24,750!
/SI/Malsg - Hopefully just starting a nice move but I don't think the Dollar will go much lower:
MDLZ/Learner - Good call actually. Range has been between $39 (not counting spike) and $45 recently and even going back to 2015, the same range had generally held. It's right in the middle at $42.34 and it's certainly a stock we don't mind getting "stuck" owning so we can make a bullish butterfly on it and we certainly could use a new one so let's add this to our Butterfly Portfolio:
- Sell 10 MDLZ 2020 $40 puts for $2.65 ($2,650)
- Buy 20 MDLZ 2020 $40 calls for $5.55 ($11,100)
- Sell 20 MDLZ 2020 $47 calls for $2.25 ($4,500)
- Sell 5 MDLZ Aug $42 calls for $1.40 ($700)
- Sell 5 MDLZ Aug $42 puts for 0.88 ($440)
So our net entry is $3,950 and we have 557 days to sell until 2020 expiration and Aug expiration is 39 days away so we're selling about 1/14th of our time for $1,140. 14 sales of $1,140 is going to be $15,960 of premium sales ahead of us, which is a nice return (and these are very cautious quarter-sales to start with) and we also can make up to $14,000 back on the spread if MDLZ finishes at $47 so there's potential here for a $24,000 gain (600%) if all goes perfectly - but it never does. Let's just say we have a very high degree of confidence in this trade making us some money!
Thanks Learner, it's about time we added another Butterfly play!
Cannabis/Soma - My top cannabis play right now is the company PSW Investments is working with (private equity). I just met with them in NY this weekend and I think they are perfectly positioned to take advantage of an exploding market.
