Posted on October 30, 2020
So do white Jews.
Brown, yellow, red and grey Jews, too.
So do Noahides. Of every stripe and color.
As for the rest, the Sages tell us they won’t be around to see the final redemption.
It means it’s time to pull it together, Cookie.
Drop the leather, quit yer foolin’ and find your proper place in the world.
With today’s options expiry, we have three trades that require your attention.
The first is our Target trade from October 5th, all the details of which can be found here.
The lowdown’s like this –
We’re currently short the October 30th (today’s) 157.50/162.50 CALL spread, we have a credit of $0.69, and TGT closed last night at $154.25.
With Dow futures set to open down 490 points (as of this writing), we say the trade is safe. Leave it. The expectation is that the spread will safely expire OTM.
And that means a gain of 255%.
Our short GLD trade from September 7th is still open and moving constructively.
However, our protective CALL option is expiring today.
Which means we need to buy another.
We recommend you purchase the GLD November 20th 176.50 CALL for $3.00 even.
That will lower our breakeven for the trade to $171.61.
If a break comes, we could see gold falling to the 1600 range on a first leg down.
Keep your beadies feasted!
And so will we.
Our USD/KLAC endeavor, whose details can be found here, now looks as follows –
We’re in possession of a very large $17.00 credit going into today’s expiry, and we’re also holding the USD November 20th 70 PUT (now worth $3.10) and a short KLAC October 30th 180 straddle (now worth –$21.65 INTRINSIC).
And, again, with futures pointing lower (NASDAQ now down 236 points), we can only gain by waiting.
As the Sages write – “Every delay is for the good.”
We therefore recommend you hold the trade until toward the close (or wherever you figure the day’s low is), and sell the long USD PUT. At the same time, buy back the short KLAC 180 CALL, whose price should have diminished appreciably at that point.
It’s very unlikely that KLAC will trade as low as 180 on the day, so you can leave the short 180 PUT to rot.
Best possible outcome, of course, is that KLAC closes directly at 180 (or very close thereto), and both short options are worth near NIL.
We’ll be entering into the Holy Shabbat when trade opens in NY, so you’re on your own for this one.
We’ll be booking the trade at the day’s closing price.
May the Al-mighty of Israel reward you with piles and piles of money to use in this world for the sake of Torah and ma’asim tovim!
Alan B. Harvard
Leave a Reply