March 27, 2020 

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The Week's Biggest Winner & Loser

Twitter (TWTR)

In a week where every position saw gains, it's hard to look at the +5.59% Twitter (TWTR) earned as making it the "Biggest Loser," however, that's the way it went this week!

Portfolio Allocation

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Current Position Performance

This Week’s Moves

Carnival Cruise Lines (CCL): Profit-Taking

Carnival Cruise Lines (CCL) flew into the end of the week along with the rest of the market, triggering sell orders I had in place filling at an average price of $17.69.

The shares sold took +33.41% profits from my average per-share price of $13.26 and a whopping +87.2% in profits from my lowest purchase at $9.45 last week.

The orders also reduced my per-share cost by -10.03% from $13.26 to $11.93, but, more importantly, reduced the allocation size so I can add back in if/when we see another pullback.

My next buy price target for the stock is near its recent low at $8.10 with my next point to take profits at $24.80.

CCL closed the week at $14.41, down -18.54% from my average selling price.

Pinterest (PINS): Profit-Taking

When the market bounced after the passage of the stimulus package, it was time to take profits in Pinterest (PINS), the portfolio's largest position exceeding the 10.00% target allocation.

I made some sells throughout the week landing an average selling price of $15.00 and locking in +17.28% in gains from my average buying price of $12.79 from the purchases made since the start of the selloff. The sale reduced my per-share cost negligibly by -0.97% from $13.45 to $13.32.

My next sell target is $17.74 and my next buy target is $9.19.

PINS closed the week at $14.94, down -$0.06 from my average selling price.

Put Insurance: *Opened SPY 4/3 238-234*

When the markets continued higher on Wednesday following Tuesday's epic 11% gain, the cost of put spreads once again lowered to a point where I felt picking up a little insurance was in order.

Once again, I picked a price-spread that I felt confident the market may pull back to in the week and half before expiration on Friday, April 3: I bought the SPY 4/3 238 Puts and sold the 234 Puts to reduce the cost of the trade.

I chose to risk 3.61% of my portfolio to potentially add +8.03% in YTD profits.

TRADE MAKEUP:

Buy SPY 4/3 238 Puts: -$8.07
Sell SPY 4/3 234 Puts: +$6.83
Total Cost: -$8.07 + $6.83 = $1.24 per Spread

BREAK-EVEN:

Higher Strike Price: $238
Cost: $1.24
Break-Even: $238 - $1.24 = $236.76

MAXIMUM PROFIT:

Lower Strike Price: $234
Break-Even: $236.76
Maximum Profit: $236.76 - $234 = $2.76 per spread
Maximum Gain: $2.76 / $1.24 = 222.58% (nearly 3-1/4 times the investment)

CURRENT STATUS:

Cost of Each Spread: $1.24
Current Value per Spread: $0.91
P/L %: -26.80%