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TRADE BULLETIN: Two Trades Need Your IMMEDIATE Attention (CME,FCX)

Posted on August 2, 2019

Two items in the docket today, so listen up.

We’re advising you to shut down one half of your CME/KRE pairing that was opened back on July 1st in a letter called Peak Stock Exchange.

You’ll recall that we advised you then to sell the CME August 2nd 197.50 CALL for $4.03 and buy the KRE January 17th 53 CALL for $3.95.  Total credit on the trade was $0.08.

Today, we’re just a few hours from the CME CALL expiring in-the-money.

We’d prefer that wasn’t the case, but life being what it is, our hand is forced.  Buy back the option immediately for $3.50, and hold the long KRE CALL, which still has five and a half months to go before it melts.

Next up was a trade we launched just a week ago, on the 25th of July.

The letter was called Heavy Metal From the Shtetl, and there we urged you to sell the FCX November 15th 13 CALL for $0.61 and buy the November 15th 14 CALL for $0.34, for a credit of $0.27.  With the proceeds, we recommended you purchase the FCX November 15th 10 PUT for $0.32.  Total debit on the trade was $0.05.

And today?

The 13 CALL goes for $0.24, the 14 CALL for $0.12 and the 10 PUT for $0.58.

Buy back the first, and sell the second and third, and you net $0.41 on a nickel spent.  That’s a healthy 820% in seven days.  Annualized, that trade is worth 42,640%.

And may the Al-mighty be praised.

Eschatologically yours,

Alan B. Harvard

 

2 responses to “TRADE BULLETIN: Two Trades Need Your IMMEDIATE Attention (CME,FCX)”

  1. Ruby Levine says:

    Congratulations on your FCX trade.
    But please explain to me what you expect from the CME/KRE pairing.

  2. Hugh L. O'Haynew says:

    Hi Ruby,
    With the CME half of the pair closed, we’re sitting on a long KRE CALL position that expires in January.
    The spread on the option is rather wide at present, but if you wanted to enter a limit sell order, we might encourage it.
    We’re holding on for now, though, as we still see some good upside from the regional banks — even despite the latest selloff.
    Thanks for writing.
    And be careful out there!
    Hugh

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