November 6, 2020
Risk Disclaimer
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
Grow Generation (GRWG) & Plug Power (PLUG)
Just last week, I added Grow Generation (GRWG) and mentioned that the stock tended to be volatile. Yeah, how about +37.60% in gains the next week thanks to positive cannabis catalysts?
With second newcomer Plug Power (PLUG) coming in a close second with a +34.71%, both of these are crazy Winners of the Week.
Carnival Cruiselines (CCL)
The mirror opposite of last week, this week’s “Biggest Loser” is the stock that gained the least which would put Carnival Cruiselines’ (CCL) paltry +0.80% gain at the top (or is it bottom?) of the loser heap.
Portfolio Allocation
Positions
%
Target Position Size
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Portfolio Breakdown
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Year-to-Date Performance
Current Position Performance
Pinterest (PINS)
+754.29%*
1st Buy: 5/16/2019 @ $25.72
Current Per-Share: -($33.60)*
AMD (AMD)
+565.22%*
1st Buy: 1/10/2019 @ $19.54
Current Per-Share: (-$5.14)*
Yeti (YETI)
+525.57%*
1st Buy: 2/26/2019 @ $23.23
Current Per-Share: (-$142.16)*
Airlines ETF (JETS)
+382.54%
1st Buy: 5/14/2020 @ $11.30
Current Per-Share: $4.64
Virgin Galactic (SPCE)
+203.58%*
1st Buy: 10/31/2019 @ $9.87
Current Per-Share: (-$0.15)*
Twitter (TWTR)
+198.07%*
1st Buy: 10/30/2019 @ $29.79
Current Per-Share: (-$45.02)*
Tradeweb Mkts (TW)
+187.31%
1st Buy: 4/8/2019 @ $39.22
Current Per-Share: $21.47
Carnival Cruise (CCL)
+164.47%*
1st Buy: 3/12/2020 @ $17.25
Current Per-Share: (-1.01)*
Grow Gen. (GRWG)
+43.31%
1st Buy: 10/30/2020 @ $16.04
Current Per-Share: $16.04
Plug Power (PLUG)
+33.38%
1st Buy: 10/30/2020 @ $14.28
Current Per-Share: $14.28
General Electric (GE)
+24.76%
1st Buy: 3/6/2020 @ $9.40
Current Per-Share: $6.49
Chevron (CVX)
+19.83%
1st Buy: 3/12/2020 @ $76.94
Current Per-Share: $59.38
Revolve Group (RVLV)
-4.82%
1st Buy: 6/13/2019 @ $39.06
Current Per-Share: $20.00
Put Spreads (SPY)
-65.99%
Cost: $1.83
Current Value: $0.62
* 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 Put Spread Insurance: 329-324 Dec 4 Options
When the markets rebounded on Monday after last week’s rout, I decided that I wanted to reboot the put spread insurance I had exited smoothly last Thursday.
Between the election and its potentially getting contested combined with rising COVID cases, potential civil unrest, and any of a myriad of other negative catalysts, I wanted some protection against downside risk.
Enter the SPY 329-324 Dec 4 put spreads. I bought the SPY 329 Dec 4 put options and sold the 324 expiring the same day on Monday during the market bounce for roughly $183 each. This gives each contract the maximum potential value of $500 at expiration (the difference between the puts I own at $329 versus the puts I sold at $324 = $5 times 100 per contract = $500).
Maximum profit? $500 – $183 = $317 (273.22% or nearly a triple in gains)
Given that the SPY sold off below $323 last week, I’m confident that should we see any additional negative selloff that $324 is a very reasonable target and I could likely make a decent profit on my spreads.
…. at least, I was confident until the markets skyrocketed at the prospect of a mixed government result of the election.
That being said, I have no qualms about taking in some protection to get me through the month. The potential for extreme volatility remains high, even if the week’s moves decimated the value of my put spreads.
The maximum loss potential of these spreads could ding the portfolio for a total loss of -4.1%. Conversely, if the market sells off, the spreads stand to add a maximum of +7.98% to the portfolio.
Given the portfolio is up nearly 50% Year-to-Date, I’m comfortable with the risk-reward potential of this play.
End-of-Week Value: $0.62
Current Profit/Loss: -65.99%
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.
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