Exits, 8/30/2024
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
None.
Options trades
Call spread on PDD Holdings (PDD 2.72%↑). Entered at a net debit of $0.30 on 7/26/2024; expired worthless on 8/30/2024. Loss: 100%.
Call spread on Nvidia (NVDA 0.40%↑). Entered at a net debit of $0.33 on 8/27/24; exited at a net credit of $0.02 on 8/29/2024. Loss: 94%.
Call spread on Trip.com Group (TCOM 1.60%↑). Entered at a net debit of $0.33 on 7/31/2024; exited at a net credit of $0.74 on 8/28/2024. Profit: 124%.
Call spread on Salesforce (CRM -4.02%↓). Entered at a net debit of $3.30 on 6/17/2024; exited at a net credit of $8.79 on 8/29/2024. Profit: 166%.
Comments
Stocks or Exchange Traded Products
No exits this week, but it looks like our security selection process ran into a rough patch in February. Nevertheless, since we started this Substack our top ten names have averaged 21.22% returns over the next 6 months. You can see all the weekly returns so far here.
Options
PDD Holdings had great fundamentals when we placed that trade. It still does, but reading between the lines of its guidance, it sounds like the Chinese government is pressuring it to upscale its marketplace business by cracking down on lower-quality merchants. That guidance led to the stock tanking by nearly 30% post-earnings.
The Nvidia trade was a coinflip bet on its earnings this week that came up tails. I probably flipped that coin to try to make up for the PDD loss, forgetting I had a couple of other earnings trades hitting this week.
Trip.com Group and Salesforce both released earnings this week, but the closest expirations we could get for our trades were in September. So we took the bird in hand with these gains rather than holding out for ~200% gains next month, but risking the stocks would slide between now and then.
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