Posted on January 31, 2020
Coming at ya short and sweet this Friday morning to take care of a BMY trade that needs repair.
This is going to be the second rollout on the trade, all the details of which can be found here.
Bottom line is the spread we wrote is expiring, and we need time to let it die without a loss.
Recall that on January 16th we sold the BMY January 31st 60 CALL and bought the 66 CALL, adding a penny credit to our original nickel, for a total net credit of $0.06 on the trade.
Today, the 60 CALL goes for $3.90 (the 66 is worthless). We’re buying it back and selling the BMY February 14th 59/65 CALL spread. That is, sell the 59 CALL for $4.95 and buy the 65 CALL for $1.00, thereby adding another nickel to the credit (now $0.11 total) and buying another two weeks on the bet.
And with that, fellow Jews, we bid you a sweet and Holy Sabbath.
May it offer you peace and rest from the whirligig maelstrom of western life.
Alan B. Harvard