TWO CLOSING: 5400% & 1533%… and Jacob’s Ladder Breaks (J, ISRG, EXP, WPM)

Posted on August 21, 2023

We have a tremendous trade for you today,

with a potential 4900% upside on Jacobs Solutions.

But first, we’re acting on several open trades.


We start with our ISRG venture, whose details can be found HERE.

In short, we’re holding a credit of $8.90 and one, short October 325 CALL.


That 325 CALL can now be repurchased for $3.40.

Get it done and you score $5.40 NET on a dime laid out.

And that’s 5400%!


Next, we turn to our July 26th initiative, featuring EXP.

The letter was called Fly Like an Eagle…Til the Hunter Takes His Aim, and it urged you to sell the EXP October 20th 200/210 CALL spread for $2.45 and buy the EXP October 20th 190/185 PUT spread for $2.40.  Total credit was $0.05.

Today, we’re leaving the short CALL be and selling the PUT spread for a handsome $2.40 (15.10/12.70).

We see little chance of the stock climbing 25 points in the near term.  Most likely we’ll buy the CALL back on the cheap in short order.

And, of course, we’ll keep you posted.

In the meantime, if all remains as is, we’ll step away with $2.45 NET on nothing spent.

Adjusted for minimal commissions gives us 1533%!

Crossing Over to Gold

On February 20th we penned Taking a Tactical Contrarian Position on the Precious Metals.  The trade called for the sale of the WPM September 15th 46/50 CALL spread for $1.00 and purchase of the IAU October 20th 35/32 PUT spread for $1.05.  Total debit was $0.05.

Today, in the spirit of continuing tactical shenanigans, we’re buying back the WPM spread for $0.15 (0.20/0.05).

That brings our debit up to $0.20 total and leaves the PUT spread open to full downside profits.

May they come in abundance!

And now to today’s trade…

Jacobs Solutions Inc. (NYSE:J) is one of these government contractors that allows the state apparatus to control its citizens in a tyrannical, but loving fashion.

Essentially, they’ll build whatever they’re asked to, and damned be the souls who are crushed in the process.

There’s a lot of that going on these days, so the company’s shares have been climbing nicely, as the chart below demonstrates.

And yet…

We believe those shares are now making a turn.

Consider the fundamentals—

  • P/E is 23.00 (with analysts expecting a contraction to just 15.89 a year from now).
  • Dividend Yield is an airy 0.78%.
  • P/B is 2.59, and…
  • Despite the wicked pop we saw when earnings were delivered on August 8th, EPS FELL by 15.30% Q/Q.

So where does that leave us?

Have a look at the chart—


The G-d of Abraham, Isaac and Jacob will decide!

With kind regards,

Hugh L. O’Haynew


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