Posted on July 9, 2020
Two trades require your attention today.
The first is our FSLY initiative of June 28th.
The report was called The Market Peaks Fast! Faster! Fastly!, and you’ll recall that we encouraged you to –
“…short sell shares of FSLY (then trading at $86.51) and sell short one September 18th 70 PUT for $9.70. Set a STOP buy order on the shares at $96 to ensure against a loss.”
As of yesterday afternoon, the STOP was triggered and we were bought in at 96 (the stock is now at $96.16).
That leaves us with a $0.21 credit and an open short FSLY 70 put with a September 18th expiry.
Our next course of action is as follows –
We’re recommending you open a STOP sell order at $79 to reinstate the short sale should FSLY drop from its current heights. We would also urge you to set a trailing STOP BUY order (after the fill) to ensure against any cataclysmic losses.
We’ll be watching closely, of course, and will issue any real time directives as necessary – both in the lead-up and post-trade phases of the bet.
Next up was our June 3rd directive (From One Casino to Another), in which we recommended you buy EVRI shares for $6.75 and sell the June 19th 7.50 CALL for $0.60 (one for every 100 shares purchased). Debit was $6.15, and…
So, with the shares currently at $4.72, we’re urging immediate evasive action in order to pull this one back into the black.
We’re recommending you buy another 100 shares at $4.72 and sell two (2) EVRI December 18th 5 CALLs for $1.35 each (one for each board lot purchased).
That will reduce our cost base for the shares to $4.09.
Should they be called away at expiry, we’ll see a 22% return.
May the Holy One Blessed Be He will it.
Alan B. Harvard