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Kroger Delivers a Sky High 2050%! And Money Doesn’t Grow on Trees… (DLTR, KR)

Posted on May 2, 2022

The Dollar Tree (NASDAQ:DLTR) is the source of our money-making alchemy today, and just in time, too!

It appears a great number of youthful George Washington’s are now grinding their axes, readying themselves to fell what they see as a stock that’s grown ridiculously quickly to heights unimaginable and is now fit only for the wood stove.

We’ll get there, friends, but first, we have one to close.

It’s our Kroger trade, whose details can be found HERE.

To sum, we’re holding the KR May 20th 55 synthetic short, along with a $0.27 debit.

And…

Well, the synthetic short can now be closed* for a credit of $1.13 (2.44/1.31), and we say do it.

Execute, and your take is $0.82 NET on just four cents spent.

And that’s a very juicy 2050%.

Like pulling a rabbit out of a hat…

[*Buy back the 55 CALL and sell the 55 PUT.]

A hearty congratulations (again) to subscriber Arjun, who jumped out at the close on Friday and caught the day’s lows (and apparently also had several pairs on).

…Don’t we feel every bit the proud father.

How Do You Top That!?

As mentioned, we’ve got a new light rail to financial freedom leaving every Monday and Thursday morning.  And today’s ticket’ll buy you a potential 4900% win.

If she moves like we want.

 

Right…

So here are the fundamentals of Dollar Tree stock – and remember this is a retailer, albeit in an inflationary environment with lots of cheap Chinese merchandise.

  • P/E is an expensive 28.14,
  • Dividend Yield is NIL,
  • Price to Book is too high at 4.73, and
  • The latest Q/Q earnings FELL by 7.10%.

But that didn’t stop the buyers, who filled the parking lots over the last few months and talked (incessantly) about how inflation is going to make DLTR grow to the sky!

Un-hunh…

The daily chart, please –

And ain’t that just a wonder.

G-d bless all you good Jews and Noahides.

With kind regards,

Hugh L. O’Haynew

 

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