Trade Alert

Out of our Carvana puts for a 51% gain.

Portfolio Armor

Mar 10, 2023

Still Bearish, But Keeping Expiration in Mind

In a Trade Alert last month, I mentioned buying the $12.50 strike puts on Carvana Co. (CVNA).

The Portfolio Armor Substack

Trade Alert

So Much For Tight Financial Conditions As I noted yesterday (That Was Unexpected), Fed Chairman Powell’s claim that financial conditions had tightened significantly got pushback from market observers, including Sven Henrich below. During today’s continuation rally, another observer quipped that it’s as if Powell had announced quantitative easing yesterday. Some low quality names, including ones that may be at risk of bankruptcy, are spiking hard today. I took the opportunity to bet against one of them today. Details below…

2 years ago · 2 likes · Portfolio Armor

As I mentioned in a subsequent post, I’m still bearish on Carvana, but with these put options expiring next month, I decided to take profits now. I sold them today for $5.15. Since I initially bought them for $3.40, that’s a 51% gain in slightly over one month.

I have limit orders on a few potential entries open now, and will post another trade alert as soon as one fills.

Trade Alert

Out of our Carvana puts for a 51% gain.

Still Bearish, But Keeping Expiration in Mind

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