Posted on April 17, 2023
General Mills, Inc. (NYSE:GIS) has been producing poisoned and pesticide-laced foods for the last 155 years.
That doesn’t mean we can’t make money off them.
After all, everyone should have a chance to savor his own Bugles, Go-Gurt and Fruit Gushers.
However you slice it, the company’s stock has been on fire of late, and thankfully we’ve been retained by good Jews and Noahides the world over to douse the flame.
But before we do, have a look at some fundamentals—
GIS’s cereal brands have suffered from input cost inflation, supply chain disruptions and general shortages. But the bulls have chosen to ignore all that and just keep buying.
Yet the truth comes through in the technicals.
As you’ll see below, the bears are slowly taking over trade in GIS stock.
Have a look at the chart—
And it’s for all the foregoing that we’ve crafted the following for your option-dining pleasure:
A Jew and His Money recommends you consider selling the GIS June 16th 87.50/90 CALL spread* for a credit of $1.00 (2.20/1.20) and buying the GIS June 16th 85/80 PUT spread** for $1.10 (1.60/0.50). Total debit on the trade is ten cents.
Rationale: max gain on the trade is $4.90 (4900%), while…
Max loss is $2.60 (difference between the CALL strikes plus the initial debit).
Great risk reward profile.
We require a decline of just 1.9% to hit breakeven. Thereafter it’s all gravy.
May the Holy One ever provide the meat!
With kind regards,
Hugh L. O’Haynew
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