April 3, 2020 

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The Week's Biggest Winner & Loser

Carnival Cruiselines (CCL)

Remember all those people trapped on the cruise ships who looked like they were in the 9th circle of Hell? Yeah, somehow, the markets forgot about those guys last week. This week, they remembered... to the tune of a -41.08% drop and a -83.30% YTD loss to lock in the week's Biggest Loser.

Man, I wonder how the buyer at the top must be feeling right now?

Portfolio Allocation

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Current Position Performance

This Week’s Moves

SPY 4/3 Put Spreads: Closed - Complete Loss

After several very successful put spread trades from December 2019 until now, I guess you could say I was due for a loser. 

I put on this insurance play after the market's capitulative sell-off two weeks ago resulted in the substantial rally last week. I ended up being far too early, putting on the insurance about halfway into the rally when the SPY was around $235-240. The rally took the SPY into the low $250s and ended up invalidating the trade.

Given the short time-frame (I purchased spreads with a week-and-a-half expiration date), the lesson I've learned here is that I should have taken the loss early.

I thought (and still think) there's a significant possibility we'll test (and potentially break through) the market's lows, however, it was hubris to think it would happen that quickly - I should have closed out the trade when it still had value and/or rolled the spreads into longer-dated options.

The spreads expired worthless at the market close on Friday, resulting in a -3.77% ding to the portfolio's Year-To-Date profits.

Tradeweb Markets (TW): Profit-Taking

Tradeweb Markets (TW) has been a particularly odd stock throughout the entire pandemic: some days it breaks down with the rest of the market and other days (like Thursday) it holds up and even excels in a market that seems to beat down similar stocks.

On Thursday, TW crossed through a selling target of mine with an order filling at $45.16 to sell some shares I bought on March 18 at $33.70, capturing a 34% gain and lowering my per-share cost by -4.65% from $35.50 to $33.85.

My next sell target is $49.85 and my next buy target is $33.26.

TW closed the week at $45.44, up +0.62% from where I sold on Thursday.