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Top Trades for Mon, 12 Mar 2018 10:21 – UCTT

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Top Trades for Mon, 12 Mar 2018 10:21 – UCTT
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PSA/Yodi – You like those storage trades, don't you?  I like them in general but only making $7.50/share so I'd rather wait for a better pullback.  UCTT is a nice, boring company that's a great value.  I like that for the LTP:

  • Sell 10 UCTT 2020 $20 puts for $5.75 ($5,750) 
  • Buy 20 UCTT 2020 $15 calls for $9.50 ($19,000)
  • Sell 20 UCTT 2020 $22.50 calls for $6.50 ($13,000) 

That's a grand total of $250 out of pocket on the $15,000 spread that's almost entirely in the money.  Good for a $14,750 (5,900%) gain on cash if it manages to go up $1.42 in 2 years and TOS says the margin is just $1,898 – so a very efficient way to make $15K in two years!  

Good call Yodi.

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