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TRADE BULLETIN: Two to Tend on an Off-Week Expiry (UPS, DE)

Posted on September 24, 2021

Two trades need tweaking, as options expire on our UPS and DE initiatives.

We start with UPS, whose trade details can be found HERE.

To sum, we’re short UPS at $192.97, are long tonight’s 195 CALL, and have a credit of $182.12.

And…

With the CALL expiring we need overhead protection.

And we’re providing it with the purchase of the UPS October 15th 195 CALL for $0.92.

That gives us a buy-in slightly above overhead resistance – right where we want it.

It also reduces our credit (and breakeven) to $181.20.

Next up is our Deere bet, the details of which are located HERE.

In this instance, we’re holding a credit of $17.70 and are short two (2) DE September 24th 315 CALLs.

With DE now trading at $351.50, we’re recommending as follows –

We’re waiting until the close (or on any intraday weakness) and buying back the short CALLs, then selling two (2) DE October 15th 315 CALLs for $36.10 each.

That gives us three more weeks and should maintain our credit above $15.00 (S&P futures currently down 18 points three hours before the open).

We’ll have final numbers for you on Monday.

May the G-d of Israel shine His holy light upon us.

Chag Sameach and Shabbat Shalom!

Eschatologically yours,

Alan B. Harvard

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