בס״ד

Five MASSIVE Winners! Including 1100%, 981% & 514%! And the Jews Make War on a Pharma Scam! (MCK, AQUA, VRSK, LIN, XYL, ADP)

Posted on January 17, 2022

Death to Evildoers!  Death to the Enemies of G-d!

Death to Amalek and the Erev Rav!

Today’s trade is a takedown of a 200 year-old Texas healthcare operation called McKesson Corp. (NYSE:MCK), middleman delivery boys for everything pharma related.

As you’ll see, the trade has been crafted for a massive take on a small move – with nothing laid out to set it up.

Too Good to be True!

We’ll see…

But before we sell you on the MCK SELL, we have FIVE whopper trades to close – and a whack of cash to pocket.

So let’s git!

We start with our AQUA trade, whose details can be found HERE.

Bottom line is we’ve got a $2.00 debit and are holding the February 18th 45 synthetic short

And…?

With AQUA at $38.62, we say it’s time to close.

Buy back the short CALL for $1.75 and sell the PUT for $5.90.

That puts $1.80 NET in your pocket on an initial outlay of just $0.35.

And that’s a ginormous 514%!

NEXT!

Our VRSK trade details can be found HERE.

In sum, we’ve got a $5.80 credit and are holding the March 18th 210 synthetic short.

And great news!

With the stock at $198.15, the synthetic short can be closed for Humphrey Bogart seizure profits.

Buy back the 210 CALL for $4.10 and sell the 210 PUT for $13.60, and you skip out with $15.70 NET on $1.60 expended.

And that’s a fair and square 981%.

On January 5th we sent you Gas Will Rise… Until it Stops, our LIN trade that urged the sale of the LIN February 18th 340/350 CALL spread for $4.10 and purchase of the LIN February 18th 340/330 PUT spread for $3.90.  Total credit on the affair was $0.20.

And whaddaya know, today the CALL spread can be repurchased for $3.50 (4.60/1.10), while the PUT spread will fetch you $5.10 (14.80/9.70).

Get that done and you step away with a very fine $1.80 on zilch laid out.

Adjusted for basic commissions gives you a handy 1100%.

Move it on over!

Our XYL initiative was sent out December 13th in Dead in the Water: Xylem Swims with the Fishes.  There, we recommended you sell the XYL January 21st 120/125 CALL spread for $1.00 and buy the XYL January 21st 120/115 PUT spread for $2.15.  Total debit was $1.15.

And now?

With expiry at week’s end and the possibility of a bounce before then, we’re shutting her down.

Buy back the short 120 CALL for $0.15, sell the long 120 PUT for $7.70 and buy back the short 115 PUT for $4.20.

Execute, and you jump with $2.20 NET on $1.15 spent.

And that’s a fat 191%.

Our ADP trade’s details can be accessed HERE.

In brief, we’re holding the ADP May 20th 230 synthetic short and a credit of $3.35.

And because we’ve a hunch the stock may skitter and scamper at this level for a short bit, we’re exiting the trade today.

Buy back the short 230 CALL for $13.10 and sell the 230 PUT for $13.80 and you close with

$4.05 NET on an original outlay of $6.95.

That’s 58% on the plus side.

Or four hundred and five bucks.

Whichever you prefer.

TODAY’S TRADE!

As mentioned, we’re chasing MCK lower today for very little cash up front, and the possibility of a wooly mammoth takeaway.

Fundamentals

MCK is a little sickly on the fundamental front.

To wit –

  • There’s no P/E (i.e., no earnings),
  • Dividend Yield is 0.73%,
  • There’s no P/B (because there’s no “Book Value”),
  • EPS this year were DOWN 667.60% (!),
  • EPS over the last five years were DOWN 37.30% (!!!), and
  • Next year’s Earnings are expected to DECLINE a further 3.06%.

Feeling optimistic…?

Insiders aren’t.

They sold off 65.36% of their shares (worth $30 million) over the last six months, of which $24 million was dumped in just the last 60 days.

Hmm…

Now to the chart –

Technically, we have –

  1. RSI registering near-overbought readings twice in the last two weeks (in green).  And while those are not TRUE 80+ overbought indications, WEEKLY RSI did go overbought just last week (not seen here).
  2. On top of that, we have a rising wedge, which is everywhere and always a bearish formation (in red).  The lower edge of the wedge is now at 245 and rising alongside the short-term moving average.  That level is first support.
  3. Should price move below that level, next stop down is the 137 DMA, now at 213 and rising (in black).
  4. There’s a single gap that needs filling at 210 (in blue), and
  5. Fibonacci retracement calculations see a retreat (at first) to 201.  That level now aligns with the 274 DMA, a line that MCK has not touched in almost 15 months.  And we say that contact is long overdue.

Our trade, however, is not predicated upon such a steep decline.

On the contrary, a far more modest pullback will bring us the riches we seek.

Have a look –

A Jew and His Money recommends you consider selling the MCK May 20th 250/260 CALL spread* for a credit of $4.40 (20.30/15.90) and buying the MCK May 20th 250/240 PUT spread** for $4.60 (14.70/10.10).  Total credit on the trade is $0.20.

[*Sell the 250 CALL and buy the 260 CALL.  **Buy the 250 PUT and sell the 240 PUT.]

Rationale: we’re looking at an opening credit to win a max $10.20 on the trade.

And it’s always nice pocket something at the outset, no?

Anywho, max loss is $9.80 (difference between the CALL strikes less the initial credit).

Breakeven on the trade arrives at $250.20, just 2.4% below current price levels.

Full payout is ours on a 6.4% decline.

And we’ve got four months to accomplish that.

!ה’ יעזור

With kind regards,

Hugh L. O’Haynew

 

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