Live: Wednesday, February 26, 2020

11:40 a.m. New York time

In stocks, I exited three profitable positions. Normally I cut my losers and keep my winners, but this is a circumstance where the markets, after their dramatic declines, may well bounce back. So, prudence dictates that I preserve what what I earned and optimism dictates that I wait and see what happens to the rest.

The exits:

  • CDNA, from the Genetics Portfolio, for a $25.47 credit, up $1.50 from the entry debt, producing a 6.3% return over 40 days for a +57% annual rate.
  • MOD, Value Portfolio, for an $8.30 credit, up 43 cents from entry, for a 5.5% return over 22 days, a +91% annual rate.
  • TCEHY, Robotics Portfolio, for a $51.54 credit, up $3.35 from the entry debit, a 7.0% return over 27 days for a +94% annual rate.

I’m hanging on to REGN, my biggest earner, which contrary to all the other stocks in my portfolios continues to rise. I’m keeping a close watch on it, and shall exit if it drops below the low of the current day. REGN is presently showing a 12% return.

I plan no entries today, and the Zacks algorithm didn’t remove any stocks from their portfolios.

In my nine short iron condor options, five continue to be priced in the money, below the strike price on their short puts. For a short position, in the money is when a trader loses money. The three ITM short iron condors are XLB, XLE, XLI, XLK and XLV.

A bounce back up in the broad markets will bring the five positions back into potentially profitable territory. When I manage winners (if any) on Friday, I shall also decide about the losers, either exiting the put legs, during them into bear call spreads, or hanging on to them in the hope that their prices will return to profitable ranges.

By Tim Bovee, Portland, Oregon, February 26, 2020


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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