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Thursday, March 28, 2024

Top Trades for Thu, 20 May 2021 15:01 – SPWR

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Top Trades for Thu, 20 May 2021 15:01 – SPWR
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SPWR – So deep in the money it's silly but now they are underpriced again so we're going to cash out both of our spreads for $44,755 out of a potential $48,000 and we're going to move to the following:

  • Sell 20 SPWR 2023 $20 puts for $5.20 ($10,400) 
  • Buy 50 SPWR 2023 $20 calls for $8.75 ($43,750) 
  • Sell 50 SPWR 2023 $35 calls for $4.10 ($20,500) 

That's net $12,850 on the $75,000 spread and we're $16,000 in the money to start and we're taking $31,905 off the table from our original $5,070 entry AND we've reduced our obligation to own SPWR from 3,000 shares to 2,000 – but at a much higher price (was $8).  Still, worst case is owning 2,000 shares at $20 but net of the $26,000 profit we have in our pocket, that would be net $14,000 or $7/share – back where we were when we started only now we've doubled our upside potential.

 

So there you go:  A new SPWR trade that can make $62,150 (483%) as a new trade and WTRH is a $10,000 spread that's currently a net $2,325 credit, so that one has $12,325 (530%) upside potential.  If that were the whole portfolio – it's good for a great return over 18 months!