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TRADE BULLETIN: April Options Expiry – The Full Roundup (FOXF, SJM, VALE, GRWG, BG, APPS, SBSW, SHOP)

Posted on April 16, 2021

Lots to cover, and no time to lose.

We start with our FOXF initiative, which graced your inbox in the morning hours of March 1st.  The communiqué was entitled Foxy Shock Absorbers, and it called on you to set the FOXF April 16th 125 synthetic short for a $1.30 debit.

Today, the short 125 CALL is in-the-money and has to be repurchased.  Wait for the close (or on intraday weakness), and buy it back for roughly $14.

At the same time set the FOXF September 17th 125 synthetic short (sell the Call and buy the PUT) for a credit of $10.10 (22.00/10.90).

That reduces or debit to $5.20 and leaves the downside open to profits.

RIGHT!  Next!

Our SJM trade, the details of which are available HERE, sees us holding the April 16th 105 PUT, along with a debit of $2.34.

Here, too, there’s value in setting the October 15th SJM 125 synthetic short for a credit of $3.90 (10.90/7.00).  We thus allow ourselves to profit on the downside and, at the same time, flip our debit to a credit of $1.56.

Our January 21st directive was entitled VALE Don’t Get No Respect, and it urged you to sell the VALE April 16th 21 CALL for $0.50 and buy the VALE April 16th 14 PUT for $0.60.  Total debit on the trade was $0.10.

It appears both options will expire OTM worthless tonight, leaving us with the loss of our initial debit, a dime.

Keep ‘em coming!

Sell! Or Get Off the Pot! was the name of our GRWG cannabis trade from the 28th of December.  The recommendation was to buy the GRWG April 16th 50/35 PUT spread for $9.50.

And now?

The long 50 PUT is in the money by a little over $3.00, but that’s not enough.So, we’re urging you to set the October 15th synthetic short at 40 for a credit of $6.25 (13.30/7.05).

That recovers nearly all of our original debit and allows us to participate in any downside through October.  Final numbers on Monday.

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The details of our BG trade can be accessed HERE.  In short, we have an open 57.50 synthetic short expiring this evening along with a debit of $4.35.

Our short CALL will therefore be in-the-money.

At the close (or during a bout of intraday weakness), buy it back for roughly $23 and sell two (2) BG July 16th 60 PUTs for $18.90 each.  That flips our debit to a credit of roughly $10.00.

Final tallies on Monday.

Our APPS venture requires attention.  As documented HERE, we’re now holding the April 16th 55 synthetic short with a credit of $0.65.

Here, too, our short CALL is ITM.  At the close (or during a period of weakness), buy it back for roughly $23.  Then sell two (2) June 18th 70 CALLs for $14.90 each.

That will expand our credit to approximately $7.50.

Full details on Monday.

Moving right along…

SBSW also needs a fix.  The details of the trade are as follows – we’re holding the April 16th 12.50 synthetic short alongside a debit of $0.10.

Buy back the short CALL at the close for approximately $7.50 and sell two (2) January 21st 17.50 CALLs for $5.10 each.

That puts us in a net credit position of roughly $3.00 until expiry.

And Finally –

Our SHOP trade, the details of which can be found HERE, sees us holding three (3) short April 16th 840 CALLs and holding a nice credit of $14.40.

As of tonight’s expiry, we’ll have to buy those back (at or near the close) for roughly $360 each, and sell three September 17th 860’s for the same price.

Final numbers to come after the weekend.

May we ever find favor in the eyes of the Holy One.

Eschatologically yours,

Alan B. Harvard

 

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