TEVA/Pat – They lost $18.5Bn in 2017 and 2018 and this year maybe they make $3.5Bn and you can buy the whole company for $8Bn at $7.50 so worth a gamble but I think I'd play just a bull call spread like the 2022 $4 ($4.50)/$10 ($2.35) bull call spread at $2.15 as that pays almost 200% at $10 so why takes risks to be greedy?
By the way, note our Trade Idea in the morning post:
For our Long-Term Portfolio:
- Sell 5 VAC October $30 puts for $8 ($4,000)
- Buy 10 VAC Nov $40 calls for $18 ($18,000)
- Sell 10 VAC Nov $75 calls for $8 ($8,000)
That's net $6,000 on the $35,000 spread that's $8,000 in the money to start so the upside potential at $75 is $29,000 (483%) and your worst case is being assigned 500 shares of VAC at $30 ($15,000) plus the $6,000 spent on the spread would be $21,000 or $42 per share – still 15% below the current price. That's your WORST CASE!
Oil/Tangled – Though it decays, USO is a reasonable way to play oil and the Jan $2 ($3.10)/$5 ($1.25) bull call spread is $1.85 and you can sell 5 VLO 2022 $25 puts for $7 ($3,500) to pay for 20 of the spreads ($3,700) for net $200 on the $6,000 spread so $5,800 (2,900%) upside potential and VLO is a vital industry and that still gives you 30% downside protection.
Criminal/StJ – It's not criminal if you have packed the courts with "your" judges.
Subways/Dawg – How can our "leaders" be this stupid? It's amazing!
