September 4, 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).
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The Week’s Biggest Winner & Loser
Carnival Cruises (CCL)
What would make anyone buy Carnival Cruiselines (CCL) in the middle of the first selloff in three months? Believe it or not – they’re starting two cruises in Italy this weekend, and, if all goes well, they’re hoping to return cruising to the U.S.
This “Back-to-Normal” play earned CCL +7.67% in a week filled with red, locking in the Biggest Winner spot.
Virgin Galactic (SPCE)
In the middle of a global economic and health crisis, what could be more superfluous than commercial space flight? Not much, and Virgin Galactic (SPCE) proves it by dropping -8.82% this week and earning itself the Biggest Loser spot.
Target Position Size
Current Position Performance
1st Buy: 1/10/2019 @ $19.54
Current Per-Share: (-$5.14)*
1st Buy: 5/16/2019 @ $25.72
Current Per-Share: -($10.25)*
1st Buy: 2/26/2019 @ $23.23
Current Per-Share: (-$44.50)*
1st Buy: 10/30/2019 @ $29.79
Current Per-Share: (-$0.01)*
Virgin Galactic (SPCE)
1st Buy: 10/31/2019 @ $9.87
Current Per-Share: (-$0.15)*
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: (-$1.26)*
Tradeweb Mkts (TW)
1st Buy: 4/8/2019 @ $39.22
Current Per-Share: $21.50
1st Buy: 3/12/2020 @ $76.94
Current Per-Share: $55.18
SPY Sep 30 Put Spread
Current Value: $2.625
Revolve Group (RVLV)
1st Buy: 6/13/2019 @ $39.06
Current Per-Share: $20.00
General Electric (GE)
1st Buy: 3/6/2020 @ $9.40
Current Per-Share: $6.60
* Indicates a position where the capital investment was sold.
Profit % for * positions = Current Gross Profit / Original Capital Investment
What is the Super-Speculative Basket?
The Super Speculative Basket (“Super-Spec”) is made up of a handful of stocks so incredibly volatile that I’m uncomfortable giving any of them full allocations in my portfolio, instead dividing a single allocation among all of them.
Currently, my Super-Spec stocks are as follows: the Airlines ETF (JETS), Carnival Cruise Lines (CCL), and Virgin Galactic (SPCE). They are listed as a single allocation in the portfolio breakdown chart each week.
This Week’s Moves
SPY Put Spread Insurance: Closed & Opened
My August 31 324-320 Put Spreads closed the month completely worthless as the SPY made record highs in excess of $350 throughout the month.
What’s making me buy more put spreads for September? Am I just a glutton for punishment?
Actually, the answer is quite simple – the Speculation in Play portfolio is my speculative portfolio and it’s up in excess of +40% YTD. Given the unbelievable froth in the markets and many analysts I trust saying the markets aren’t just in for a pullback but potentially a crash unlike anything we’ve seen in 90 years, I’d rather use the gains of the portfolio to play the potential bearish downside.
So, on Monday, the date of expiration for my previous put spreads, I opened a set of new spreads, this time targeting the SPY’s new highs with a 350-345 put spread expiring on September 30 costing me $1.7931 per spread.
The Maximum Potential Profit for each spread is $320.69 (the difference between the puts I bought at $350 and the puts I sold at $345 ($500) minus the cost of each spread ($179.31) which equals $320.69) giving me the potential to nearly triple my starting capital on each spread if the SPY closes below $345.00 by expiration at the end of September.
At the week’s end, my puts were worth $2.625, up +46.39%.
Revolve Group (RVLV): Profit-Taking
When Revolve Group (RVLV) continued to rise during Thursday’s selloff, I decided to take advantage of the bullish action to further reduce my exposure to the name. I sold some shares at $21.99, locking in profits that reduced my per-share cost -1.77% from $20.36 to $20.00, but, more importantly, reduced the allocation of RVLV in my portfolio.
From here, I have no plans to add to the name with my next sell target at $24.40.
RVLV closed the week at $20.78, down -5.50% from where I sold Thursday.
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!
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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.