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Top Trades for Thu, 02 Dec 2021 11:54 – TD

I love TD:

TD -0.46%Dec. 02, 2021 6:46 AM ET5 Comments

$74.50 is $130Bn and these guys are making $14Bn a year and made $12Bn last year so rock-steady income stream.  They have long-term options now and only a 3.5% dividend ($2.55), so not worth owning the stock but, for the LTP, let's:

  • Sell 10 TD 2024 $70 puts for $8.50 ($8,500) 
  • Buy 25 TD 2024 $60 calls for $15 ($37,500) 
  • Sell 25 TD 2024 $75 calls for $7.50 ($18,750) 
  • Sell 5 TD April $75 calls for $3 ($1,500) 

That's net $8,750 on the $37,500 spread so we have $28,750 of upside potential where we are now and we have 7 more quarters to sell calls as well to knock down the basis.  Our risk is owning 1,000 shares at net $68.75 – and we'd be happy to do that anyway


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