Good morning!
/NG off to a really bad start, /NGK6 testing $1.76 for the first time. Maybe I'm nuts on this trade???
Pro: Nat gas is bargain of the century
Speculators boost net shorts in natural gas -CFTC
Former Cheniere CEO Souki Starts His Own LNG Company
CERAWEEK-Cheniere to export 8 to 10 additional LNG cargoes in coming months
Anyway, I'm back to 15 long down here, hopefully pick up 2-3 cents to lower the basis on the original 10.
- More notes on Natural Gas: http://bit.ly/24DDLBd
KR/Stock - Sell puts because they had terrible sales numbers? They do have costs under control and beat on earnings but a lot of the "growth" in sales was the acquisition of Roundy's.
They make $2Bn a year and the market cap is $37Bn so not a bargain - especially for a grocery store. WFM has a p/e of 21 and they have heavy growth. SVU has a p/e of 8.5, half of KR and, at $5.15 per share, you can make some great options combos out of them like:
- Sell 10 SVU 2018 $5 puts for $1.25 ($1,250)
- Buy 20 SVU 2018 $3 calls for $2.65 ($5,130)
- Sell 20 SVU 2018 $5 calls for $1.50 ($3,000)
That's net $880 on the $4,000 spread that's starting out in the money and TOS says $1,420 in ordinary margin so very efficient for any kind of portfolio and all SVU has to do is hold $5 and you make $3,120 in two years.
I'm sorry for your sister-in-law's situation and, of course, sorry for her loss. Of course she'll need marriage certificate and proof of residence (hopefully same as his) and she'll need a local lawyer who specializes in estates. Hopefully one of the Members knows someone in Texas who can help. Ask her if she at least knows who his lawyer is - that could be a good first step.
