Liz here, fiddling with doorknobs! My kid is fascinated with the working locks in our new house, and so far, he’s locked all of us out of the main bathroom and just the adults out of his own room. A for effort, Mr. 4! You will go far.
Unfortunately, the previous owners (hi, Lois and Matt!) didn’t leave us keys for the interior doors, so we’ve been forced to just rip the entire doorknobs off like wild beasts. Until we get a new knob for the bathroom (your next job, HUSBAND)! we’ve been plugging the round peephole with balls of socks. It’s great to be a homeowner and take care of all your own repairs!
Speaking of DIY, make sure you go to Kenny’s live event today at 4pm. He’s going to show you how to get his pair of VWAP indicators and make his crazy trades yourself. (I’ve already emailed you once about it this morning – don’t make me repeat myself.)
ANYWAY, my PTON puts are doing better than my doorknobs at the moment. I said when we first hopped into this play that I expected PTON to dip back to $45 before Christmas, and it’s done just that…
You should still have half of that put position open, and as I write this, it’s up 80% and climbing. Go ahead and close that out for a nice gain – here’s what to do.
Since this one delivered ahead of schedule, I’m going to go ahead and bet that PTON will keep falling… and I’m going to double down with a brand-new set of puts, entirely on my own recognizance. I’ll betcha this is going to hit $40 by Christmas.
Oh, and on top of all that – it’s Mark Monday! He’s got a brand-new uranium pullback trade to start off your week. Let’s go. Let’s rip those door handles right off.
One Door Closes, Another Opens
No sooner had we sorted the bathroom lock situation (when I say sorted, I mean we had wrenched off the knob and inserted the ball of socks) when Mr. 4 locked us out of his bedroom.
He then pretended to be asleep and would not let us in for about half an hour, while we desperately bargained and threatened so we would not have to take off THAT doorknob, too.
As far as puts closing, here’s your PTON profit:
|SELL-to-CLOSE the remainder of your PTON Dec. 17 $45.00 Puts (PTON211217P00045000).|
In the interest of full transparency, I sent you a profit alert for the first half of PTON and by the time it went out, our official tracker did not log it at a profit. I apologize for this and I hope you can sneeze in the face of our official tracker.
Here, as always, is our open portfolio (please follow religiously – at your preferred level of observance).
As a side note, Peloton’s just had a large class-action lawsuit filed against it for, among other things, “falsely assur(ing) investors that Peloton’s recent success was not primarily due to COVID-related increased demand, but rather that the Company’s growth and financial results were sustainable and would continue post-COVID.” This supports a hypothesis I’ve long had that class-action suits directly cause stocks to drop (I wrote a whole long research paper on it once). I’m secretly pleased.
As I said above, I’m now betting that we see $40 or below by Christmas, so go ahead and pick up the fairly cheap $40 puts expiring Dec. 17.
Action to Take:
BUY-to-OPEN PTON Dec 17 $40 Puts (PTON211217P00040000) at $1.60 or better.
Enter as a Good-til-Canceled (GTC) order.
And now for Mark’s uranium trade!
Three CCJ Charts That Tell a Money-Doubling Story
“Uranium is in a small pullback and it’s time to jump into Cameco Corp (NYSE: CCJ),” Mark Slacked me. CJ’s actually in CCJ right now, and while his January calls are down, they still have plenty of room to run.
Uranium spot prices are sitting at $43 at the moment, and as we’ve discussed before, Bank of America sees them headed to $60 by early next year.
CCJ – the world’s second-largest uranium producer, which is also, for some reason, based in Canada – is primed for a pop, according to Mark. He Slacked me three images with a descriptive line for each.
CCJ calls are cheap, and they went up Friday…
Implied volatility (IV) has flatlined…
And realized volatility is trading at a premium.
All of this is, in the words of my Scary Shadow Editor E. Volk, “A Fancy B**** way of saying options are cheap.” (I would tell you more about the Scary Shadow Editor, but if I look at her fully, I will die.)
Mark’s options, indeed, are so cheap that they still qualify as Nickel Slots. (You’ve had two separate Nickel Slots recommendations today – lucky.) “I’m looking for this to double,” Mark says.
Here’s what to do:
Action to Take:
BUY-to-OPEN CCJ January 21, 2022 $28-strike Calls at $1.70 or better.
Enter as a Good-til-Canceled (GTC) order
UPDATE: My child just locked his bedroom door behind him and walked out front saying “I’m sorry, I did something I will never do again.” We WILL have to take the doorknob off.
I’m actually low-key recommending shares in Hanesbrands Inc. (NYSE: HBI) because I see a lot more balled-up socks in our family’s future if this continues.
I’ll be back tomorrow with a Tim Melvin recommendation that will – speaking of socks – knock yours off.
Hang loose – and hang in there till Thanksgiving.