Exits: 8/2/2024
How we did on the trades we exited this week.
Dids/Pexels
A Market Meltdown PSA
If you’re concerned about downside risk for positions you already own, consider hedging. As a reminder, you can download our iPhone hedging app here, or by aiming your iPhone camera at the QR code below.
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
Terawulf (WULF 0.00%↑). Bought at $4.64 on 7/26/2024; stopped out at $3.75 on 8/2/2024. Loss: 19%.
Sea, Ltd. (SE 0.00%↑). Bought at $68.78 on 6/3/2024; stopped out at $61.79 on 8/2/2024. Loss: 10.2%.
Options trades
Call spread on Block (SQ -3.79%↓). Entered at a net debit of $0.33 on 7/5/2024; expired worthless on 8/2/2024. Loss: 100%.
Call spread on Marathon Digital (MARA -5.51%↓). Entered at a net debit of $0.31 on 7/24/2024; expired worthless on 8/2/2024. Loss: 100%.
Call spread on Coinbase (COIN -6.10%↓). Entered at a net debit of $0.80 on 7/23/2024; expired worthless on 8/2/2024. Loss: 100%.
Call spread on Leidos Holdings (LDOS -5.12%↓). Entered at a net debit of $1.35 on 6/11/2024; expired worthless on 7/30/2024. Profit: 70%.
Call spread on Meta Platforms (META -2.95%↓). Entered at a net debit of $1.50 on 7/17/2024; Exited at a net credit of $3.05 on 8/1/2024. Profit: 103%.
Call spread on Carvana (CVNA -3.80%↓). Entered at a net debit of $0.30 on 6/14/2024; exited at a net credit of $0.96 on 8/1/2024. Profit: 220%.
Comments
Stocks or Exchange Traded Products
We ran into two headwinds this week, the market correction and the Bitcoin correction (WULF is a Bitcoin miner). Nevertheless, our core strategy continues to perform well, driven by the performance of our top ten names.
So far, we have 6-month returns for 58 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 22.38% over the next six months, versus SPY’s average of 13.02%.
By exiting our losers early and letting our winners run, our core strategy can generate even better performance than that.
Options trades
The Bitcoin correction headwind hit us on two of our options trades, MARA (a Bitcoin miner) and COIN (a sort of brokerage for Bitcoin and other cryptocurrencies).
Looking ahead
We took advantage of the market correction today to add a few bullish bets,
Including on a couple of names that have some Bitcoin exposure, but for now, I’m not planning on opening any more positions on names that have a lot of Bitcoin exposure, like the miners or Coinbase. I just don’t have any insight into when Bitcoin is going to rally again. I can’t think of a major catalyst for it before the election, but if that changes, I’ll reconsider.