Posted on September 17, 2020
Moving into the New Year and the G-d of the Jews, the Creator of Heaven and Earth, is good, does good, and demands that we all do more to be good.
We’ve got trades to close and money to be made before the curtain falls on 5780.
And we start with EBAY.
The trade was opened on August 30th and recommended you sell the October 16th 50/55 CALL spread for $2.66 and buy two (2) EBAY October 16th 50 PUTs for $1.31 each. Total credit was $0.04.
Today, the 50/55 CALL spread can be closed for a debit of $1.82 (-$2.39/+$0.57), while the long PUTs are worth $1.80 each. Sell them both and you exit with $1.82 on nothing spent.
Our August 3rd MED/VDC pairing has to remain alive in order to profit from the eventual decline that we expect from MED.
That means we have to roll out our long MED CALL, which is worth $6.10 today.
Sell it, and use the funds to purchase the October 16th 185 CALL for $6.50.
We thereby add another $0.40 to our initial debit, for a total of $1.47, and buy ourselves another month of gimme.
Moving on, we arrive at our WKHS initiative, launched July 12th, that recommended you sell the WKHS October 16th 27 CALL for $2.20 and purchase the WKHS October 16th 9 PUT for $2.15. Total credit was $0.05.
Just to be sure, we also recommended a STOP buy order for the stock at $26.
And as of yesterday, you’re bought in good.
We now need to set a STOP sell for the shares at $26 (they’re currently at $26.82).
That will return our trade to its original parameters.
Number four on the block today is our USD/KLAC pairing from August 5th.
This is a trade we also have to keep alive until USD has a chance to trend (or KLAC to climb).
That means we have to buy back our KLAC 200 PUT for $19.70 and sell the KLAC October 30th 180 straddle for $20.60. ($11.20/$9.40).
That will add an additional $0.90 to our initial credit of $1.10, creating an adjusted cost base of +$2.00 on the trade.
Finally, our VALE initiative, originally launched on December 29th (all the details of which can be found here) needs to be rolled.
Our short 12 PUT that expires tomorrow sells for $0.53. Buy it back and sell the October 16th 12 PUT for $0.98, and you bring the trade balance up to a credit of $0.42.
We’ll be back tomorrow with news on the following –
FIZZ, APPS, CLX, OKTA, SAM, SAIA and WING
Alan B. Harvard