TWTR/Tstep - See Friday's comments. My new theory is that TWTR, for whatever reason, has been pushed into culling all the bots and fake subscribers and THAT is why their growth seems anemic and that's why they are no longer going to report subscriber growth - just income, which is up nicely from last year (and revenues are up 24% too).
So I think this is just TWTR's pain of cleaning house but that will make them more marketable in the future so we can now bet on the future (and get our money back) with the following for the OOP:
- Sell 10 TWTR 2021 $25 puts for $4.20 ($4,200) - TOS ordinary margin is $2,514
- Buy 15 TWTR 2021 $25 calls for $10.50 ($15,750)
- Sell 15 TWTR 2021 $37 calls for $6.00 ($9,000)
That's net $2,550 on the $17,000 spread that's $7,500 in the money to start so all TWTR has to do is hold $30 and we are profitable. The potential profit is $14,450 profit (566%) at $37.
And, of course, I'm doing 15 with the intention of selling 5 short calls down the road. The April $33s are 10% out of the money and pay $1.20 so 5 short would be $600 using 66 of our 704 days. 10 sales like that would at $6,600 to our bottom line - but not yet.
S&P/Soma - As I said, my kids' college funds are in CASH!!! as the S&P has not proven itself about the 200dma so - bonds for now. As I've mentioned before, you can only buy ETFs with the tax-free college funds and the choices are super-limited and no inverse funds so you can't protect them so, since they were adequate to pay for my girls' colleges, I didn't see the sense of risking a year's education on a 20% drop - especially since any extra money left in the fund is taxed 50% so, outside of expensive grad schools, there's little benefit to letting it ride.
