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Hilton (HLT) hotels is a Coronavirus recovery play.
music selection: “The Corrosion” — The Sisters Of Mercy
weigh-in: 191.4 n/c
Hilton has seen steady stock price improvement along with steadily improving occupancy rates. I like the chart and I’m buying a bull call spread today. With shares trading at 144.11, I bought the 140/145 strike bull call spread for 3.00 a share (16 spreads). I put 4,800 in capital at risk over the 61 days till the December expiry. The trade enjoys 0.77% downside protection. Should shares rise 89 cents by expiry the full profit of 3,200 will be earned. That is good for 66.7% or 399% annualized. If the expiry was now, the trade would be good for 1,776 in profit.
AMZN and SPLK finished in the money over the weekend. I earned 6,050 and 4,061 in profits respectively. The month of October is currently coming in at a loss of 1,595. I am trying to gracefully take an early exit to VIRT, which is well in the money and expires in December. That might offset some of the losses if I can get an attractive fill. For November expiries, CROX and MTCH are both threatened. Both report earnings before expiry and I hope to hold until at least then to see if I can catch a rally.
Devour your prey raptors!
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