I think the rally off the Fed is silly and, of course, 3,420 is our shorting spot on /ES (as I mentioned in the Webinar) so tight stops above.
The Fed said nothing new at all yet we rallied?
WBA/Maya - Tomorrow.
GE/Ati - Wow. Amazing how they suddenly become more valuable.
In the Webinar we were still liking IMAX and M and LNG from above though LNG is already popping.
For Macy's it was (I'm changing the year):
- Sell 20 M 2023 $7 puts for $3 ($6,000)
- Buy 50 M 2023 $5 calls for $3.70 ($18,500)
- Sell 50 M 2023 $10 calls for $2 ($10,000)
That's net $2,500 on the $25,000 spread so good for a 10-bagger if M gets their footing back.
IMAX is now going to 2023 but the spreads are all over the place so we'll have to wait a bit.
LNG has popped a lot, now $50.44 but we can adjust it as:
- Sell 5 LNG 2023 $45 puts for $9 ($4,500)
- Buy 10 LNG 2023 $40 calls for $18 ($18,000)
- Sell 10 LNG 2023 $55 calls for $11 ($11,000)
That's net $2,500 on the $15,000 spread so $12,500 (500%) of upside potential at $55 and we've got 2.5 years to get there.
