Posted on July 25, 2022
The July options expiry saw our HRB trade bleed $2.00, and that hasn’t sat well with us.
That said, the good Lord works in strange and wondrous ways – and He’s brought us a set-up today using the self-same HRB that’s looks far more lucrative than our first go-round, and will handily cover for the loss – if we’re right.
It holds a potential take of 2567%, and we’ve made a point of structuring the trade to account for both initial costs and potential back-end gains – with the risk fully defined, as always – that we think you’ll be overjoyed to see.
We’ll get there in a moment. But first, we have two other initiatives that require your attention – both for the good!
The first involves our ADM trade, which you’ll remember we already closed HERE.
That’s right, Mr. evil communist mainland-China propaganda character.
Well, sort of…
We left one short 90 CALL with a September 16th expiry open, because we figured the stock had sunk so low that it wasn’t in jeopardy.
But today, with the option trading for just $0.20, we’re invoking ‘prudence is the better part of valor’, and buying it back.
Get it done, and you lower your NET profit on the trade from $1.90 to $1.70 (and your percentage gain from 1900% to 1700%).
We’ve got another fine profit on the table from our TLT initiative, whose particulars you can find HERE.
In brief, we’re holding the September 16th 115 synthetic long and a debit of $1.12.
The short can now be closed for a gain of $3.35 (sell the CALL for $5.45 and buy back the PUT for $2.10) and you come away with a NET gain of $2.23 on just $0.12 originally laid out.
And that’s a spanking new Edsel in your driveway, Roy.
Call it –
And now to our tax collector friends at H&R Block (NYS:HRB).
As mentioned above, at July expiry we were in the red for a full $2.00 on our short CALL spread, but today we’re re-engaging the enemy in the mid-day sun with far greater fire-power.
Let’s run through the HRB fundamentals once again, because it’s hard to imagine a stock can continue drifting higher with figures such as these –
Next earnings are set to be released August 9th, and frankly, we’re looking forward to them.
This sort of chicanery needs a strong response.
Guillotines, slipknots and the like.
May the Holy One bless us with the insight and bearings to make it spin right.
With kind regards,
Hugh L. O’Haynew