Dids/Pexels
This Week’s Trade Exits
As soon as I exit a trade, I note that in the comments of the post where I first mentioned the trade; at the end of the week, I try to track them all in one post. Starting in July, 2024, I have also been tracking them in this spreadsheet. These are the trades I exited this week.
Stocks or Exchange Traded Products
None
Options
Call spread on Sociedad Química y Minera de Chile (SQM 1.14%↑). Entered at a net debit of $0.83 on 6/13/2024; expired worthless on 10/18/2024. Loss: 100%.
Put spread on Reddit (RDDT 6.24%↑). Entered at a net debit of $1.65 on 8/8/2024; expired worthless on 10/18/2024. Loss: 100%.
Puts on Blue Ridge Bankshares (BRBS -1.58%↓). Bought for $0.45 on 5/7/2024; expired worthless on 10/18/2024. Loss: 100%.
Call spread on MP Materials (MP 1.72%↑). Entered for a net credit of $2.02 on 9/30/2024; expired at a net debit of $2.50 on 10/18/2024. Loss: 100%.
Call spread on Summit Therapeutics (SMMT 0.00%↑). Entered at a net debit of a $0.36 on 9/25/2024; expired worthless on 10/18/2024.
Call spread on Cintas (CTAS 1.40%↑). Entered at a net debit of $0.80 on 9/18/2024; exited at a net credit of $1.20 on 10/14/2024. Profit: 50%.
Calls on IAMGOLD (IAG 16.52%↑). Bought for $0.75 on 10/8/2024; sold for $1.50 on 10/18/2024. Profit: 100%.
Comments
Stocks or Exchange Traded Products
No exits this week. So far, we have 6-month returns for 68 weekly top names cohorts since we started this Substack in December of 2022. Since then, our top ten names have averaged 18.58% over the next 6 months, versus 12.54% for the SPDR S&P 500 Trust ETF (SPY 0.00%↑).
Options
SQM: Betting on a lithium miner given the demand for electric vehicles made sense theoretically, but there seems to be a lot of lithium in the world. Lithium, like domestic natural gas, seems to be a commodity that’s in demand but has lots of supply.
RDDT: Just got this one wrong.
BRBS: When we placed our short bet on this regional bank with weak fundamentals, the Fed’s rate cuts were still over the horizon. The 50bps cut seems to have taken some pressure off of these banks.
MP: The second time I tried this kind of bearish trade, betting against an overbought stock with weak fundamentals. I’m 0-for-2 on these. In general, it’s been a tough market for short bets over the last few weeks.
SMMT: The “holy grail” technical pattern on this one didn’t pan out. We do have a longer-term trade opened on this one though.
CTAS: This one didn’t move much post-earnings, but the stock had low valuation heading into earnings, and that probably helped us get out with a 50% gain.
IAG: In the past, we’ve set GTC orders to exit half of our calls at price that would give us a 200% gain; I didn’t expect this gold miner to move so quickly, so soon (it was up nearly 17% on Friday), so I aimed for a 100% gain with half of my IAG calls. Maybe we’ll get a multi-bagger gain on the other half.
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