Freaky Fast Profits Portfolio (8/6/20)

After making a quick grand to start the week on Monday and Tuesday, the last two days have been relatively flat, as we’ve managed to eke out about $40 in gains combined. There seems to be a bit of a rotation from the high-flying tech names to the companies that stand to do better if the economy fully re-opens soon. Whether this is short term profit-taking by the fund managers, basically doing what we’ve done this week, or whether it’s the start of a trend… we shall see.

Today, I followed along a bit. I added shares of Lululemon (LULU) at $337. LULU probably works in either scenario, to be fair. In addition, I took a shot at the casino stock MGM when it moved above its 50-day moving average.

I purchased the Sep $18 call and sold the Aug $20 call against it, for a cost of $126. Here is the profit/loss chart on that trade.

I’m probably going to regret selling the call against it, because this could potentially run to $23 in a hurry, but this should be a fairly profitable trade either way. Ideally, it gets to around $20 at the August 21 expiration date, and then I’ll be able to sell a Sep $23 call against my position for a new, similar trade.

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