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
MongoDB (MDB 0.00%↑). Bought for $360.46 on 8/11/2023; sold for $416.43 on 1/29/2024. Profit: 15.7%.
Options Trades
Put spread on Mondelez (MDLZ 0.00%↑). Entered at a net debit of $0.40 on 1/29/2024; expired worthless on 2/2/2024. Loss: 100%.
Put spread on Ericsson (ERIC 0.00%↑). Entered at a net debit of $0.35 on 1/22/2024; exited at a net credit of $0.40 on 1/31/2024. Profit: 14%.
Call spread on Canada Goose (GOOS 8.59%↑). Entered at a net debit of $0.25; exited at a net credit of $0.30 on 2/1/2024. Profit: 20%.
Put spread on Polaris (PII 0.79%↑). Entered at a net debit of $1.50 on 1/29/2024; exited at a net credit of $1.90 on 1/30/2024. Profit: 27%.
Call spread on Boot Barn Holdings (BOOT 12.86%↑). Entered at a net debit of $2.50 on 1/31/2024; exited at a net credit of $3.59 on 2/1/2024. Profit: 44%.
Call spread on Sofi Technologies (SOFI -1.64%↓). Entered at a net debit of $0.18 on 1/24/2024; exited at a net credit of $0.41 on 1/29/2024. Profit: 127%.
Comments
Stocks or Exchange Traded Products
Overall, the performance from our core strategy has been excellent, so I have relatively few, infrequent exits from stocks where I got stopped out. Below is the performance of my current top names holdings as of Friday’s close.
Stocks or Exchange Traded Products
I left some money on the table this week by exiting trades too early at prices too low, particularly with Canada Goose (GOOS 8.59%↑) and Boot Barn Holdings (BOOT 12.86%↑). Life intervenes sometimes: I closed out both positions before a long dental appointment on Thursday. In general though, you can often get better returns than I do in the same trades, because I place a lot of limit orders ahead of time. For example, the Sofi Technologies (SOFI -1.64%↓) trade I entered at $0.18 was available at $0.14 shortly after I posted it.
One That Got Away
These were my research notes on META from earlier in the week:
Meta Platforms (META) (2.3)
Social data: -54
PA Options sentiment: Very Bullish
Setup rating: 3
Valuation rating: 6
F-Score: 4
Recent insider transaction(s): Net open market sales peaking in December, but it looks like a lot may be Zuckerberg diversifying.
Zacks ESP: 0.79%
Zacks Ranking: 2
RSI: 77
Short Interest: 1.22%
I was wary of betting on this one, given its negative social data score, but I should have put more faith in our composite score, which takes that—and everything else—into account. META soared more than 20% on Friday after crushing earnings and initiating a dividend.
As always, the returns and data from the stocks we researched this week, including META, have gone into our spreadsheet, and we will recalculate the predictive power of each of our ten metrics, and then adjust their weightings in our composite scores on our potential earnings trades next week.