Exits, 2/21/2025
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. 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
Put spread on Mercury General ( MCY -0.13%↓). Entered at a net debit of $1.35 on 1/14/2025; expired worthless on 2/21/2025. Loss: 100%.
Calls on Bit Digital (BTBT -6.10%↓). Bought for $0.55 on 2/3/2025; sold for $0.05 on 2/21/2025. Loss: 91%.
Put spread on Edison International (EIX 2.85%↑). Entered at a net debit of $1.30 on 1/14/2025; exited at a net credit of $3 on 2/19/2025. Profit: 131%.
Call spread on Carvana (CVNA 3.52%↑). Entered at a net debit of $3.32 on 1/7/2025; exited at a net credit of $9.74 on 2/20/2025. Profit: 193%.
Calls on QIFU Technologies ( QFIN 1.15%↑). Bought for $2.15 on 10/1/2024; sold (second half) for $10 on 2/18/2025. Profit: 365%.
Comments
Stocks or Exchange Traded Products
No exits this week, but our core strategy of buying our top ten names, putting trailing stops of 15% to 20% on them, and replacing them with current top names when we get stopped out, continues to perform well, driven by the performance of our top names.
You can see how all of the top 10 names cohorts have done since I launched this Substack at the end of 2022 here.
Options
Exits 1 and 3 were both bearish bets on companies we expected would be negatively impacted by the Los Angeles fires, a local property insurance company, and the local electric utility. The bet against the insurance company failed.
Exit 2 was on a Bitcoin miner. Bitcoin languishing since didn’t help with that one. The others worked out.
One thing I’m proud of this week is not putting an additional bullish bet on Carvana ahead of its earnings. We would have lost money on that. Sometimes the best trade is not making a trade.
Limiting Your Downside Risk
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Our Top Names Every Day
Although I post Portfolio Armor’s once per week here, they’re available daily on the Portfolio Armor website and iPhone app (as an in-app subscription).