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Three Fat Winners: 367%, 107% and 13.6% – and A Trip To Sunny Dublin! (APTV, UFPI, CAT, GRWG)

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.

And now…?

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.

CAT Closing

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.

And…?

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.

What a high!

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.

Do as you see fit, brother Louie!

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 –

  • P/E is rebellious 90.70,
  • Dividend Yield is Paddy McZilch,
  • Price to Book comes in at a leprechaun-like 5.01, and
  • Latest Quarter/Quarter earnings declined by 83.30%.

Now, Sister Mary Margaret,  have a look at the chart –

Elokei Yisrael! Tishpot et HaOlam!

With kind regards,

Hugh L. O’Haynew

 

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