Freaky Fast Profits Portfolio (9/1/20)

We rallied back hard today from yesterday’s $133 loss, adding a little over $550 in profits today, or 3.4% of our account value. We only added a small stock position in ABT to go with our options position which we may have to take profits on shortly if it doesn’t turn back higher. That ABT call spread was our big loser today and it’s getting a little iffy. I’d like to make sure we keep at least a 100% gain on it. Right now we’re up $131 on an $88 investment.

To pay for the ABT shares, I sold LULU around $389. That position was open for 26 days and gave us a 13% return. There is absolutely no reason for anyone else to sell LULU, we just didn’t have anything else we were willing to get out of completely today.

We also sold about half of our PETS stock, for a 4% loss. That has done nothing wrong yet, but it isn’t acting right, either. But I do want to give the other half a chance to right itself. Then, as we try to do on every big positive day, we trimmed our TMHC and NET positions this morning. I want to always be trying to sell as many of my shares when they’re rising as I’m forced to sell when they’re falling. Especially when opportunities abound, money should constantly be flowing to you and through you.

Big gainers today include DKNG (which basically returned yesterday’s $150 losses back to us), our AKAM options position (up $133) and our SPOT spread (up $110). We’re up well over 200% on that SPOT position, but it’s a tenuous situation that needs to keep going up in order to stick around. Here’s the P+L graph:

14 of our 24 positions saw their stocks rise 2% or more today. Three of them (TTGT, THMC and RDFN) all gained more than 5% today, and if you don’t already own them they make for intriguing entry spots.

At the same time, the market is clearly getting frothy. Be alert for cracks to appear, and adjust as you see them. We will. But don’t miss the opportunities you see now. Act, and the results will tell you when it’s time to slow down.

Happy trading!

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