Editor’s Note:

Go watch Garrett live right now. I’m sending this email early so you won’t miss his show. Go go go. Not playing.

Liz here, sick as a dog. (Grape-sized baby is in the process of turning into a kumquat, and it’s not pleasant.)

And I have irritating news for you as well – thanks to our tracking software being on the fritz, that 72% Tom win we clocked yesterday was officially logged in the system as 12%.

So congratulations on a much smaller double-digit win. I’m looking into it with Morgan, the Eye of Sauron.

However, you did get an official 301% legal gain yesterday on 8-Baller’s ASAN spread, so you’re not hurting! (For more 8-Baller trade ideas, join Warlock’s World, where he hunts and teaches VWAP trades in the Daily Decode LIVE!)

We’re moving Tom back to his routine Money Calendar Friday slot, for convoluted reasons that I am too sick to explain. That’s good, though, because he gets an extra chance to jump into the EARNINGS SUPER BOWL today with a brand-new play, this time on peanut butter and jelly. (Yes, really.)

Tom will get an additional bonus point for this one because it includes earnings strategy – and hopefully we’ll be able to do him a favor and exit with a bigger official gain than 12%, this time. (Sorry about that, Tom.)

Here’s the PBJ (it’s quite literally a spread…)

The Ghostbusters Have Some PBJ For You Today

This is a “staples” play, which plays into some larger conversations we’ve been having about safe havens, infrastructure, and inflation. Go talk to Garrett if you want the big, big, big picture. He is the macro man and will be trading LIVE at 12:30 pm ET today.

As always, I’ll shut up and let Tom and his team of experts take it away. Here you go:

New Opportunity for a Money Calendar setup with a start date for today:

It’s interesting at times to see what sector companies are classified as. The J. M. Smucker Company (NYSE: SJM) is classified as a Consumer Defensive. In other words, even if the economy is deemed in rough shape and companies may face challenges moving their product, the good thing about an SJM is people will still NEED their products.

It will be tough for folks to skimp on their favorite coffee, their kids’ peanut butter and jelly, or their pet’s dog food.

I am not saying the economy is in bad shape, but I am showing you SJM has a bullish pattern and thus a bullish option trade is going to be shown.

Here’s The Money Calendar data, which is the catalyst for the option trade that will follow.

And now, here is a Call Debit Spread option trade for SJM.

Here’s the details from The Money Calendar machine:

And here’s what to do:


Action to Take:

Sell to Open the SJM March 18, 2022 $135.00 Call and on the same order ticket, Buy to Open the SJM March 18, 2022 $130.00 Call. Pay no more than $2.50 for the spread.

Enter as a Good til Canceled (GTC) order.

I’d love to show you another option trade of the Put Credit Spread variety, but what tends to happen going into an earnings report is the options IV will increase.

If we sold a put credit spread we would want to buy that back “to close” at a lesser price, and with the prospects of IV increasing and that resulting in the option price increasing, buying it back to close for a lesser price becomes more challenging. Let’s stick with this Call Debit Spread.

And now, here’s the earnings strategy that gets Tom his bonus point:

Normally, we buy debit spreads with an expiration just past the end date given from Money Calendar.

In this case, and often times when we are in earnings season, these patterns have end dates that are past an earnings announcement date. This one is past the end date because there are no weeklies for SJM, otherwise we would have chosen a February options expiration.

Earnings are due out from Smucker’s on Feb. 24, before the market open. Win, lose, or draw, by the close of market the trading day before (Wednesday, Feb. 23), it would be wise to close the trade – I would.

Liz again: No worries, my man. I will be ALL over that.

Have a great weekend, everyone! The Trading Today show has been rescheduled for Thursdays, so I’ll see you all mid-week.

Hang loose!


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