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 a spreadsheet. These are the trades I exited this week.
Clicking on one of the exit cards should take you to the original alert where we mentioned the trade; exits will be documented in the comments on the dates they occurred.
Stocks or Exchange Traded Products
None.
Options
Comments
Stocks or Exchange Traded Products
No exits this week, as I’ve focused on options instead of our basic strategy, which involves buying stocks and ETFs. Nevertheless, the performance of our Top Names remains strong, as you can see below.
Options
Our Revised Exit Process At Work
Three of this week’s partial exits were losses: the INTT and TE put spreads and the SLB long call. We may see more losing trades appear in non-OpEx weeks as a consequence of the weekly options reviews we introduced recently.
Those reviews prompt us to exit positions earlier when no meaningful catalyst remains. The goal is to retain more of the gains on winning trades and reduce the losses on trades that aren’t working.
Most of the week’s other partial exits were profitable. We bought back the short calls on FHN, SKM, and ZM after retaining most of their premiums, reopening the upside on their longer-dated calls. We also closed profitable put spreads on PBR, IPSC, FTI, and EQNR, reducing the risk in those positions while their call-side upside remained open.
The strongest results came from our two full exits. HP and CF began as 4-leg hybrid combos. After their short calls and put spreads were closed, their longer-dated calls continued as uncapped runners. Those completed trades returned 91% and 98% on maximum risk, respectively; their returns on premium were 344% and 488%. Recognizing losses earlier while giving our strongest winners room to run is exactly what these recent process improvements are intended to accomplish.