The Choice is Clear: Destruction or Salvation — Choose One

That was an easy one for me. First order of business, I old OAS for a ~30 cent loss. I really don’t have conviction in the oil trade, so it’s gone. My FAZ is getting hammered, because bankers are banking. All of the finnies are running higher into Irma, with Jose upping his power levels to 150mph just behind her.

Does it make sense?

No, especially with the yield curve flat as fuck.

Trust me when I tell you, banks are going lower.

But, in the meantime, there are trades. Like yesterday, I bought AEL — an Iowan life insurance play that was getting mauled because of a hurricane in Florida. That was an easy one.

Now today I have a choice, do I double down in UVE — hoping that Mother Nature spares Florida and saves the insurance industry too?

Or, do I double down in PGTI, hoping for widespread destruction, mayhem, fire in the streets?

As you probably know by now, reading me for years, I chose the latter.

I bought more PGTI — because the world will be a better place with hurricane proof windows. Protect your loved ones — buy better windows. I’d love to be a fucking window salesman in Florida after the storm. I’d make a killing, scaring people to death, handing out safe window pamphlets to kids.

I will leave my UVE intact and hope for the best. Should the storm miss the big cities in Florida, UVE will soar by 20%. If the storm is as bad as people think it’ll be, I expect UVE to go lower.