December 24, 2020
The positions in this portfolio are incredibly risky and extremely volatile.
No one at Get Irked is a professional financial adviser (or a doctor), so consult with your own financial adviser to see if any of these positions fit your risk profile (and stomach).
Click image to bring up larger version.
The Week’s Biggest Winner & Loser
Plug Power (PLUG)
Investors just can’t get enough of the Electric Vehicle (EV) space and Plug Power (PLUG), the makers of hydrogen cells, gets lapped up each time. This week, PLUG locked in +12.49% in gains to earn the Week’s Biggest Winner spot.
Tradeweb Markets (TW)
Tradeweb Markets (TW) made a stab at breaking its all-time high last week and failed. Boy, did it ever fail, losing another -7.28% this week to crash to the spot of the Week’s Biggest Loser.
Target Position Size
Current Position Performance
Tradeweb Mkts (TW)
1st Buy: 4/8/2019 @ $39.22
Current Per-Share: $7.04
1st Buy: 5/16/2019 @ $25.72
Current Per-Share: -($58.79)*
1st Buy: 1/10/2019 @ $19.54
Current Per-Share: (-$107.72)*
1st Buy: 2/26/2019 @ $23.23
Current Per-Share: (-$142.16)*
Virgin Galactic (SPCE)
1st Buy: 10/31/2019 @ $9.87
Current Per-Share: (-$0.15)*
Grow Gen. (GRWG)
1st Buy: 10/30/2020 @ $16.04
Current Per-Share: (-$0.19)*
Plug Power (PLUG)
1st Buy: 10/30/2020 @ $14.28
Current Per-Share: (-$0.28)*
1st Buy: 3/12/2020 @ $76.94
Current Per-Share: (-0.07)*
1st Buy: 10/30/2019 @ $29.79
Current Per-Share: (-$45.02)*
Carnival Cruise (CCL)
1st Buy: 3/12/2020 @ $17.25
Current Per-Share: (-1.01)*
Airlines ETF (JETS)
1st Buy: 5/14/2020 @ $11.30
Current Per-Share: (-$3.72)*
General Electric (GE)
1st Buy: 3/6/2020 @ $9.40
Current Per-Share: $5.07
1/29 SPY Put Spreads
Current Value: $2.17
* Indicates a position where the capital investment was sold.
Profit % for * positions = Current Gross Profit / Original Capital Investment
Recovery Speculation Basket
What is the Recovery Speculation Basket?
The Recovery Speculation Basket (“Recovery Spec”) represents stocks that will thrive if vaccines are released quickly and we return to normal but have the likelihood of collapsing if more lockdowns occur. These positions are too speculative to have their own allocation and share a single allocation.
Currently, my Recovery Spec stocks are as follows: the Airlines Exchange Traded Fund (JETS) and Carnival Cruise Lines (CCL). They are listed as a single allocation in the portfolio breakdown chart each week.
This Week’s Moves
SPY Put Spread Insurance: Roll-Out
When Christmas Eve arrived and the SPY was still flirting with all-time highs, Trump started talking about potentially vetoing the much-needed stimulus bill and the UK discovered a more contagious strain of Covid-19.
With all this potential volatility ahead, plus with the VIX (the “Fear Index”) less than 22, options pricing was surprisingly low. So low, in fact, that I decided to roll out my SPY put spreads expiring next week, raising the spread and extending expiration to the end of January 2021.
I closed my SPY 12/31 343-338 put spreads and rolled the remaining proceeds into the SPY 1/29 367-359 put spreads, increasing the overall cost of each spread to $4.8254 (or $482.54 as option contracts are sold per 100 shares).
The maximum profit for these spreads is $800.00 ($367 – $359 = $8.00 * 100 = $800) but since my cost for these spreads is now $482.54 per spread, I stand to make a maximum profit gain of +65.79%.
However, I don’t intend to make full profit on these spreads. I believe we’ll see some sort of selloff either in December, or, barring that, in January, as investors decide to take profits at these sky-high levels on any risk event.
Should that happen, I will use the spreads as insurance against that selloff, and I will be satisfied selling them at break-even price or slightly above for the trade (although I’ll aim for profits, of course) as it will replace the losing value that has been slowing my Year-To-Date gain growth throughout November and December.
Current Value: $2.17 per spread
Want Further Clarification?
As always, if you have questions about any of my positions or have positions of your own that you’re curious about – feel free to leave a comment below!
See you next week!
Ways to give back to GetIrked:
If you use Brave, you can also use the Tip function to tip me in Basic Attention Token (BAT).
Disclaimer: Eric "Irk" Jacobson and all other Get Irked contributors are not investment or financial advisers. All strategies, trading ideas, and other information presented comes from non-professional, amateur investors and traders sharing techniques and ideas for general information purposes.
As always, all individuals should consult their financial advisers to determine if an investing idea is right for them. All investing comes with levels of risk with some ideas and strategies carrying more risk than others.
As an individual investor, you are accountable for assessing all risk to determine if the strategy or idea fits with your investment style. All information on Get Irked is presented for educational and informational purposes only.