In the LTP, let's do the following trades from our Watch List:
- Sell 10 JD 2024 $45 puts for $10 ($10,000)
- Buy 25 JD 2024 $40 calls for $22 ($55,000)
- Sell 25 JD 2024 $60 calls for $13 ($32,500)
That's net $12,500 on the $50,000 spread that's $32,500 in the money. Upside potential is $42,500 (340%).
MDT had a recent failure in glucose monitoring but it's a $141Bn company at $101 with $32Bn in revenues and $7.5Bn in profits and generally solid growth despite little mis-steps like this one. For the Future is Now Portfolio, let's:
- Sell 5 MDT 2024 $90 puts at $8.25 ($4,125)
- Buy 15 MDT 2024 $100 calls at $13 ($19,500)
- Sell 15 MDT 2024 $110 calls for $9.25 ($13,875)
That's net $1,500 on the $15,000 spread so we have $13,500 (900%) of upside potential at $100 - a 10% bump from today.
We just got more aggressive on DIS and BA in the LTP so that leaves us missing in the LTP:
- Sell 20 GLW 2024 $35 puts for $5.60 ($11,200)
- Buy 50 GLW 2024 $35 calls for $5 ($25,000)
- Sell 50 GLW 2024 $45 calls for $2 ($10,000)
That's net $3,800 on the $50,000 spread and it's aggressive with the targeting but having $46,200 (1,215%) of upside potential means that when GLW gets back to $40, we can sell something like 15 Aug $40s for $2 (current price of the $35s) and that puts $3,000 in our pocket and drops our net to $800. Do that a few times and we don't need this stock to go up to be a winner!
