7.5 C
New York
Friday, April 19, 2024

Top Trades for Thu, 26 May 2022 11:42 – JD, MDT and GLW

0
Top Trades for Thu, 26 May 2022 11:42 – JD, MDT and GLW
psw-placeholder

In the LTP, let's do the following trades from our Watch List:

  • Sell 10 JD 2024 $45 puts for $10 ($10,000) 
  • Buy 25 JD 2024 $40 calls for $22 ($55,000)
  • Sell 25 JD 2024 $60 calls for $13 ($32,500) 

That's net $12,500 on the $50,000 spread that's $32,500 in the money.  Upside potential is $42,500 (340%).

MDT had a recent failure in glucose monitoring but it's a $141Bn company at $101 with $32Bn in revenues and $7.5Bn in profits and generally solid growth despite little mis-steps like this one.  For the Future is Now Portfolio, let's:

  • Sell 5 MDT 2024 $90 puts at $8.25 ($4,125) 
  • Buy 15 MDT 2024 $100 calls at $13 ($19,500) 
  • Sell 15 MDT 2024 $110 calls for $9.25 ($13,875) 

That's net $1,500 on the $15,000 spread so we have $13,500 (900%) of upside potential at $100 – a 10% bump from today.  

We just got more aggressive on DIS and BA in the LTP so that leaves us missing in the LTP:

  • Sell 20 GLW 2024 $35 puts for $5.60 ($11,200) 
  • Buy 50 GLW 2024 $35 calls for $5 ($25,000) 
  • Sell 50 GLW 2024 $45 calls for $2 ($10,000) 

That's net $3,800 on the $50,000 spread and it's aggressive with the targeting but having $46,200 (1,215%) of upside potential means that when GLW gets back to $40, we can sell something like 15 Aug $40s for $2 (current price of the $35s) and that puts $3,000 in our pocket and drops our net to $800.  Do that a few times and we don't need this stock to go up to be a winner!