Posted on March 18, 2020
We’re pulling big bux from the whirlwind in REAL TIME, so grab your pencils and jot this down in a jif!
Our GLD trade from January 9th, Straight Up ‘Gold Going Red’ Trade, recommended you sell the GLD March 20th 148 CALL for $2.95 and buy the GLD March 20th 152 CALL for $1.85. We then urged you to use your $1.10 credit to then purchase the GLD March 20th 144 PUT for $1.57 and sell the GLD March 20th 140 PUT for $0.53. Total credit on the trade was $0.06.
And today, with GLD at $140.21, we’re urging you to close it down.
Buy back the 148/152 spread for $0.33 ($0.52/$0.19), and sell the 144/140 for $1.99 ($4.95/$2.96).
Net/net, you walk from the trade with $1.72 on nothing spent. That’s a grandiose, mind-the-swinging-door profit of 1046%!
Our MKTX initiative, opened May 20th and whose details can be found here, is next on the block.
Our breakeven on the trade is $345.45 and the shares are currently trading at $314.55. We’re short the March 20th 330 CALL, which expires tomorrow and now trades for $9.50.
Buy it back and you walk away from this puppy (after a very long wait) with $5.95 on $0.25 spent. That’s a grand finale of 2380%!
The spreads on the options are crazy wide, but the long 22.50 PUTs are $3.59 in-the-money as we write. Enter a limit order for $3.00 and tell us what happens. Leave the short 25 to fry, and we’ll speak again when the bells stop ringing.
If you got filled back then, you took home 5900%.
But if you didn’t, you’re now a champion.
Have a look –
Since then, CAE has done nothing but decline. It’s now trading at $10.32!
If you’re still holding the puts, sell them immediately. They’re trading for $10.00 each, even though they’re $12.18 ITM. If you sell now, you gain of $30.15 on nothing spent. Adjusted for minimal commissions gives you an other-worldy profit of 20,000%. Leave it ‘til tomorrow’s expiry and … who knows?
We traded a DBC/UDN pairing on February 27th in a communiqué called Commodities Battle the Hydra! There, we urged you to consider selling the DBC October 16th 15 CALL for $0.35 and buying the UDN September 18th 20 PUT for $0.45. Total debit on the trade was $0.10.
The UDN trades for $0.85 while the DBC goes for $0.20. Sell the first and buy back the second and you walk with $0.55 on a dime laid out. That’s a very spicy 550% in just three weeks. Annualize your winnings (because that’s what many people do) and your take is a very fashionable 9533%.
Alan B. Harvard