M came right back off that downgrade – $15 looking very solid as a floor!
Talk about a no-brainer investment. Would have been my stock of the year except for the stunningly negative sentiment possibly causing eventual credit issues.
We have them in the Dividend Portfolio (pays $1.51/share! Next payment is 12/12 – my Dad's Bday…):
| M | Macys Inc. | 2000 | 10/30/2019 | 40 | $30,000 | $15.00 | $0.47 | $15.00 | $15.47 | $0.32 | $930 | 3.1% | $30,930 | ||
| M Short Call | 2022 21-JAN 15.00 CALL [M @ $15.47 $0.32] | -20 | 10/30/2019 | (774) | $-6,500 | $3.25 | $0.03 | $3.28 | – | $-50 | -0.8% | $-6,550 | |||
| M Short Put | 2022 21-JAN 13.00 PUT [M @ $15.47 $0.32] | -20 | 11/1/2019 | (774) | $-7,600 | $3.80 | $-0.58 | $3.22 | $-0.23 | $1,160 | 15.3% | $-6,440 |
We also have them in the Hemp Boca Portfolio (still playable if you like getting up to $10,500 back on a net $1,037 entry that's currently $3,750 in the money):
| M Long Call | 2022 21-JAN 13.00 CALL [M @ $15.47 $0.32] | 15 | 11/20/2019 | (774) | $6,225 | $4.15 | $-0.05 | $3.72 | $4.10 | $0.09 | $-75 | -1.2% | $6,150 | ||
| M Short Call | 2022 21-JAN 20.00 CALL [M @ $15.47 $0.32] | -15 | 11/21/2019 | (774) | $-3,075 | $2.05 | $-0.13 | $1.93 | $0.13 | $188 | 6.1% | $-2,888 | |||
| M Short Put | 2022 21-JAN 15.00 PUT [M @ $15.47 $0.32] | -5 | 11/20/2019 | (774) | $-2,425 | $4.85 | $-0.40 | $4.45 | – | $200 | 8.2% | $-2,225 |
I would add it to Money Talk if I could but we can add it to the STP (now up 61.6%) so let's:
- Sell 20 M 2022 $15 puts for $4.50 ($9,000)
Why? Because who doesn't like $9,000 for doing nothing but promising to buy M for $10.50? Ordinary margin is $5,253, which is high but still – not bad for $9,000.
