Exits, 12/9/2023
Exits, 12/9/2023
How we did on the trades we exited this week.
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
Put spread on Chewy (CHWY 0.00%↑). Entered at net debit of $0.24 on 12/6; expired worthless. Loss: 100%.
Call Spread on Broadcom (AVGO 0.00%↑). Entered at a net debit of $0.80 on 12/4; exited at a net credit of $0.10 on 12/8. Loss: 88%.
Call spread on AutoZone (AZO 1.70%↑). Entered at a net debit of $4.25 on 12/4; exited at a net credit of $7.30 on 12/6. Profit: 72%.
Comments
The Chewy and AutoZone trades were made using the same signals we used for our earnings trades last week.
The Chewy trade was a vertical spread expiring on December 8th buying the $18.50 strike calls and selling the $18 strike calls for a net debit of $0.24. It could have been a profitable trade if I weren’t so greedy, setting my exit price at $0.48. Had I set my exit price at $0.40, I probably could have gotten out for a ~67% at the open on Thursday.
That said, our aim with our signals is to find stocks that will sustain their predicted moves for the rest of the week post-earnings, so our timing doesn’t have to be so precise with our exits. In the case of Chewy, it ended the week with a 5.57% gain, and our spreadsheet will take that into account when we crunch the numbers this weekend. We’ll use those updated numbers to adjust the weightings of our signals for next week’s trading.
The Broadcom trade was one of four experimental trades I mentioned at the beginning of the week:
A correspondent of mine on X (the site formerly known as Twitter) is the CEO of an Israeli technology company that developed an artificial intelligence to predict coronavirus waves. They’ve since applied their technology to other sorts of predictions, and are interested in applying it to stocks. So I shared the image at the top of this post with them, and they gave me two bullish and two bearish predictions for this week. I’ve filled in our other signals for them out of curiosity and for tracking purposes, but I placed these trades based on their signals, not mine.
So far, it looks like that experiment is going 0-for-4, with the other three trades expiring next week.