Posted on March 12, 2020
Salutations and good tidings to all you good Jews and Noahides!
Our Maker is pleased with us.
He’s sent us a bounty of good cheer and holy lucre for this holy, festive week of Purim!
We start with our BMY initiative, opened back on November 4th, all the details of which can be accessed here.
Bottom line is we have a credit of $0.47, and we’re short tomorrow’s March 13th 60.50 CALL, which currently trades for $0.04.
We’re recommending you buy the option back.
Do so, and you pocket a handy $0.43 on nothing laid out. Adjusted for minimal commissions, gives you a return of 187%.
The road was long. But thanks to the Al-mighty, a profit was finally turned.
Now to a trade we issued under the title Stimulate the Aviaries! back on October 7th. You’ll recall that we urged you to sell the CAE March 20th 25 CALL for $1.35 and buy three (3) March 20th 22.50 PUTs for $0.40 each. Total credit on the trade was $0.15.
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.
Finally, we turn to our Microsoft wager of January 27th.
The dossier was called Bill Gates Meets the Butcher, and today we see that the meat that resulted was Glatt Kosher, fatty in the extreme and spiced just right for Shabbat.
The trade recommended you sell a CALL spread and use the funds to buy a PUT spread.
Like this –
Sell the MSFT July 17th 170 CALL for $7.30 and buy the MSFT July 17th 180 CALL for $4.25, for a credit of $3.05. Then, buy the MSFT July 17th 155 PUT for $5.80 and sell the MSFT July 17th 145 PUT for $2.93, for a debit of $2.87. Total credit on the trade was $0.18.
Buy back the CALL spread (170/180) immediately for a net debit of $2.50 ($5.95/$3.45), then sell the PUT spread (155/145) for a credit of $5.10 ($23.35/$18.25).
Net/net you disembark this cruise ship healthy and happy, with your wallet $2.60 fatter on bupkus spent.
And that translates to a commission-adjusted, ten week profit bonanza of 1633%.
Virus or no virus, we’re going to make you a killing.
Alan B. Harvard