Trump Trade Update

Exceeding our expectations so far.

Nov 12, 2024

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Bigger And Faster Than We Expected

Last Monday, we opened a call spread on Tesla (TSLA 0.00%↑), which was both one of our system’s top ten names, and a “Trump trade”, given Elon Musk’s alliance with Trump. Our bet was on the stock hitting $350 by next December. This was the "less-contrarian long term trade" mentioned below.

Trade Alert: AI

Portfolio Armor

Nov 4

At The Risk Of Looking Stupid…

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As it happened, Tesla hit $350 today.

Clearly, we weren’t bullish enough.

Leaving Money On The Table On Monday

Because the Tesla trade was a call spread, it wasn’t feasible to take profits on it on Monday. However, I had two 200% exits on straight call trades, but it still felt like leaving money on the table.

Options

Calls on Robinhood Markets (HOOD 3.02%↑). Entered at $2.30 on 10/31/2024; exited (half) at $7 on 11/11/2024. Profit: 204%.
Calls on Bit Digital (BTBT 5.43%↑). Entered at $0.75 on 9/13/2024; partial exit on 11/11/2024 at $2.30. Profit: 207%.

Getting More Aggressive On Tuesday

On Monday night, there at least three “Trump trades” in our daily top ten names. On Tuesday, I plan to place bullish bets on all of them. This time, we’ll use options expiring this year, so we’ll be able to take profits sooner.

If You Are Concerned About Downside Risk

If you’re not as bullish, as a reminder, you can download our iPhone hedging app by clicking on the QR code below or aiming your iPhone camera at it.