Exits, 5/9/2025
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
Puts on Arm Holdings (ARM -0.40%↓). Bought for $1.82 on 4/2/2025; (second half) expired worthless on 5/9/2025. Loss: 100%.
$38 Strike Put on Robinhood Markets (HOOD 0.00%↑). Sold for $4.30 on 4/3/2025; expired worthless on 5/9/2025. Profit: 11.3%.
Call spread on Palantir Technologies (PLTR -2.15%↓). Entered at a net debit of $1.60 on 3/5/2025; exited at a net credit of $4 on 5/6/2025. Profit: 150%.
Comments
Stocks or Exchange Traded Products
No exits this week, but since we started this Substack in December of 2022, our top names have averaged returns of 17.03% over the next six months, versus SPY’s average of 10.75%.
Options
The ARM 0.00%↑ puts were the second half of a trade. I sold the first half for a 120% gain on April 3rd.
My biggest mistake here was with HOOD 0.00%↑. When I sold that put on it at the end of March, I wrote this about it:
I’m lowering the strike on these HOOD calls by $2. This puts our break even on the stock at $34, which is about its 200-day exponential moving average, which seems like a plausible near-term bottom for it.
The stock is Robinhood Markets (HOOD 0.05%↑), which I think would be a great long term holding if we can get it in the $30s. So I placed a GTC order to sell the $38 strike put on it expiring on May 9th for $4. If that put gets exercised, I will have effectively bought the stock for $34. The max gain on one contract is $400, the max loss is $3,400 (assuming the put gets exercised, and then the stock goes to zero), and the break even is with HOOD at $34.
This trade hasn’t filled yet. This trade filled at $4.30 on 4/3/2025.
Here’s the mistake I made there. I’ve been risking $300-$500 typically on options trades. there I risked a lot more, which is fine, but: If I was willing risk more—and I thought HOOD was close to a bottom—I should have bought a few OTM calls on it too. Hood closed at $54.65 today. Had I bought $40 or $45 strike calls expiring today on April 3rd, that probably would have been a 1,000% or 2,000% gain. Next time I’m confident enough to sell puts on a stock, I’ll also buy some OTM calls.
HOOD, incidentally, was a Portfolio Armor top ten name back then. The current Portfolio Armor top ten names are updated daily for subscribers on the Portfolio Armor website and iPhone app.
