Today – 284% PROFIT! And… Are You a Party to the Destruction of Wall Street? (EXPE, WIX)

Because if you are, Facebook and Twitter gonna gitcha!

We at A Jew and His Money, on the other hand, will aid and abet any and all efforts to stuff oneself silly at the expense of haughty hedge fund managers and corporate banking loudmouths with whom we share (almost) nothing in common.

And with that in mind – we trade!

But first, we’ve got one to close for a full plate of profits.

It’s our EXPE initiative, originally launched on November 23^rd, the details of which can be found here.

In short, we’re holding the EXPE March 19^th 130 synthetic short, along with a debit of $1.56 on the side.

And today, the long 130 PUT goes for $14.35 and the short 130 CALL trades at $8.35.

Sell the former and buy back the latter and you walk with a net $4.44 on $1.56 spent.

And that’s a very hefty 284%.

We’d call that a brilliant day at bat.

Now, Let’s Round the Bases

Today’s action is like this –

We’re directing beanballs at WIX (NASDAQ:WIX) and looking for a knockout.

What’s WIX?

WIX is the free website company that’s never earned a nickel, but whose stock has done nothing but rise since her IPO in 2013.

Consider the fundamentals –  

• WIX has no P/E (on account of negative earnings), but analysts are happy to offer a forward P/E of 3633.09 (!) to justify the current price.  Hmm…
• Price to (comic) Book is a laugh-out-loud 15.17,
• There’s no yield, but
• There is a sky-high Debt to Equity ratio of 3.08 (gasp!),
• Earnings this year (this Wuhan Batflu year, when all things internet are soaring) are down 120%, and
• Quarter over quarter, they’re down 200.70%.
• And, as mentioned above, in the eight years since the company got its listing, it has yet to post a quarter with positive earnings.

YOU GOTTA BE KIDDING ME!

Which brings us to the charts.

Have a look here –

Technically, we’re looking at –

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew