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. These are the trades I exited this week:
Stocks or Exchange Traded Products
None.
Options Trades
Call spread on Enphase Energy, Inc. (ENPH 0.15%↑). Entered at a net debit of $0.83 on 6/16/2023. Expired worthless on 1/19/2024. Loss: 100%.
Call spread on UiPath Inc. (PATH 0.00%↑). Entered at a net debit of $0.65 on 6/16/2023. Expired worthless on 1/19/2024. Loss: 100%.
Call on Tesla (TSLA 0.16%↑). Entered at $2.80 on 12/18/2023. Expired worthless on 1/19/2024. Loss: 100%.
Call spread on Ollie's Bargain Outlet Holdings (OLLI 0.00%↑). Entered at a net debit of $1.24 on 8/30/2023. Exited at a net credit of $0.45. Loss: 64%.
Call spread on Super Micro Computer (SMCI 0.39%↑). Entered at a net debit of $1.27 on 12/19/2023. Exited at a net credit of $0.91 on 1/18/2024. Loss: 41%.
Comments
Stocks or Exchange Traded Products
Another week with no exits, as our core strategy of buying our top ten names and holding them until they get stopped out (and then replacing them with a new top ten name) continues to perform well. As we noted in our most recent top names post, 21 of our 29 top names cohorts so far since we started this Substack have outperformed the market.
Options Trades
The Enphase Energy, Inc. (ENPH 0.15%↑) and UiPath Inc. (PATH 0.00%↑) trades last summer were based on a research report about potential AI winners by the end of the year that didn’t pan out.
The Ollie's Bargain Outlet Holdings (OLLI 0.00%↑) trade was an earnings trade from August. This one may have been profitable had it had a shorter time to expiration. For earnings trades, we no longer use expirations this far out.
Tesla (TSLA 0.16%↑) and Super Micro Computer (SMCI 0.39%↑) were technical trades. I was especially unlucky exiting the SMCI trade on Thursday. On Friday, the company upped its guidance and the stock spiked 35% on the day. Had I held the options trade until Friday, I would have had a >200% gain on it. Fortunately, I’m still holding shares of SMCI as part of our core strategy, as it was one of our top names last year.
Looking Ahead
This year’s been a bit slow so far in terms of trades, as I didn’t find any earnings trades that looked attractive in the last two weeks. I expect that to change next week though, as the volume of companies reporting picks up.