MJ/Albo – Someone asked about a new entry on MJ yesterday and I want to reiterate that I think ALL of the Marijuana stocks that are public are massively overpriced but that doesn't mean they won't go higher.  New Age is making more sales and more money than CRON and we decided it's still too early to go public as we can put up some stunning numbers in another year or two and THEN we will go public.  So I firmly believe the best way to invest in Cannabis is through private equity but, if you MUST play in the public market – THEN I like the MJ ETF as it spreads the risk and it's very likely that one or more of their holdings will go on to be 10-baggers.

So, as a new trade, I like:

• Sell 10 MJ 2021 $30 puts for $8.25 ($8,250)
• Buy 20 MJ 2021 $27 calls for $7.50 ($15,000) 
• Sell 15 MJ 2021 $40 calls for $4 ($6,000) 
• Sell 5 MJ April $32 calls for $2 ($1,000)

That's net $250 credit and we'll call it a $26,000 spread since the short April $32s can be rolled to the 2021 $40s if MJ pops but selling the shorter-term calls 8 times for $2 ($1,000) is $8,000 vs one time for $4 ($2,000), so it's worth the effort to have 5 flexible sales to make each quarter (or not make if things look good).  Meanwhile, the upside at $26,000 is $26,250 which is a Bazillion percent – so it's a really good trade and the worst thing that can happen is you can be assigned 1,000 shares at a bit under $30.