Posted on July 23, 2020
Let’s get straight to it, you buncha sophomoric wisecrackers.
The precious metals are on the move. And that means we’ve got cash to bank.
First trade on the docket was opened March 4th in More Ample Profits and Your Long-Awaited Gold/Silver Directive. The recommendation was to buy three (3) January 21st (2022) SLV 17 CALLs for $2.00 each (debit $6.00), and sell two (2) January 21st (2022) GLD 210 CALLs for $3.05 each (credit $6.10). Total credit on the trade was a dime.
The GLDs go for $8.40 and the SLVs for $6.50. Buy back the former and sell off the latter, and you pocket $2.80 on nothing expended. Adjusted for minimal commissions gives you a take of 1767%!
Next was our IAU/SLV pairing from June 10th’s directive, Officially Arrived at Airplane Glue Highs. There, we urged you to buy shares of SLV for $16.42 and buy the January 15th 16 PUT for $1.37. Then, sell short IAU (at $16.38) and sell the January 15th 17 PUT for $1.25. Total debit was $0.16. We also recommended a STOP buy for IAU at $17.63.
SLV trades at $21.44 and IAU at $17.85 (though we got stopped in at $17.63). Sell the former and close out the options – the SLV 16 PUT goes for $0.41, and the IAU 17 PUT trades for $0.50 (net –$0.09).
Your total take on the effort is $3.72 on an initial $0.16 debit.
That’s an astonishing 2225% in just six weeks.
One clarification to make – the CALL side of our IGV/TQQQ trade, launched on July 6th, was closed on July 12th for a $2.00 credit and not as reported on July 20th for $6.75.
On June 30th your inbox saw the appearance of Pulling it All Together: Presenting the Long/Short, Market Neutral, Event-Driven Bond Straddle, a doozy of an bet that pitted TMV against TLT.
The details were like this – buy the TMV August 21st 52 straddle for $7.20 and sell the TLT August 21st 164 straddle for $7.40. Total credit was $0.20.
And today we’re taking profits on the PUT side.
The TLT 164 PUT sells for $0.68 and the TMV 52 PUT goes for a fat $4.90. Buy back the first and sell the second and you make an absolutely humungous $4.22 on this, the first side of the straddle.
May there be many more.
The G-d of Israel is good!
Sing it out!
Alan B. Harvard