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.

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. 

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.