בס״ד

Deliverance! Massive Profit Splash as Egyptians Drown in the Sea! (KHC, UGI/XLU, MOS, RGLD, CF, AA, HAL, GWW)

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.

Including – 6853%, 4300%, 2540% and 1713%.

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.

And today…?

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!

Praised be the G-d of Abraham, Isaac and Jacob!

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%.

More Fertilizer!

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.

Dreamy, baby!

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.

And…

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.

Two More!

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.

Fundamentals

Consider the following –

  • The shares trade with an outrageous P/E of 68.98,
  • Carry a Dividend Yield of 3.71 (nothing wrong there),
  • A Price to Book of 1.07 (also good), but…

Have earnings problems.  To wit –

  • EPS for the last five years (booked) and the next five (expected) are negative.
  • Latest Q/Q sales and earnings declined by 3.30% and 152.70% respectively.
  • That could be the reason insiders offloaded a massive 83.28% of their holdings over the last six months, for better than $1 billion.

Whoops!

Now look at the chart –

And may the Holy One continue to guide us and our loved ones b’rachamim.

With kind regards,

Hugh L. O’Haynew

 

Leave a Reply

Your email address will not be published.