Posted on July 19, 2021
Three to close before we get to today’s action.
Buckle up Henry!
We start with our UFPI initiative, launched on April 26th in a letter called We’re Loading Up Our Woodies On The Short Sale Side.
The order of the day was to sell the UFPI October 15th 90 CALL for $3.70 and buy the UFPI October 15th 65 PUT for $4.00. Total debit was $0.30.
The short CALL trades for $1.25 and the long PUT for $2.65.
Buy back the former and sell off the latter and you take home $1.40 on $0.30 spent.
That’s a NET take of 367% in under three months. Annualized (for all you math greats out there) makes for a very impressive 1467% return.
We’re also closing our CAT trade. The details of which can be found HERE.
In short, we’re currently in possession of a $5.95 credit and the September 17th 210 synthetic short.
The current price on the short 210 CALL is $8.00, while the 210 PUT is fetching $10.65.
Buy back the first and sell off the second, and you pocket an additional $2.65, bringing your NET haul on the affair to a fulsome $8.60 on $8.00 spent.
And that’s a one hundred and seven percent can of ravioli.
Finally, our GRWG pot trade, whose particulars you’ll find HERE.
The skinny on this one is we’re holding a debit of $0.35 and the October 15th synthetic short at 40.
So, with GRWG now trading at $38.08, the short CALL goes for $4.65 while the long PUT delivers $6.30.
Buy back the CALL and sell the PUT, and you pull in $1.30 NET on an original outlay of $9.50.
That makes for a 13.6% return.
For those who feel there’s more downside here, we’d concur.
Support doesn’t arrive until the $33 range (which could add another five points to the winnings).
We’d just hate to see a bounce here that stalls our trip to the bank indeterminately.
All right, we’ve arrived at today’s trade.
And it’s centered on a Dublin-based auto-parts manufacturer called Aptiv PLC (NYSE:APTV), for whom both Matty and I worked night shift before our conversions.
But that’s for another time.
APTV, like everything Irish, is filled with exaggeration.
Consider the fundamentals –
With kind regards,
Hugh L. O’Haynew