Hey Trader,
Back before everybody worked from home in their pajamas …
There was a thing called casual Fridays, where us office folks were gifted the ability to “dress down” one day per week.
My personal favorite outfit?
One of the many fashionable t-shirts from my vast collection, and a pair of Levi jeans.
Nothing like a good pair of Levis, am I right?
Speaking of …
Was it a coincidence that I closed out this +145% winner on Friday?
Levi Strauss & Co. (Ticker: LEVI) might not be the first name that comes to mind when you think about Big Money trades.
After all, the company moniker is more likely to bring a cowboy to your mind's eye than a hedge fund manager …
Which made it even more interesting when I saw a Smart Money move in LEVI’s pits.
On Friday, July 15 this trader opened up 2,000 August 18/19 call spreads, paying $0.50 for the 18’s calls, and selling the 19’s for $0.20.
All in all, this trade required an outlay of $60,000 … not exactly the biggest Big Money we’ve looked at by any means.
(In fact, when we’re used to seeing Big Money trades with a multi-million dollar price tag … a mere $60k almost looks downright paltry!)
But when looking at LEVI’s pits, a block of 2,000 contracts is surprisingly massive!
I also found it quite interesting because LEVI had been suffering a long downtrend on the charts…
And the denim company had already reported earnings, so volatility expectations were low …
(Which actually worked to our benefit, by keeping options prices cheap!)
So for better or worse, LEVI piqued my interest during my Friday Big Money Flow show …
And I ended up deciding to piggyback the trade!
I even decided to hop on the same exact contract … but I didn’t feel the need to turn the trade into a spread to lower my costs.
I’d rather pay a little more to keep my profit potential unlimited!
So I made the trade, and went about my day … into the weekend, back into Monday …
But on Tuesday, I noticed my little LEVI trade was really starting to take off!
The shares were rallying, and my $0.50 option was now worth more than $1.00!
I took half of my position off, and decided to let the final five contracts run just a bit longer …
By Wednesday, my contracts were trading at $1.25 … that’s a 150% premium on what I had paid!
Given how wildly unpredictable this market has been lately … I had to take a bit more profit.
But … I had two more contracts to let ride …
And by the time Friday rolled around, with my final two contracts up 220% … I finally shut ‘er down.
All in all, I clocked a 145% gain!
And look at this …
I wasn’t the only one closing out on Friday …
It seems like Big Money also chose to take their winnings.
So is that it?
Is LEVI’s run higher?
Actually …
That “close out” was actually a “close and roll” … up and out to the September 20/22-strike call spread!
It looks like our little LEVI may still be ready to fly …
Will you be following it this time?
Your Only Option,
Mark Sebastian