Posted on November 17, 2023
Five trades require your attention going into the weekend.
And here they are—
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%.
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.
We’re acting thus—
Buy back the short CALL for $20.20 and reset the May 17th 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.
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 17th 35 CALLs for $11.10 each. That will expand our credit to $5.90 and give us another half year to fight.
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 19th 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.
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.
Repurchase the CALLs for $71.20 and resell two (2) June 21st 60 CALLs for $70.50 each.
That gives us a credit of $12.59 going forward and another seven months to make good.
Alan B. Harvard