Posted on May 28, 2020
Very brief pre-holiday missive that requires action on your part.
Here goes –
First up, close out your XOP initiative launched on May 18th.
The trade had you buy the XOP June 12th 40 PUT for $1.04 and sell the XOP June 12th 53 CALL for the same $1.04. Zero premium was the result.
Unless you already have parameters set for a STOP loss, we’re recommending you buy back the CALL for $1.48 and sell your PUT for $0.88. We don’t like where this could be headed.
Loss on the trade is $0.60.
We’re recommending you shut down your XLV/IYF combo opened on May 11th.
The letter recommended you buy shares of IYF at $105.42 and sell XLV (then at $99.41), for a total debit of $6.01.
Today, IYF sells for $112.48 and XLV for $100.47. Sell the former, buy back the latter and you pull in a hefty (net) $6.00 in just over two weeks!
That’s 100% return, friends.
And congrats to The Ravin’ Bird and John C. who went in big.
Not last, actually. We have one more item to recommend at the close.
Close out your April 20th IAU/SLV pairing whose details can be found here.
We recommended you sell IAU (then at $16.10), and buy SLV (then at $14.27) for a credit of $1.83.
IAU is at $16.38 and SLV is at $16.15. Buy back the former and sell the latter and you take home $1.60 on nothing spent.
Adjusted for minimal commissions gives you a profit of 967%.
On April 16th we opened a GDX/UUP pairing that saw the GDX position get stopped out. We’re suggesting you place a STOP sell under the UUP shares today, as we’re not happy with the technical picture anymore.
Feel free to tailor this one to your own risk tolerance (while still allowing the stock to play), but we’re going to suggest a $26.25 level to those who need some guidance.
All the best, and lots of holiness to all you good Jews and Noahides on this Shavuot holiday.
Alan B. Harvard