Exits, 9/8/2023
How we did on the trades we exited this week.
Dids/Pexels
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. These are the trades I exited this week:
Stocks or Exchange Traded Products
None
Options Trades
Puts on Kirklands (KIRK -0.46%↓). Bought at $0.65 on 9/5; sold at $0.80 on 9/8. Profit: 23%
Calls on BioLineRx (BLRX 1.84%↑). Bought at $0.10 on 8/18; exited half of those calls at $0.35 on 9/5. Profit: 350%
Comments
On the stock side, no exits is always good news, as it means we didn’t get stopped out of any positions. The performance of Portfolio Armor’s top ten names this year continues to be strong, with 8 of our last 10 top names cohorts out performing the market.
Top Names, 9/7/2023
A Top Names Performance Update Before we get to this week’s top ten names, let’s at the final, 6-month performance of our top ten names from March 2nd. Over the next six months, our top ten names from March 2nd were up 17.95%, on average, while the SPDR S&P 500 Trust
On the options side, we had a nice gain on half of our biotech bet.
Trade Alert: A Biotech Lottery Ticket
Looks like real science. Why not. Another Biotech With A Catalyst Coming Up Last month, we bought a lottery ticket on a tiny biotech, based on a post by a scientist-investor whose work I follow. That one didn’t work out: the catalyst there was an FDA decision, following which the stock ended up plummeting over 80%, which will cause our options trade to e…
As far as this week’s earnings trades, here were our notes heading into this week.
The Kroger (KR 0.00%↑) trade would have worked if it had filled. I probably should have bid $0.49 for that call spread. The GameStop ( GME 0.00%↑ ) trades would have worked too, but that’s been a hard stock to get decently-priced options on. Rent the Runway (RENT 0.00%↑) was a coin flip that went against us. Weak fundamentals heading into this quarter’s earnings (including a Piotroski F-Score of 3), but lots of short interest and the potential for a big upward move had the company guided higher today. G-III Apparel Group (GIII -0.59%↓) went against us too. One of the talented traders I follow on Twitter has a thesis that there will be continued demand for luxury products from the top 3 quintiles of American earners; maybe this was an example of that. The RENT and GIII options don’t expire this week, so we didn’t exit those positions.
We did get a fill today on our 2nd post-earnings trade that we placed a limit order for in this post a couple of weeks ago.
Trade Alert: Earnings, 8/23/2023
Who wants fake milk and meat? Our Newfound Selectivity Starting last week, we’ve been more selective about placing earnings trades. This week, for example, we skipped the first four. Overall, that turned out to be the right move: only one of those four, the bearish bet against