December OpEx is Upon Us—and We’re Cashing in Nicely on a Few… (TR, AJRD, NWL, BJ, SU, GPC, PCG, DIA/QQQ, PPC, TPOR/DUSL, FCN)

There’s no time to lose!

We start with our TR initiative from November 24^th.

The letter was called Tasty, Yes.  But OH! My Dentures, and it recommended you short sell one lot of TR for $43.29, buy a protective March 17^th 45 CALL for $3.00 and 10 TR December 16th 40 PUTs for $0.45 each.  Total credit on the trade was $35.79.

And now?

TR is heading lower, but not fast enough.

The stock closed last night at $43.49.

On any intraday weakness or toward the close, cash in your PUTs for whatever you can get—and who knows—maybe we’ll get a surprise!

We still have overhead protection in place for three months, so leave her be and we’ll take profits once we break below our $35.79 breakeven.

NEXT!

Our AJRD trade was dispatched on November 14^th in a missive entitled Missile Maker on the Launch Pad, and ever since it has vectored in the wrong direction.

The trade had us sell the AJRD December 16^th 45/50 CALL spread for $3.00 buy 4 AJRD December 16^th 45 PUTs for $0.80 each.  Total debit was $0.20.

Today, our CALL spread is in-the-money for the full amount, and we’re forced to act.

Like this—

Set the AJRD February 17^th 50 synthetic short* for a credit of $4.05 (5.60/1.55).

That reduces our debit to $1.15 and sets us up to profit from any downside.

[*Sell the CALL and buy the PUT.]

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On November 3^rd Jews! Noahides! Lend Me Your Ears… arrived in your inbox, urging you to sell the NWL December 16^th 14/12 PUT spread for a credit of $1.05 and buy three (3) NWL December 16^th 14 CALLs for $0.35 each.  Net zero premium was the result.

Today, NWL is trading at $13.20 and our PUT spread is in-the-money by $0.80.

Should we get intraday strength in the stock, offload your CALLs immediately, or, failing that, as the close approaches set the NWL March 17^th 14 synthetic long* for a credit of $0.75 (1.55/0.80).

That gives us another three months to profit from the stock’s upside and reduces our debit to just $0.05.

[*Sell the PUT and buy the CALL.]

Details of our BJ/VOD trade can be accessed HERE.

In brief, we’re holding a credit of $1.11 and one BJ 70/75 CALL spread expiring this eve.

With BJ opening this morning at $68.66 and S&P futures fixing to move lower, we say leave her be.

We’ll very likely walk with the full $1.11 on just two cents spent.

And that’s 5550%.

Good on ya if you went in big.

MASSIVE PROFIT!

The Pile on Oil Trade delivered our SU initiative on September 29^th.

There, we urged you to sell the SU December 16^th 29/32 CALL spread for $1.05 and buy the SU December 16^th 29/27 PUT spread for $1.10.  Total debit was $0.05.

Today, SU opens at $30.55, meaning we’re on the hook for $1.55.

ACTION: on any intraday weakness or near the close, close the short CALL and long PUT and set the SU June 16^th 29 synthetic PUT* for a credit of $1.40 (4.30/2.90).

That reduces our debit to $0.20 and allows us to participate in any decline.

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Auto Wreck Scatters Car Parts Everyhere was our September 9^th trade featuring GPC.

There, we recommended you sell the GPC December 16^th 150/155 CALL spread for $2.20 and buy the GPC December 16^th 150/145 PUT spread for $2.60.  Total debit was $0.40.

And now…?

We’re in the black for the full five points on the short CALL spread.

So…

With GPC turning over and all signs pointing to a coming free-fall, we’re recommending you set the GPC January 20^th 170 synthetic short* for a credit of $7.55 (9.90/2.35).

That will flip our debit to a credit of $2.15 and allow us to participate fully in the coming downside.

[*Sell the CALL and buy the PUT.]

Our September 15^th communiqué was called Stock Shock… and employed PCG shares as underlying.

We sold the PCG December 16^th 13/14 CALL spread for $0.46 and bought the PCG December 16^th 14/13 PUT spread for $0.55.  Total debit was $0.09.

Our short CALL spread is now in-the-money for the full dollar, so we have to act.

Thus—

Set the PCG March 17^th 15 synthetic short* for a credit of $1.27 (1.88/0.61).

That converts our debit to a credit of $0.18 and gives us full downside exposure.

[*Sell the CALL and buy the PUT.]

Gift Horse

On August 8^th Take a Long/Short Ride on The Indexes rang your doorbell, urging you to sell the DIA December 16^th 335/340 CALL spread for $2.20 and buy the QQQ December 16^th 335/340 CALL spread for $2.36.  Total debit on the trade was $0.16.

As of the close tonight, it appears both spreads will close OTM and we’ll lose our original $0.16.

Not happy, but so be it.

Beats a kick in the teeth by a Clydesdale.

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Details of our PPC trade can be found HERE.

All told, we’re holding a credit of $0.05 and an open, short 35 CALL expiring at the close.

With PPC at $23.44, we see we should have been more aggressive here.  But such is life.

We exit with a nickel NET on an initial debit of $0.10.

Nominally 50%, but a milquetoast win.

Particulars on our TPOR/DUSL trade can be sourced HERE.

Bottom line is we’re holding a credit of $4.22 and two long CALLs that will expire OTM this eve (TPOR 39 and DUSL 39).

That means we bank $4.22 NET on an initial outlay of BUPKUS.

That’s 2713%.

And that’s nice.

And Finally…

Our FCN trade, the details of which can be found HERE.

In brief, we’re holding the 125 synthetic short that expires tonight and a debit of $3.00.

Therefore—

We’re buying back our short CALL on weakness or before the close, and setting the FCN June 16^th 125 synthetic short* for a credit of $35.20 (38.70/5.50).

That flips our debit to a credit of roughly $1.20 (more details after the close) and gives us half a year to participate in FCN’s decline.

[*Sell the CALL and buy the PUT.]

The evil ones may plot, but it will not fall nigh thee.

Eschatologically yours,

Alan B. Harvard

 

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