Posted on November 7, 2022
You’re not going to believe this, but today’s trade takes advantage of some wild pricing to offer you a maximum take of $250.30 on NOTHING SPENT!
And it’s risk defined; so we’ve got a known downside.
But before we get there, we have one to close for a very respectable 367%.
Will do, Junior…
It’s all about our K trade, launched back on August 29th in a letter called Kellogg’s Diagnosed Lactose Intolerant; Stock Ulcerates, Suffers Gastric Event.
There, we urged you to sell the K December 16th 72.50/75 CALL spread for $1.05 and buy the K December 16th 72.50/70 PUT spread for $1.05. Zero premium was the result.
Well, the CALL spread can be repurchased for $0.65 (1.05/0.40) and the PUT spread sold for $1.35 (3.90/2.55).
Get it done and you NET $0.70 on nothing laid out.
Accounting for minimal commissions gives you a nice 367% win.
And that’s better than a bowl of cold porridge.
Congrats to our friend, Sunil, for going in big (again).
Flowers Foods (NYSE:FLO) is responsible for Wonder Bread, among the rest of its all-star line-up of baked goods.
And today it also boasts some wonderfully aromatic options prices, that could pay off in an extraordinarily carbohydrate-rich profit serving—if we’re right.
But let’s look at some fundamentals before we get to the trade.
It’s hard to imagine how the stock price is going to stay so hot-out-of-the-oven.
With the company set to report Q3 2022 financial results this Thursday (November 10th) after the close, we’re recommending a full-on defensive rush for shareholders.
By the way, we picked the Flower back in January of this year for a healthy win, when price was hovering just about exactly where it is now.
And now we’re pulling a repeat.
With kind regards,
Hugh L. O’Haynew