The Portfolio Armor Substack

The Portfolio Armor Substack

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The Portfolio Armor Substack
The Portfolio Armor Substack
Trade Alert

Trade Alert

Entering a new bearish bet; exiting two.

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Portfolio Armor
Feb 16, 2023
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The Portfolio Armor Substack
The Portfolio Armor Substack
Trade Alert
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Core Strategy Reminder

Before we get to today’s bearish trades, a quick reminder: as always, I’ll be posting this week’s top ten bullish names tonight, everyone following our core strategy (That’s when we hold equal dollar amounts of Portfolio Armor’s top ten names with a trailing stop, and replace them with current top names as they get stopped out).

Exiting A Bearish Bet

In a trade alert a couple of weeks ago, I mentioned that I had bought more puts on Bed Bath & Beyond (BBBY) when its shares had spiked to $5.86. It’s trading at $1.81 as I type this, and I’m selling those puts not because my view on the underlying stock has changed, but because the options are getting closer to expiration. That’s the same case with the other bearish bet I’m exiting.

Entering A New Bearish Bet

This stock is up more than 80% year-to-date, as part of the recent rally in low quality names.

Its Altman Z-Score is negative (scores below 1.8 indicate a risk of bankruptcy). That’s today’s new bearish bet. Details below.

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