12.3 C
New York
Friday, April 19, 2024

Top Trades for Fri, 05 Feb 2021 11:07 – WU

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Top Trades for Fri, 05 Feb 2021 11:07 – WU
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Good morning!  

Nice little dip on /CL but didn't quite make 0.50 but we'll take 0.25 and re-set if we can at the same lines (when crossing below).  

SCO March $9 calls at target (0.65) – let's pick up 50 of those in the STP.

You're welcome Swamp, great to have you on board! 

WU/Yodi – Good one!  Nice 4% dividend (0.90) but I'd rather go with (for the LTP):

  • Sell 10 WU 2023 $22 puts for $4.50 ($4,500) 
  • Buy 20 WU 2023 $20 calls for $4.50 ($9,000) 
  • Sell 20 WU 2023 $30 calls for $1.25 ($2,500) 

That's net $2,000 on the $14,000 spread that's $6,000 in the money to start.  The worst-case is owning 1,000 shares at net $24 (assuming our $2,000 is wiped out) and that's only 1/4 of an allocation block – so we have no issue with ownership at about the current price – that's why we can afford to be aggressive with the put sales.  WU is thinly traded so you have to be patient to get your fills.

AMGN is also a good deal.  If they pull back to $220 I'll be into selling some $200 puts.

AMJ/Yodi – Good way to play that one.

Good way to spread your MLP risk.