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Tuesday, April 23, 2024

Top Trades for Thu, 03 Sep 2020 15:01 – VIAC

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Top Trades for Thu, 03 Sep 2020 15:01 – VIAC
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Wheee, that was fun!

Now we'll see what kind of bounce we get at 28,200, 3,450, 11,800 and 1,540

Nice move on RB, $1.20 is the stop line now – congrats to the players. 

IMAX/Swamp – Not sure WHICH IMAX trade so can you post it?  I think they are solid long-term but, if uncovered, might be a good time to do so.

Vaccine/Batman – That is the lie you choose to believe?  Trump is planning an "October" surprise of pushing out ANYTHING that seems like a vaccine so he can claim victory before the side effects are revealed.  Again, a day does not a trend make and the looming DISASTER is sending 50M children back to school WITHOUT a vaccine in a population that's only been about 70% exposed.    As I said in the Webinar yesterday, I like M, I like WBA, I like VIAC, I like IMAX – not because there's maybe a vaccine but because they are just great values and a vaccine would be a bonus but, even without one – I'll be happy to own them in 10 years.

VIAC/Batman – As a new spread, I'd go for:

  • Sell 5 VIAC 2022 $25 puts for $5.15 ($2,575) 
  • Buy 10 VIAC 2022 $25 calls for $7.50 ($7,500)
  • Sell 10 VIAC 2022 $32.50 calls for $4.35 ($4,350) 

That's net $575 on the $7,500 spread that's $3,000 in the money to start with an upside potential of $6,925 (1,200%) at a very reachable $32.50 in 18 months.  I think that's a comfortable ROI and the worst-case is owning 500 shares of VIAC for $26.15, about 10% off the current price.  

MHVYF/Tech – That's Mitsubishi Heavy Industries, not Mitsubishi Financial – two separate stocks.