I’ll be playing Becton Dickson (BDX) this week.

music selection:  “I Can’t Wait” — Nu Shooz

weigh-in:  213.8 (1.2) – not bad for Turkey Week

No trades expired over the weekend.  I also  have a bonus trade this week of a long put in Cheesecake Factory (CAKE).  I made 1,372 in profit the last time I made this trade.  The thesis is the same.  CAKE is reliant heavily on mall traffic.  If the retail apocalypse weren’t enough, COVID has hammered mall traffic in a way it might never return.  The restaurant chain is also heavily indebted.  I bought the 35 strike 21JAN2022 expiry put for 7.70 a share.  I  need the price to fall about 6% to move into the money.

I also have bull call spreads in NVO, AMZN, and PYPL that I will not be detailing here.  These trades were recommended behind a paywall at Stansberry and I don’t feel it is fair to give paid advice away.  I’ll include the P&L results when the trade closes including in my monthly Transparency.

This week’s  main trade is in Becton Dickson (BDX) the medical supplies provider.  The company is a Dividend Aristocrat with 48 consecutive years of distribution increases.  It is a mature company with a slow  moving equity price.  It is perfect for an in the money spread with a short time horizon.  With shares around 228, I bought the 240/250 bear put spread with 18DEC2020 expiry for 8.40 a share.  I picked up 4 spreads putting 3,360 in capital at risk.  The trade enjoys 4.87% protection against an upward move in price over the 47 days in force.  Should the protection not be breached, I will earn 640 dollars or 19% over the 47 days.  That comes out to 366% annualized.

Devour your prey raptors!

Bear put spread with expected yield of 366%

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