On the chance that many Christmas stockings will be stuffed with Ruger handguns this year, we can position ourselves to benefit from a powerful rise in the stock. The rally target we’ll use lies at 99.72 (see inset), and I’m recommending eight Dec 20 95/100/105 call butterflies to leverage a possible move to that number. Bid 0.25 for the time being, but plan on adjusting the price if none come at 0.25. This gambit is effectively a straddle on the election, since urban rioting, looting and violence are likely to erupt if Trump wins, but there is also the prospect of police departments across the country being defunded with Biden in the White House and a consequent unprecedented outbreak of lawlessness. We will look for longer-term ‘weaponization’ plays if that’s the case, since Biden/Harris are hellbent on ending the America Experiment, including a criminal justice system that an army of hard-left lawyers heave been systematically dismantling for years. _______ UPDATE (Nov 2, 8:36 p.m.): The 0.25 bid was midway between a negative bid and positive offer (-040 / 0.95), although in this instance, paying the midway-price proved to have been no bargain. Regardless, the dime’s difference between a good price and a lousy one won’t likely change the outcome. I’ll track the spread at 0.25, as is customary. It will come alive if and when glass starts shattering again in the cities. For now, offer half of the spreads to close for 0.50, good till canceled. _______ UPDATE (Nov 4, 11:58 p.m.): Ruger shares dove on Biden’s apparent victory, and so did our call options. A lot could happen between now and Dec 20, when they expire, so we needn’t give up on the position. However, and for what it’s worth, the most bullish thing I could imagine for our call options at the moment would be for Trump’s legal team to claw its way to 270 electoral votes. That would touch off a bloody civil war overnight, one should think. ______ UPDATE (Nov 8, 9:44 p.m.): To avoid cluttering up the home page, this tout will be archived until such time as RGR touches p=79.87 of the pattern we’ve used to get long.
RGR – Sturm Ruger (Last:62.87)