September 25, 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
So, when the Dept. of Justice released new legislation to limit tech’s liability shield, you’d think that’d be bad news for a social media stock like Twitter (TWTR), right?
Not so much. TWTR popped +9.19% in a crappy week for the markets to easily earn itself the spot of the week’s Biggest Winner.
General Electric (GE)
Wow! That was a short celebration. General Electric (GE) went from being last week’s winner to this week’s Biggest Loser down -11.19% when COVID started rearing its ugly head everywhere in Europe (and the U.S.).
Target Position Size
Current Position Performance
1st Buy: 5/16/2019 @ $25.72
Current Per-Share: -($10.25)*
1st Buy: 1/10/2019 @ $19.54
Current Per-Share: (-$5.14)*
1st Buy: 2/26/2019 @ $23.23
Current Per-Share: (-$44.50)*
1st Buy: 10/30/2019 @ $29.79
Current Per-Share: (-$45.02)*
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: $21.47
1st Buy: 3/12/2020 @ $76.94
Current Per-Share: $54.29
SPY 10/23 Put Spreads
Current Value: $1.49
General Electric (GE)
1st Buy: 3/6/2020 @ $9.40
Current Per-Share: $6.60
Revolve Group (RVLV)
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
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 10/23 325-320 Put Spreads: Insurance
The S&P 500 sold off more than 10% from September 2-18, so when it bounced on Tuesday, I felt it was a good time to buy some more insurance should we see significant volatility in the next month.
With the SPY around $330, I bought the 325-320 put spreads that expire on options expiration Friday in October (the 3rd Friday of the month is “expiration Friday” and is October 23, in this case).
I sold the 320 puts for $5.32 and bought the 325 puts for $6.81 making the cost of each put spread I bought $1.49 ($6.81- $5.32 = $1.49). The maximum I can sell each spread for is the difference between the puts I bought and the puts I sold or $5.00 ($325 – $320 = $5.00).
The maximum profit? $3.51 per spread or a +235.57% gain which could potentially more than triple my original investment if the SPY closes lower than $320 on the date of expiration – a drop of slightly more than 3% from Tuesday’s $330 price. Basically, I’m risking 3.77% of my portfolio to make as much as 12.57%.
My spreads were worth $1.49 on Friday, down -0.21% from my purchase price.
Twitter (TWTR): Profit-Taking
Twitter (TWTR) popped nearly more than 7% on Wednesday following the unveiling of Trump’s Department of Justice’s legislation to reform the legal liability shield held by the technology sector.
Twitter making new all-time highs and me taking profits when a sell order I had in place filled at $45.00. The sale locked in +51.06% in gains on some of the initial buy for the position made back on October 30, 2019 at $29.79.
I have now pulled out $45.00 of profit for each share remaining in the position. My next buy target is $30.40 and I have no sell targets for the remaining shares at this time so I can watch where Twitter heads from here.
TWTR closed the week at $43.84, down -2.58% from where I sold Wednesday.
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.