Posted on September 15, 2023
We’ve got ten trades expiring this eve, of which four will likely end up in no man’s land, without a gain or a loss, and six that could require your attention.
We start with Chemically Speaking, our trade on DOW that arrived at your person on June 28th. The recommendation was to sell the DOW September 15th 55/60 CALL spread for $0.91 and buy the September 15th DOW 52.50/50 PUT spread for $0.98. Total debit was $0.07.
Today, it appears we may fall between the cracks.
Last night the stock closed at $54.04, so we’re recommending you take NO action whatsoever.
We may lose our original seven cents, but so be it.
Our NVDA trade likewise looks like it may end up in the nether parts.
The letter was sent called Takin’ On The Big Boys (June 18th), and it urged you to sell the NVDA September 15th 465/470 CALL spread for $1.10 and buy the NVDA September 15th 335/330 PUT spread for $1.15. Total debit was $0.05.
As of last night’s close, NVDA was trading at $455.81, so we feel safe leaving it be.
The result will almost certainly be the loss of our original nickel.
So it goes…
Kinder Morgan Taken Out on a Stretcher was our June 8th dispatch, advising you sell the KMI September 15th 18 CALL for $0.27 and buy the KMI September 15th 17/16 PUT spread for $0.33. Full debit on the affair was $0.06.
Here again, we see a no-man’s-land expiry.
Leave it be and take your lumps—or profits!
The stock ended the day yesterday at $17.31.
We’ll see what happens.
Details of our IYT initiative can be found HERE.
In brief, we’re holding a debit of $0.70 and the 240 strike synthetic short expiring this eve.
This could be close.
IYT closed last eve at $243.56, a development that puts our short CALL in-the-money.
Our initial hunch was to leave it be and hope for a decline that would give us a tidy little profit.
But now we’re not so sanguine.
ACTION: buy back the short CALL for $4.40 and set the October 20th 235 synthetic short* for a credit of $8.20 (10.30/2.10).
That flips our debit to a credit of $3.10 and opens up the downside for profits.
Don’t Trust Anyone With Your Data was our June 5th communique featuring VRT.
The trade asked you to sell the VRT September 15th 17.50/20 CALL spread for $1.20 and buy the VRT September 15th 20/17.50 PUT spread for $1.25. Total debit was $0.05.
So, it’s like this—VRT closed last eve at $38.44 and we’re going to be liable for the full CALL spread value, $2.50.
So, we’re acting thus—
We’re setting the VRT December 15th 35 synthetic short* for a credit of $3.75 (6.00/2.25).
That flips our debit to a credit of $1.20 and permits us full participation in the coming downside.
Our LLY trade details are available HERE.
To sum, we’re in possession of tonight’s 430 strike synthetic short and a credit of $2.85.
But with the short CALL in-the-money, we’re in need of pre-emptive action to avoid a loss.
We’re buying back the CALL and selling the January 440 CALL for $163.20.
That moves our credit to $3.55 and gives us another four months to see a profit.
The particulars of our TJX trade can be accessed HERE.
As of today, we’re sitting on a small credit of $0.63 and the 82.50 synthetic short expiring tonight.
But with TJX closing last eve at $93.59, we’re forced to act.
Buy back the short CALL for $11.15 and set the TJX January 82.50 strike synthetic short* for a credit of $12.24 (13.10/0.86).
That puts us up $1.72 on the trade and gives us four more months to cash in on the downside.
General Electric Chair was our February 8th missive that beseeched and implored you to sell the GE September 15th 90/95 CALL spread for $1.60 and buy the GE September 15th 80/75 PUT spread for $1.85. Total debit on the bet was $0.25.
GE is now trading for $115.65, so our CALL spread is underwater.
ACTION: set the December 15th 110 synthetic short* for a credit of $6.90 (10.15/3.25).
That puts us in a credit position of $1.65 and stretches our profit horizon for another three months.
Our ACM trade, whose details can be found HERE, will also require some tweaking.
We have a credit of $0.18 and the 75 strike synthetic short that expires at the close.
The short CALL will be ITM, so we’re precluding a loss by acting as follows—
Buy back the short CALL for $9.40 and set the January 72.50 synthetic short* for a credit of $12.15 (13.20/1.05).
That pushes our credit to $1.93 and offers us another four months to win.
Finally, you can call up the details on our VMI wager HERE.
In brief, we’ve got a large $10.18 credit in hand and are short the 195 CALL that dies this eve.
That CALL will end up in-the-money, so we’re buying it back for $48.05 and selling the March 15th 200 CALL for $48.90.
That pushes our credit to $11.03 and gives us another half year to cash in.
Alan B. Harvard