Exits, 7/20/2024
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
Abercrombie & Fitch (ANF 0.40%↑). Bought at $171.54 on 7/8/2024; stopped out at $150.79 on 7/18/2024. Loss: 12%
Options trades
Call spread on Tesla (TSLA -0.61%↓). Entered at a net credit of $1.50 on 7/11/2024; options expired worthless on 7/19/2024. Profit: 150%.
Comments
Stocks or Exchange Traded Products
Despite getting stopped out on ANF, our core strategy continues to perform well, driven by the performance of our top ten names.
So far, we have 6-month returns for 56 weekly top names cohorts since we started this Substack at the end of December, 2022, and as you can see here, our top names have averaged returns of 23.06% over the next six months, versus SPY’s average of 13.1%.
By exiting our losers early and letting our winners run, our core strategy can generate even better performance than that.
Options trades
As I wrote about this one last week,
I’ve removed the paywall on this morning’s trade alert, so you can read it below, but let me quickly explain why I placed this trade. No, I didn’t know Tesla would postpone the development of its robotaxi, but I knew this:
Tesla’s RSI (Relative Strength Index) of 87 indicated the stock was overbought.
After closing in the green for 11 or 12 straight sessions, the stock seemed like it was ready for a pullback.
The net credit available on this call spread so close to the money was too good to pass up.
Tesla closed at $239.20 on Friday, so this one worked out well.