בס״ד

Thousands in Winnings on Short Gold and Pizza… AND Foxy Shock Absorbers (FOXF, GLD, DPZ/SPY)

Posted on March 1, 2021

Two to close, friends, before we get to our trade for the week.

First up is our GLD short sale whose details can be found here.

Bottom line is we sold at an adjusted $168.55 and GLD closed last at $161.81.

Buy the shares back now and you step out with a fat $6.74.

And that’s all right.

Next up was our DPZ/SPY pairing that arrived on February 4th in Domino’s Falling: Pizza-Maker Delivers Glob of Stale Dough.  There, we urged you to sell the SPY March 19th 375/385 CALL spread for $6.63 and purchase the DPZ March 19th 380/350 PUT spread for $14.40.  Total debit on the trade was $8.23.

And today, we’re heavy on the win side.

The short SPY CALL spread can be repurchased for $6.46 (11.84/5.38), while the long DPZ PUT spread will fetch you $20.70 (32.30/11.60).

That leaves you a net take on the trade of $6.01.

Call it a wallet-fattening 73% in under a month!

That calls for a sandwich!

Now, on to this week’s wham-o offering.

We’re trading the shock-absorber experts today, Fox Factory Holding Corp. (NASDAQ:FOXF), whose shares are priced for a monopolistic takeover over the global suspension market.

That is, they’re a tad stuffed at this point.

Consider

  • The earnings multiple on the stock is an overwhelming 63.42,
  • Price to Book is 7.38, and
  • There’s no dividend.

Y’a buyer?

The technicals also paint a picture of troubled times a’coming.

Have a look at the daily –

Maximum gain is unlimited.

Breakeven for the trade is $123.70 (2.7% below current levels).

With kind regards,

Hugh L. O’Haynew

 

Leave a Reply

Your email address will not be published. Required fields are marked *