Posted on July 17, 2020
Several trades to report today. So please take out a well sharpened HB and lick the nib.
First up is our APPF initiative from June 8th, all the details of which can be found HERE.
We closed out one side of the bet with a kindly $9.50 on $33.80 invested, but we’re now sitting on an open 195 CALL.
Unfortunately, with the stock at $145.80, and expiry today, there’s little chance of netting anything more.
We’re therefore confident reporting that at today’s close our return will be 28%.
Second is our WING trade, originally launched on April 29th, and rolled out HERE.
Today, our short 130 CALL trades for $3.80. Buy it back and sell the August 145 CALL for $4.50. In so doing, we add an additional $0.70 to our credit, for a total of $1.05.
Our third trade was launched on February 6th and was subsequently fixed HERE.
We gave you two options at the time – the first, to do nothing and hope for a rise, the second, to take the following proactive steps:
Buy two more lots of X at $5.29 (for a total of 300 shares, and a net debit of $19.57), and sell three X July 17th 6 CALLs for $0.89 each, for a credit of $2.67. Should X close above $6.00 by expiry, you would pocket $1.10 on $16.90 spent, for a total return of 6.5%.
And that’s exactly what happened. Or will happen…
X closed last eve at $8.05, and short of a complete disaster today, we’ll easily clear the $6.00 hurdle and pocket our 6.5%.
For those who opted to do nothing and hope for a rise in the shares, your breakeven remains at $8.99. We would recommend selling the X August 14th 8.50 CALL for $0.49. That will provide you with an exact even-Steven exit on the trade. No loss, no gain.
Finally, our KOL trade from November 7th needs attention. The details of that initiative can be found HERE.
At issue is our short 10 (post-split – 100) PUT that expires today. With KOL at $74.63, we’re forced to roll. Buy back the option for $2.75 and sell the August 74 strike for $2.90.
Should it expire OTM, we’ll close out the trade with $0.15 in hand.
If you followed our rec to set a STOP sell on your FSLY trade at $79, you’ve been sold in. FSLY is now at $78.12, and we’re still holding a short 70 PUT with a September 18th expiry.
We’ve got you covered.
Alan B. Harvard