I did not sell a single share of stock today, which probably surprises you if you read my outlook piece from yesterday. I’ll explain why not, in a post later this week, but for now let me just say that market makers know how to hunt stops. My stops are never pre-entered to sell at a certain price. I sell everything I hold manually, because I want to see how the stock performs at the obvious stop-hunting area.
What did I do? I bought more DKNG, below where I said yesterday that I’d probably get out. Thank you Market Maker! Having discipline in my loss-taking is very important to me, but I’ll just be honest. There’s no way I’m getting out of DKNG before it reports earnings, because I believe with every fiber of my being based on what I know about gamblers, what I know about the company, and what I know about their product, that they are going to crush expectations this quarter and offer optimistic guidance going forward. Today it was down 10% at one point, based on talks of college football possibly not being played this year. If you know the company, you know that college sports represents such a miniscule portion of their revenue that this reaction was laughable, and a gift. All we’ve done with this move down is fill the small gap up from the highlighted green candle below. Screaming buy here.
In addition, I sold an Aug $300 call in HD against my long Sep $290 call, for $50. The P+L graph of that combined position now looks like this:
That’s all for tonight. I might buy Nike tomorrow.