music selection: “Modern Love” — David Bowie
Some weeks ago I set up a “Fish Hook” for Microsoft (MSFT) by putting in a good till canceled order for a bull call spread at the 225/230 strikes and 18JUN2021 expiry for 2.50 a share. This was well outside the current bid and seemed unlikely to fill. On some share price weakness the order finally filled and I now hold 20 spreads. I have 5,000 dollars of capital at risk. If shares finish above 230 in June, I will double my money. The high strike is currently 0.97% out of the money but if the position expired today, it would still earn 560 in profit.
On 6JUL2021, I bought NTLA for 22.64 a share and SI for 13.42. I set a 33% trailing stop loss on both. Today, both breached their stop and I sold. I got 52.41 for NTLA for a 231% gain and 105.26 for SI for a 784% gain. I have ten more “moonshot” investments up a weighted average of 67.09% since July. Some are approaching their stop losses, but most would stop out with a net gain. These investments are all held in my tIRA account which has been on a tear this year, although the current month performance has been poor. But that is why you use trailing stop losses on speculative investments.
Devour your prey raptors!