Posted on October 2, 2019
We have a bevy of trades to close out on this first day of our glorious New Year (may she be sweet and bring only good tidings).
And they go like this…
First is our BMRN trade from July 8th.
The letter was called Twice in One Month: Dressing for Health Care Success, and you’ll recall that we urged you there to buy the BMRN Oct 18th 60 PUT for $0.65 and sell an XLV October 18th 85 PUT for $0.68, for a total credit of $0.03.
Then, on the 23rd of September, we bought back the XLV PUT for $0.54 (see HERE for details).
The BMRN 60 PUT trades today for $0.74, and because it appears the market may have bottomed here – at east for the time being – we’re suggesting you close her down, lock her up, throw away the key and keep that lady chaste.
Your profit on the affair is $0.23 on nothing laid out, and that’s a tidy 53% for you and the family to spend on borscht and burritos over the holidays.
The second trade was written on September 12th in a letter called What’s on the Investing Menu Today?
There we recommended selling three (3) FXI October 25th 42.50 CALLs for $0.61 and three (3) FXI October 25th 38.50 PUTs for $0.14. Total credit was $2.25.
It appears the time has come to close out half the trade – the short CALLs.
The 42.50s are going for $0.11 each. Rake them back in for a debit of $0.33, and you still have $1.92 remaining from your original credit.
We’ll keep you posted regarding future action on the short PUTS.
Finally, we have our trade from August 22nd that arrived in a letter called “Nor Any Drop to Drink…” Unless You Wanna Pay a Premium.
That missive enjoined you to buy the AWR December 20th 80 PUT for $1.50 and sell the XLU October 18th 62 PUT for $1.44. Total debit on the affair was $0.06.
The AWR option still has nearly three months before expiry, but since we’re looking at a nice bulge in the pocket today, we’re not going to wait.
The AWR PUT sells for $0.85 and the XLU goes for $0.16. Sell off the former and buy back the latter, and you net $0.63 on six cents spent. That’s a worldly 1050% in just six weeks.
And that’s some really filthy lucre.
Pray for a geulah b’rachamim!
Alan B. Harvard