I am just hearing that a Chicago institution is closing soon … for good.
Yes, our beloved Ceres Cafe located in the lobby of the Chicago Board of Trade has become a victim of a combination of exchange floor closings and Covid.
Ceres is named after the Roman goddess of wheat statue at the top of the Chicago Board of Trade building.
Such a beautiful iconic building with its Art Deco interior. It always reminded me of The Fountainhead and Atlas Shrugged.
Ceres is famous for its extremely strong mixed drinks and the people that have been working there forever.
Very nice people. The best people.
They are also famous for their fish sandwich, which was only served on Tuesdays and Fridays.
Lightly battered and fried fillet of sole that they would pile on so high you would have to pick it apart to eat it.
I can remember taking the fish sandwiches to the Bulls’ Game to watch Michael Jordan back in 1986 or 87
Damn … long time ago.
I guess it goes along with the closing of the trading floors.
The South Loop in Chicago is so quiet these days.
And now the Bears are leaving Soldier Field for Arlington Race Track in Arlington Heights!!
What is next, Chicago??
Dr. Seuss said, “Don’t cry because it is over, smile because it happened.”
And I’m also smiling because of my latest trade idea. It’s a real RIOT.
Laughing to the Bank
My trade idea is in Riot Blockchain (Ticker: RIOT), here is the stock chart:
RIOT has come down from the $39-$40 level since Aug. 27, trading down to a low of $24.35 on Friday.
Friday’s candle formation is a hammer which can signal an end to a down trend.
It shows that the stock traded lower but the bulls prevailed by rallying back and closing near the high of the day.
Yesterday’s green candle trading higher than Friday’s close is our confirmation.
So, looking at the options, I like the near term Oct. 15 expiration cycle — it still has ten days and it has the most volume:
- If RIOT opens today and continues to trade higher, I will buy the Oct. 15 26-strike calls with an 89.42 implied volatility and sell the Oct. 15 31-strike calls trading at an implied volatility of 94.08.
That is a nice spread in implied volatility: buying an 89.42 and selling a 94.
- I will pay $1.40-$1.45 for this spread.
- I will bail if it trades down to a buck and I will take my profits in the $2.50 range.
In my last two letters, I recommended long positions in Apple (Ticker: AAPL) and United Parcel Service (Ticker: UPS), well … the market in general had other ideas.
Monday brought us a large 70-point swinging day, closing down almost 60 points in the S&P 500.
But no harm done, neither AAPL nor UPS opened higher or traded higher, so no trade, which means no money lost.
P.S. Come to Chicago — it is still fabulous.
Thanks for Reading … See You Next Tuesday!