Posted on September 28, 2022
Shana Tova, Good Jews and Noahides!
We’ve got a bevy of good news for you…
But first this:
The response to our Annual Subscription offer was so strong, we’re extending the buy deadline until Yom Kippur.
That’s next Tuesday evening, friends – and not a moment longer.
And access is to them is almost free.
The current downturn is an extraordinary opportunity for quick turnarounds and fat takes.
Offer’s good until Yom Kippur.
Once the fasting begins – it’s all over.
May the Holy One of Israel be with you.
And now for the profit portion of our show…
We start with our ATI initiative, whose details can be found HERE.
In brief, we’re short one lot of ATI shares with a breakeven at $31.26.
We’re also holding a long October 21st 35 CALL and a short October 21st 27.50 PUT.
With the stock trading at $28.23, the long CALL is worth $0.05 and the short PUT trades for $1.35.
Buy back the stock and the PUT and sell the CALL, and you exit with $1.73 NET on nothing laid out.
Adjusted for minimal commissions makes for a take of 1053%.
Let’s turn now to our CHKP initiative, launched September 9th in a letter called Internet Security is for Losers.
There, we urged you to sell the CHKP October 21st 115/120 CALL spread for $2.20 and buy the CHKP October 21st 120/115 PUT spread for $2.50. Total debit was $0.30.
And now, with CHKP trading at $111.12, it’s time to close.
The CALL spread can be bought back for $1.70 (2.05/0.35) while the PUT spread can be closed for $2.70 (8.30/5.60).
Get it done and you exit with a dollar on $0.30 spent.
That’s a 233% take in less than three weeks.
Ain’t she sweet…
On August 24th, Henry Carries His Teeth Home in a Plastic Bag! arrived at your inbox, recommending you sell the HSIC October 21st 70/75 CALL spread for $2.80, and buy two (2) HSIC October 21st 70 PUTs for $1.55 each. Total debit on the affair was $0.30.
Today, HSIC will open at $66.12 and the option breakdown’s like this –
The CALL spread can be repurchased for $0.80 (0.90/0.10) while the PUTs can be offloaded for $3.70 each.
Do it, and you step away with a spit shine on your boots like Old Man Kennedy (yimach shemo v’zichro).
And $6.30 NET.
And that’s a freewheeling 2100% in a freakin’ month.
How about ABBOTT?
Our ABT trade was dispatched on September 19th in a missive entitled Mixing the Kool-Aid, and it implored you to sell the ABT November 18th 100/105 CALL spread for $2.75 and buy the ABT November 18th 110/105 PUT spread for $3.20. Total debit was $0.45.
The CALL spread can be bought back for $2.10 (4.10/2.00) and the PUT spread sold for $3.65 (12.55/8.90).
Do it, and you NET $1.10 on a $0.45 outlay.
And that’s a very healthy 244%.
Our DBC bet came off like a charm.
The August 4th communiqué was called A Broad Commodity Punch in the Nose, and it featured the following –
The sale of the DBC October 21st 25/27 CALL spread for $0.70, and purchase of the DBC October 21st 27 PUT for $2.40. Total debit was $1.70.
Today, the CALL spread can be re-bought for $0.35 (0.40/0.05) and the PUT sold for $3.55.
We say, do it.
When the dust settles, your take is $1.50 NET on $1.70 spent.
And that’s a mighty fine 88%.
We’re coming into our COOP trade with a $2.20 credit and holding the October 21st 40 synthetic short.
And because of the stock’s recent price action, we’re recommending you close this one down.
The long PUT will fetch you $1.80 while the short CALL will cost $2.30.
Sell the former and buy back the latter and you leave the venture with $1.70 NET on $3.00 spent.
And that’s a return of 57%.
There will be a lot more winnings to come, friends.
We’re positioned strongly to capitalize on the current weakness.
And get your subscriptions!
Alan B. Harvard