Posted on April 10, 2020
Don’t look now, but while we were serving our G-d, offering Him thanks and praise for the goodness He continues to rain down upon us despite our failure to build Him a holy dwelling place on Har HaBayit, He gave us a smashing return on our FAS/XLF trade!
On the first of April, we shot you a post called Wait! That’s no Commodity! in which we urged you to buy shares of FAS ($19.24) and sell those of XLF ($19.55) in equal numbers. Then sell one XLF May 15th 19 PUT (for $1.28) for every 100 XLF shares sold. Total credit on the trade was $1.59.
The short PUT was not naked, as it formed a clean hedge with the short XLF stock.
We’re prepared to close the trade, but we imagine there will be those among you who are not, and we wish you luck – and an important caveat.
When you do, you must close all open positions – including the short stock and the short PUT. Failure to do so could be ruinous.
As of this writing, you all made BIG cash. Sell the FAS stock, now trading for $31.36, buy back the XLF stock, now at $23.38, and the short XLF PUT for $0.43, and you step away with $9.14 on NOTHING EXPENDED.
Adjusted for minimal commissions gives you a 5993% return in ten bleeping DAYS (not months or years).
And that’s a fine helping of buttered matza!
The subscriptions are rolling in fast, friends, and the special offer rolled out for expiring 30 day trials will soon be moth-balled.
Get it while you can. This one, jumped-up trade would have paid for a full year and more.
Alan B. Harvard