Posted on September 19, 2022
Going into the Day of Judgement, we can’t help ourselves.
The spirit of chesed has overtaken us, and we’re repenting of all our this-worldly desires.
By offering you – good, sweet Jew, and you, loyal Noahide – one full week to take advantage of our best yearly rates on A Jew and His Money and A Jew and His Gold.
It doesn’t get any better, brother.
Save your way to better trades and, ultimately, a fortune in winnings!
But the offer’s good for just one week.
When the shofar blasts on Rosh Hashana – when the apple meets the honey – it’s all over.
So sign on now, and start profiting.
Wealth accumulation was never this fun.
Do it with the Jews!
And keep the Holy One of Israel on your side.
Next Monday, September 26th, on Rosh Hashana, there will be no letter.
A Jew and His Gold will publish as per usual next Thursday.
Publication of A Jew and His Money will resume the following Monday, October 3rd.
Today’s trade takes on the misanthropes at Abbott Labs (NYSE:ABT), makers of Similac, the living mother substitute.
ABT has been pulling the wool over people’s eyes since 1888, piling up the profits (and the cadavers) from their headquarters in Chicago, Illinois as they peddle their broad ‘healthcare’ product line.
But not all is well in the den of these wicked mad scientists, and certainly not on the stock front.
As you’ll see below, the stock is already down some 28% from its all-time high back in December of last year.
And now it sits on the threshold of another meaningful dump.
But before we get to the chart, and our most excellent means of cashing in on the coming decline, consider the company’s fundamentals –
And that doesn’t bode well.
At the same time, regulators are warning that the company’s MitraClip heart valve device has been malfunctioning – exactly as a new competitor enters the market.
In short, we got problems in the lab, Igor.
Now look at the chart –
Technically, she looks as follows –
And it’s for all the foregoing that we’re now recommending the following –
A Jew and His Money recommends you consider selling the ABT November 18th 100/105 CALL spread* for a credit of $2.75 (7.15/4.40) and buying the ABT November 18th 110/105 PUT spread** for $3.20 (8.25/5.05). Total debit on the affair is $0.45.
Rationale: it’s a genuine bargain to find $4.55 in profits from an outlay of just $0.45. That’s for starters.
Next, it’s nice when the full winnings of the PUT spread are already in hand. That is, with price now at 104, we’ve bagged the long side of the trade before we even start.
All we need now is a decline below 100 to eliminate the debit (CALL) side of the bet – and we’ve won.
That amounts to a pullback of just 3.8%, and considering the technical set-up, it doesn’t appear such an onerous expectation.
Max loss is $5.45 (difference between the CALL strikes plus the initial debit).
Time is good, too. Sixty days seems an ample duration to get the job done.
With kind regards,
Hugh L. O’Haynew