Special Situations
Below is a snapshot of our four active Special Situation models. (UVXY is still in a "Pending" mode, waiting to a turn up in its momentum). The two Longs, OSTK and SQ are holding up well. Note that the stop on SQ has risen significantly over the past two days as the stock is up 6% and the June $42 calls are up over 30%.
Both GBTC and MGTI are going to be very tied to the price of bitcoin which has fluctuated between $10,000 on the low side and about $12,000 on the upside over the past few days. Bitcoin can break out, or break down, on any news, fake or not, at any time 24/7. The opportunity rests in getting into the next leg in either direction and riding it as long as the trend will support it. SQ is less sensitive to the volatility of bitcoin, and is doing well just on its own fundamentals.
Option Gains
Having been stopped out off most of our option positions, the same options have gone on to an average gain of over 200% per position. The signals are there, the option selections are there, the profit trailing stops are not. The cop-out explanation is that this is a whacky market environment that has neutralized previous and proven money management techniques. The better and more honest explanation is that we just managed these trades poorly. Short of throwing out all stops, is there a better way? If not, we have to throw out the stops. Consider doing just so on some of these positions until we can find a more effective exit strategy. Hey, it is what it is.
Trading Models
