Posted on April 23, 2019
Let’s jump right into this and announce that we’ve got some hefty profits in hand, and we’re taking them off the table.
Remember – on March 25th in Look in the Mirror, Bro, we issued the following recommendation –
A Jew and His Money recommends you consider selling the BSX January 17th 2020 40 CALL for $2.91 and buying the BSX January 17th 2020 45 CALL for $1.37, for a total credit of $1.54. With those funds, purchase the BSX January 17th 2020 32 PUT for $1.53. Total credit on the trade is $0.01.
Here’s how the chart looks today –
As you can see, we got the dive we expected, and though there may be more to come, we’re not taking any chances. With RSI (in green) dredging the oversold 20 line on a burst of selling (in black), we could easily see a quick bounce any day now.
It’s not worth waiting.
The numbers look as follows –
Buy back the 40 CALL for $1.72 and sell the 45 call for $0.67 for a debit of $1.05. Then sell the long 32 PUT for $1.81. Your total take is $0.77 on nothing laid out!
Accounting for minimum commissions gives you a gain of 413%!
Kinda like watching Pharoah drown in the sea…
With kind regards,
Hugh L. O’Haynew