long PUT is worth $8.20 and the short CALL goes for $6.30. Sell the former, buy back the latter and you dipsey-doodle home with $1.27 NET on an initial expenditure of a nickel.
That’s one for the books, folks – a cool 2540%.
Can’t get enough of that p**p.
Details on our CF trade can be accessed HERE.
In sum, we have a credit of $3.40 and we’re holding the May 20th synthetic short at 100.
And don’tcha know… CF stock now sells for $96.94.
That puts this one in play.
Buy back the CALL for $5.50 and sell off the PUT for $8.60 and your take is a very fat $6.60 NET on an initial outlay of ZILCH.
Adjusted for commissions gives us a 4300% profit.
For just sitting around.
Moving right along, we arrive at our AA trade whose lowdown is found HERE.
To keep it short, we’re looking at a credit of $2.05 and are holding the May 20th 80 synthetic short.
The CALL goes for $1.47 – buy it back.
The PUT sells for $13.95 – sell it off.
Get it done and you’re $10.28 the richer (trade was launched with a debit of $0.15).
That’s a 6853% profit.
And that’s a meeting with the big boys.
The skinny on our HAL trade can be sourced HERE.
In short, we’ve got a credit of $0.07 and are in possession of the June 17th 38 synthetic short.
And we say that’s enough.
The 38 CALL can be bought back for $2.89 and the 38 PUT sold for $3.10.
Execute, and $0.28 NET is yours on nothing laid out (initial credit of $0.07).
Adjusted for commissions gives you 86%.
That’s right… not every win is an avalanche.
And last but not least, we arrive at our GWW wager, for which we’re holding a credit of $0.40 and a short May 20th 550/560 CALL spread.
Action: sell the long 560 CALL and leave the short 550 be.
That brings you an additional $0.85, for a current total credit of $1.25.
With the stock now trading at $499.34, she’s got better than 10% to climb in the next 25 days to put the short CALL in danger.
Set a STOP buy at 550 to be sure you take no losses.
And keep an eye.
We will, too.
And now for macaroni and ketchup…
Pre-Batflu readers will remember that we played Kraft Heinz for a 1290% profit back in the fall of 2019.
And again, today, the sound of ketchup-squirt is in the air, as the stock, we believe, prepares once more to stain the tablecloth.
Consider the following –
Have earnings problems. To wit –
And may the Holy One continue to guide us and our loved ones b’rachamim.
With kind regards,
Hugh L. O’Haynew