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 Lucid Motors (LCID -1.95%↓). Entered at a net debit of $0.24 on 2/20/2024; expired worthless on 2/23/2024. Loss: 100%.
Call spread on Wayfair (W 6.21%↑). Entered at a net debit of $0.40 on 2/20/2024; exited at a net credit of $0.50 on 2/22/2024. Profit: 25%.
Call spread on Carvana (CVNA 8.64%↑). Entered at a net debit of $0.90 on 8/21/2024; exited at a net credit of $1.98 on 2/23/2024. Profit: 120%.
Call spread on Nvidia (NVDA 6.15%↑). Entered at a net debit of $2.10 on 2/20/2024; exited at a net credit of $4.74 on 2/22/2024. Profit: 126%.
Comments
Overall, this was an encouraging week for our composite score. It kept us out of betting on Teledoc (TDOC 0.00%↑), as we saw in a previous post,
And it put us in winners like Carvana (CVNA 8.64%↑). Carvana’s metrics exemplified the utility of our composite score in handling contradictory signals. Here we had social data and Zacks earnings surprise percentage decidedly negative and Portfolio Armor’s options sentiment positive, and our composite score took those and the other seven metrics into account and gave us a bullish 5.4.
Carvana (CVNA) (5.4)
Social data: -62
PA Options sentiment: Very Bullish.
Setup rating: 3
Valuation rating: 1
F-Score: 5
Recent insider transaction(s): A couple of small net open market sales in September and December.
Zacks ESP: -18.37%
Zacks Ranking: 3
RSI: 57
Short Interest: 32.98%
We ended up more than doubling our money on CVNA and NVDA, and probably could have done the same with W had we been more patient exiting that trade on Thursday.
Our composite score didn’t come through for us on Lucid Motors (LCID -1.95%↓), but in hindsight, betting on an EV maker when industry leader Tesla ( TSLA 0.00%↑) had disappointed recently was probably a bad idea.
As always, this week’s results will go into our spreadsheet and we’ll crunch the numbers which should further improve the predictive value of our composite score.
Looking forward to next week.