Risk Disclaimer

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).

Draft Kings (DKNG)

Draft Kings (DKNG) announced a multi-billion (yes, with a “B”) dollar deal in stock and cash to buy European betting site Entain. Despite the obviously accretive potential for such a deal, many Draft King (DKNG) investors were hoping for short-term gains before being diluted to such an extent. DKNG lost a whopping -15.04% on the news, locking in the Biggest Loser spot.

SPY 9/30 436-433 Put Spread: Options Position

I know, I know – I’ve had such bad luck with options put spreads in 2021 that I banned myself from using them altogether back at the beginning of June, but when the S&P 500 bounced on Tuesday, I decided to buy some short-dated put spreads to cover a potential test of the lows between now and the end of September.

On Tuesday, I bought the 9/30 436-433 put spreads on the SPY (the index that tracks the S&P 500) for $0.973 after fees (each spread cost $97.30 as each contract contains 100 options).

By selling the 433 puts, I’m capping my profits to $3.00 (the difference between the 436 puts I bought and the 433 puts I sold). However, that gives me a 3:1 return if SPY test the low of its recent move which was below $428, offering a decent probability that this trade could pan out between now and expiration on September 30.

For this trade, I’m risking 2.33% of the portfolio for a maximum return of 7.19%, a risk-reward that I naturally wouldn’t take on in my Investments in Play portfolio, but there’s a reason why I called this one Speculation in Play.

Of course, who would have expected the Evergrande situation to basically become a non-started and the Fed to release cryptic minutes which pretty much everyone took as positive?!

Me. I should have expected it. Man, I’m a glutton for punishment with options!

The puts closed the week at $0.24, leaving me down -75.33% on the trade.

Golden Minerals (AUMN): Added to Position

Highly-speculative, lottery-ticket, penny-stock play on the commodities sector, Golden Minerals (AUMN), got hit again on Monday, triggering my second buy order which filled at $0.4547. 

The order lowered my per-share cost -6.32% from $0.5316 to $0.4980. My next buy target is $0.3936 and my next sell target is $1.00.

WARNING: Once again, note that this is one of my super-speculative basket and is in no way a smart or reasonable investment or speculation – this is entirely an experiment on my part and no one should put any money in these stocks that they expect to see.

AUMN closed the week at $0.4501, down -$0.0046 from where I added Monday.