NOVEMBER OpEx. Pay Attention! (XPO, BRBR, ELF, AEO, BMCH)

Five trades require your attention going into the weekend.

And here they are—

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We start with our AEO initiative, whose details can be found HERE:

In brief, we’re long the shares with a short CALL at 14 and a breakeven of $12.80.

Tonight, the shares will be called away, and we’ll exit with $1.20.

That’s a profit of 9.3%.

N-E-X-T!

Next up is XPO, whose particulars can be gotten HERE.

To sum, we’ve got a debit of $2.30 and are holding the 67.50 synthetic short expiring tonight.

So…

We’re acting thus—

Buy back the short CALL for $20.20 and reset the May 17^th 67.50 synthetic short* for a credit of $21.30 (23/2.70).

That reduces the debit to $1.20 and gives us six months to profit from the downside.

[*Sell the CALL and buy the PUT.]

Our BRBR trade sees us with a credit of $5.50 and two short 35 CALLs expiring this eve.

ACTION: buy back the CALLs for $10.90 each and resell two (2) May 17^th 35 CALLs for $11.10 each.  That will expand our credit to $5.90 and give us another half year to fight.

SUBSCRIBE NOW!

NOT YET… GIVE ME A FREE MONTH FIRST!

We’re in possession of a $1.15 credit and the 85 synthetic short expiring tonight on our ELF trade.

And that requires the following fix: buy back the short CALL for $28.50 and reset the April 19^th 85 synthetic short* for $28.20 (32.60/4.40).

That reduces our credit to $0.85, but offers another five months to profit from the downside.

[*Sell the CALL and buy the PUT.]

Finally, our BLDR trade details can be found HERE:

We’ve got a sizeable $13.99 credit and two, short 55 CALLs expiring at the close.

So…

Repurchase the CALLs for $71.20 and resell two (2) June 21^st 60 CALLs for $70.50 each.

That gives us a credit of $12.59 going forward and another seven months to make good.

The G-d of Israel is not happy.

Let’s change our ways… And pray He has mercy.

Eschatologically yours,

Alan B. Harvard

Follow @HughLOHaynew