JUNE Options Expiry, And We’re Calling a Dude a Dude (IYT, DIA, BLMN, RRC, NVO, SCCO, HYG, PCG, ACM, POST, FCN)

We’ve got a number of fixes to make, so pull out your pencils and start scribbling.

First up is our April 27^th dispatch featuring IYT that was called Gender-Fluid, Non-Binary Fight with the Trannies.  The trade urged you to sell the IYT June 16^th 220/225 CALL spread for $1.90 and buy the IYT June 16^th 215/210 PUT spread for the same $1.90.  Zero Premium was the result.

With the CALL spread poised to close in-the-money this eve, we’re forced to act.

Like this—

Set the IYT September 15^th synthetic short* using the 240 strike.  That will reduce the impending $5.00 loss to just $0.70 and set us on our way to profit as the index falls.

[*Sell the CALL and buy the PUT.]

N – E – X – T !!!

Straight Shot Bet on the Dow Industrials was our letter of March 22^nd.

It recommended you sell the DIA June 16^th 336/341 CALL spread for $1.10 and buy the DIA June 16^th 305/300 PUT spread for $1.10.  Net Zero premium was the outcome.

With DIA now at 344, we’ll be out $5.00 at the end of the day.

So…

We’re setting the DIA December 15^th 340 synthetic short* for a credit of $8.20 (18.35/10.15).  That will reverse our debit to a credit of $3.20 and set us up for winnings on the downside.

[*Sell the CALL and buy the PUT.]

March 1^st saw Dining on a Dodo arrive in your inbox with a trade on BLMN.  Essentially, we sold the BLMN June 16^th 25/27.50 CALL spread for $0.95 and bought the BLMN June 16^th 25/22.50 PUT spread for $0.95.  Zero Premium was the result.

BLMN closed last night at $26.46, so we’re recommending you buy back the short CALL for $1.88 and set the BLMN October 20^th 25 synthetic short* for a credit of $1.35 (3.00/1.65).

That will reduce our debit to $0.53 and set us up for downside profits.

[*Sell the CALL and buy the PUT.]

SUBSCRIBE ME NOW, ALAN!

Details on our RRC initiative can be found HERE.

In brief, we’re holding a debit of $0.26 and the 24 strike synthetic short expiring tonight.

Again, our short CALL is ITM, so we’re buying it back at the open for $3.90 and selling the RRC October 20^th 24 synthetic short* for $3.80 (5.20/1.40).

That brings our debit to $0.36, and gives us another four months to participate in the upcoming decline.

[*Sell the CALL and buy the PUT.]

Movin’ On!

We engaged NVO on June 16^th in a communique entitled Beware the New Vorld Order.  The call was to sell the NVO June 16^th 145/150 CALL spread for $1.50 and buy the NVO June 16^th 130/125 PUT spread for $1.60, resulting in a debit of $0.10.

ACTION: we have to offset the $5.00 loss that will likely come at day’s end, and we’re doing it like this—

Set the NVO October 20^th 155 synthetic short* for a credit of $9.50 (15.50/6.00).

That will flip our debit to a credit of $4.40 and give us until October to enjoy the coming downside.

[*Sell the CALL and buy the PUT.]

We traded SCCO on January 19^th in a missive called Copper on Deck.  There, we urged you to sell the SCCO June 16^th 80/85 CALL spread for $1.20 and buy the SCCO June 16^th 65/60 PUT spread for $1.50.  Total debit on the affair was $0.30.

And now…?

It appears all options will expire this evening worthless and we’ll be out our initial $0.30.

Barring something unforeseen…

SHOW ME YOUR TRACK RECORD!

Our HYG trade was one of our few bullish bets in the last half century year.  It arrived January 19^th in a package labeled Found in the Junk Heap: One Helluva Pearl.  The idea was to buy the HYG June 16^th 79/81 CALL spread for a debit of $0.49 and sell the HYG June 16^th 74/72 PUT spread for $0.47, for a debit of $0.02.

With HYG closing last night at $75.12 it appears that here, too, we’ll see all options expire OTM.

Call it a loss of $0.02.

GIDDYUP!

The particulars on our PCG trade can be had HERE.

To sum, we’re holding a debit of $0.08 and the 15 strike synthetic short expiring tonight.

With PCG closing last night at $17.25, we’re likely going to be out a small sum at the close.

So…

We’re buying back the short CALL for $2.29 and setting the PCG October 20^th 15 synthetic short* for a credit of $2.30 (2.63/0.33).

That moves our existing debit to $0.07 and gives us another four months of life.

[*Sell the CALL and buy the PUT.]

Nearly the same story with our ACM trade, whose details are HERE.

We’ve got a debit of $0.17 and are holding tonight’s 75 synthetic short.

The short CALL here will likely end ITM, so we’re forced to buy it back for $11.60 and set the ACM September 15^th 75 synthetic short* for a credit of $11.95 (13.40/1.45).

That will put us in a credit position of $0.18 and set us up for gains on the downside.

[*Sell the CALL and buy the PUT.]

GIMME 30 DAYS FREE!

Penultimate issue of the day is our POST bet, that sees us holding a credit of $0.75 and the 80 synthetic short expiring tonight.

Again, our short CALL will end up in-the-money, so we’re advising you to buy it back for $7.90 and set the POST October 20^th 80 synthetic short* for a credit of $8.50 (10.30/1.80).

That gives us a credit of $1.35 and another four months to win.

[*Sell the CALL and buy the PUT.]

Last of All…

Finally, details of our FCN trade can be accessed HERE.

We’re in possession of tonight’s 125 synthetic short and a debit of $2.63.

As above, our short CALL will find itself ITM at the close, so we’re buying it back for $71.00 and selling two (2) FCN December 15^th 160 CALLs for $40.40 each.

That flips the debit to a credit of $7.17 and keeps us in play for another half year.

…בראשית ברא אלוקים את השמים ואת הארץ

Good Jews and Noahides, hang on tight!

The Final Redemption is at hand.

Eschatologically yours,

Alan B. Harvard

Follow @HughLOHaynew