Under Armour and the Best Ad Ever

What happens when you combine Under Armour (UA) clothes, an extremely attractive woman (Heather Mitts) and a song from the best Greatest Hits album ever (Squeeze's "45's and Under")? You get this "Goodbye Girl" ad.



Next up, a home pregnancy test to the tune of "Up The Junction" So this got me to thinking... no one has filed an ETF based on Squeeze songs. Let me be the first.

We already have Under Armour (UA). How about we add:

• Caterpillar (CAT: Cool for Cats)
• Burlington Northern (BNI: Up the Junction)
• World Wrestling Entertainment (WWE: Slap and Tickle)
• Home Depot (HD: Another Nail for My Heart)
• Darden Restaurants (DRI: Pulling Mussels From a Shell)
• The Knot (KNOT: Is That Love)
• Prepaid Legal Services (PPD: If I Didn't Love You)
• Starbux (SBUX: Black Coffee in Bed)
• Nutrisystem (NTRI: Tempted)
• Smith and Wesson (SWHC: Annie Get Your Gun).

Hey... there are more ridiculous ETFs out there.

Let's start (and probably end) with UA. Big breakout yesterday to new highs, and the standard 1999-style volatility run to boot. Yes, as the stock lifted, the July 55 calls started lifting 1:1 even though it remained OTM essentially all day. Meanwhile the July 50 puts stayed at about the same price.

I keep slapping (and tickling) on the same play as this happens. Long upside gamma and paying for it with some short downside gamma. Best cases are a drift towards strike(s). I am short with the volatility crush that would likely follow or a continued momentum blast (think Baidu.com (BIDU)). Worst cases are an overnight stock crush (unlikely in these setups, in my humble opinion) or a drift towards strike(s) I own.