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 Marathon Digital (MARA 0.00%↑). Entered at a net debit of $0.23 on 3/14/2024; expired worthless on 5/17/2024. Loss: 100%.
(Adjusted) Puts on MBIA (MBI 0.00%↑). Bought at $0.65 on 11/15/2023; expired worthless on 5/17/2024. Loss: 100%.
Comments
Stocks or Exchange Traded Products
No exits this week, but our core strategy continues to do well, driven by the outperformance of our top names. Our most recent weekly top names cohort for which we have 6-month returns is the one from November 16th of last year. It finished up 36.87%, versus SPY 0.00%↑ which was up 17.9% over the same time frame.
Screen capture via the Portfolio Armor web app.
We now have 6-month returns for 47 weekly top ten names cohorts since we started our Substack in December of 2022. Our top ten names have returned 23.26% over the average of these 47 6-month periods, versus SPY's average of 12.49%.
Options
The Marathon Digital (MARA 0.00%↑) call spread was the bullish part of a market neutral bet on bitcoin. The MBIA (MBI 0.00%↑) puts were a bet against a bond insurer that had just posted an earnings miss on top of terrible looking fundamentals. Then it issued an extraordinary cash dividend a month or two later that blew up the thesis and the trade.