September 11, 2020
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The Week's Biggest Winner & Loser
Virgin Galactic (SPCE)
Virgin Galactic (SPCE) is earning a name for itself as a long-term "throw-it-in-a-drawer" play for those wanting a dedicated bet on the potential of commercial space travel. In the midst of a pretty melancholy week, SPCE closed up +4.02% to earn the spot of the week's Biggest Winner.
Revolve Group (RVLV)
The rotation out of tech stocks continued this week, and, boy, did Revolve Group (RVLV) take the brunt of the rotation, dropping a whopping -14.58% over the week to earn the spot of Biggest Loser.
Portfolio Allocation
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Positions
%
Target Position Size
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Portfolio Breakdown
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Year-to-Date Performance
Current Position Performance
AMD (AMD)
+516.46%*
1st Buy: 1/10/2019 @ $19.54
Current Per-Share: (-$5.14)*
Pinterest (PINS)
+513.20%*
1st Buy: 5/16/2019 @ $25.72
Current Per-Share: -($10.25)*
Yeti (YETI)
+495.47%*
1st Buy: 2/26/2019 @ $23.23
Current Per-Share: (-$44.50)*
Virgin Galactic (SPCE)
+190.24%*
1st Buy: 10/31/2019 @ $9.87
Current Per-Share: (-$0.15)*
Twitter (TWTR)
+186.66%*
1st Buy: 10/30/2019 @ $29.79
Current Per-Share: (-$0.01)*
Carnival Cruise (CCL)
+181.30%*
1st Buy: 3/12/2020 @ $17.25
Current Per-Share: (-1.01)*
Airlines ETF (JETS)
+167.92%*
1st Buy: 5/14/2020 @ $11.30
Current Per-Share: (-$1.26)*
Tradeweb Mkts (TW)
+147.41%
1st Buy: 4/8/2019 @ $39.22
Current Per-Share: $21.50
SPY Sep 30 Put Spread
+100.07%*
Cost: $1.7931*
Closing Value: $3.5996
Chevron (CVX)
+40.79%
1st Buy: 3/12/2020 @ $76.94
Current Per-Share: $55.18
General Electric (GE)
-9.67%
1st Buy: 3/6/2020 @ $9.40
Current Per-Share: $6.60
Revolve Group (RVLV)
-11.23%
1st Buy: 6/13/2019 @ $39.06
Current Per-Share: $20.00
* Indicates a position where the capital investment was sold.
Profit % for * positions = Current Gross Profit / Original Capital Investment
Super-Speculative Basket
Airlines ETF
JETS
Carnival Cruise
CCL
Virgin Galactic
SPCE
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 even in my Speculation in Play 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 9/30 Put Spreads: *Position Closed: +100.07%*
When the market selloff continued on Tuesday following Labor Day weekend, the value of my SPY 9/30 350-345 put spreads more than doubled in value from where I bought them last week.
Despite having the remainder of the month before expiration and potential gains of $500 per spread, my discipline rules dictate that it's time to close an options trade when the position has either doubled in value or reached 60% or more of its maximum profit potential.
On Tuesday, the value of the spreads crossed over $3.60, more than double the initial $1.7935 purchase price, and approached 60% of their maximum profit potential, so I decided it was time to sell, closing the spreads out at $359.95 each (56.34% of their maximum selling price of $500.00).
The sale locked in +100.7% in gains in just a little over a week, and added a significant +4.51% in gains to the entire portfolio. From here, I'll wait to see where the market goes and how it stabilizes before opening another spread position.
The SPY closed Tuesday at $333.21. It closed the week up +0.26% at $334.06.
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!
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