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.
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.
Alan B. Harvard