April 24, 2020 

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The Week's Biggest Winner & Loser

Revolve Group (RVLV)

Revolve Group (RVLV) dropped -10.13% giving it the week's Biggest Loser recognition. The timing of this piece of garbage was nuts - after reporting a bad quarter, I was following the Three Day Rule before taking the loss. Well, Day 3 was the beginning of the March selloff...

Here we stand, down -42.48% YTD. Yuck.

Portfolio Allocation

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Current Position Performance

This Week’s Moves

Chevron (CVX): Profit-Taking

When Chevron (CVX) made a run at its recent highs on Thursday, I decided it was time to take some profits, selling some of the shares I bought at $55.56 back on March 18 for a +58.12% gain at $87.85.

The sale lowered my per-share cost by -15.97% from $66.58 to $55.95. My next sell order will pull the rest of my capital out of the position at $110-115. My next buy target is near a 50% retracement of CVX's run from March low's: $67.15.

CVX closed the week at $87.01, down -0.96% from where I sold on Thursday. 

Pinterest (PINS): Profit-Taking

Pinterest (PINS) has made a pretty substantial recovery since its March lows, leading me to once again take small profits when it rose throughout the week with sell orders filling on Wednesday at $18.06 and more on Friday at $19.53 and $20.64, giving me an average selling price of $19.41.

This week's orders sold shares I bought at $10.48 back on March 27, locking in 85.21% in profits and lowering my per-share cost -7.85% from $12.99 to $12.40. Even after this week's sales, I still need to take profits in this position as it is the largest in the portfolio at nearly 11%, exceeding the current target position allocation of 9.09%.

My next sell target is slightly over $23.00 a share, a past point of resistance, and my next buy target is back at $10.10-$10.30, the lows of March.

PINS closed the week at $20.62, up +6.23% from my average selling price.

Put Insurance: *Opened SPY 5/29 278-275*

The markets have rocketed from the lows, and despite the support of the Federal Reserve, there are too many variables for me to be 100% confident that we won't see a bit of a selloff in May.

So, on Wednesday, I put in a buy order to pick up the SPY 278-275 Put Spread. I learned from my short-term one-week spreads that failed a few weeks ago and opted for spreads expiring on May 29 for under $1.00 a spread (my order filled at $0.9932 per spread). 

I'm risking about 2.75% of the portfolio for a potential 8.33% gain if the market sells off below my 275 put by the end of May.

TRADE MAKEUP:

Buy SPY 5/29 278 Puts: -$11.89
Sell SPY 5/29 275 Puts: +$10.90
Total Cost: -$11.89 + $10.90 = $0.9932 per Spread

BREAK-EVEN:

Higher Strike Price: $278
Cost: $0.9932
Break-Even: $278.00 - $0.9932 = $277.0068

MAXIMUM PROFIT:

Lower Strike Price: $275
Break-Even: $277.0068
Maximum Profit: $277.0068 - $275 = $2.0068 per spread
Maximum Gain: $2.0068 / $0.9932 = 202.54% (more than 3 times the investment)

CURRENT STATUS:

Cost of Each Spread: $0.9932
Current Value per Spread: $0.915
P/L %: -7.87%