RE: AVGO
[{"sender": "Paul Barrett [paul@alphagroupcapital.com]", "recipients": ["jeffrey E. [jeevacation@gmail.com]", "Richard Kahn"], "timestamp": "7/13/2018 6:57:15 PM", "subject": "RE: AVGO", "body": "We own 8000 shares on the thesis that their growing exposure to data center capex spend would be a big positive for the stock.\n\nRecommendation: Keep the stock and buy Aug $200 puts on the 8000 shares costing $6.50 or $52,000. Nothing has changed regarding their core business. Data center spending is not going to change based off this M&A transaction. However if I am wrong and the market further penalizes the stock at least our losses are contained. The stock has dropped $40 and I think we could easily recoup our premium if the market buys into the CEO's reason for the merger.\n\nIf I never had a position I would absolutely buy the stock using options. I would be selling October $185 puts and buying Oct $220 calls costing 50c/share.\n\nPaul"}, {"sender": "jeffrey E. <jeevacation@gmail.com>", "recipients": ["Paul Barrett"], "timestamp": "Friday, July 13, 2018 2:18 PM", "subject": "Re: AVGO", "body": "Again?? How many puts ? What are the alternatives. The fact that you own the stock at a higher price is affecting your decision. Sorry. This is just ridiculous!!! Would you buy the stock here . ???? If you would would you also buy puts ??? My patience is at its end"}, {"sender": "Paul Barrett", "recipients": [], "timestamp": "Fri, Jul 13, 2018 at 2:13 PM", "subject": "Re: AVGO", "body": "My initial recommendation this morning was to buy the $200 Aug puts. I still think that is the best idea. The stock is now down 16% on a deal that no one fully understands. The CEO has a good track record regarding mergers. So I think it makes sense to keep the stock and own protection for the next 35 days until we hopefully get more clarity from management.\n\nPaul Barrett"}]