Posted on June 26, 2019
We’ve got an open trade that needs your immediate attention, friends. Our biggest profit of the year thus far.
And here’s how it went down –
Back on May 5th, in a letter called Philippine President Duterte Threatens BioPharm Beheadings!, we recommended you buy the ABBV January 17th 2020 72.50 PUT for $4.50 and sell the IBB January 17th 2020 100 PUT for $4.60. Total credit on the trade was $0.10.
The idea was to cash in on a very reliable technical pattern called a descending triangle (see the article for full details).
Well, wouldn’t you know it, that reliability paid off in spades when ABBV dumped this week by 16.25% on merger news, and we made off like bandits!
As of today, the ABBV PUTs go for $10.90 and the IBBs sell for $4.40. Sell the former, buy back the latter, and you net $6.60 and exactly NOTHING laid out. BUPKUS! Adjusted for commissions, you take home an amazing 6450% in under two months.
And there’s no carrot cake – no cheesecake, even – that surpasses the taste of this gourmanderie.
Mazel tov if you went in big.
Alan. B. Harvard