Our Quantity One Identify: Tesla – Robinhood Markets (NASDAQ:HOOD), SPDR S&P 500 (ARCA:SPY)

Portfolio Armor’s Prime Ten Names

Portfolio Armor’s high ten names have, on common, outperformed the market considerably since December of 2022. Since then, we now have full, 6-month efficiency information on 74 weekly high names cohorts. On common, our high names have returned 18.57% over the following 6 months, versus 12.72% for the SPDR S&P 500 Belief SPY.

Tesla Wasn’t A Prime Identify For Most Of This 12 months

Since current worth efficiency is without doubt one of the elements Portfolio Armor’s safety choice algorithm makes use of, Tesla, Inc. TSLA did not seem as a high title for many of this yr, however we have had some success buying and selling it earlier this yr utilizing different alerts:

1. Name unfold on Tesla (TSLA 9.19%↑). Entered at a web debit of $1.63 on 4/8/2024; exited at web credit score of $4.74 on 11/8/2024. Revenue: 191%.
2. Name unfold on Tesla (TSLA -0.61%↓). Entered at a web credit score of $1.50 on 7/11/2024; choices expired nugatory on 7/19/2024. Revenue: 150%.
3. Name unfold on Tesla (TSLA 8.44%↑). Entered at a web debit of $0.83 on 10/14/2024; exited at a web credit score of $2.96 on 10/24/2024. Revenue: 196%.

One Of Our Put up-Election Trump Trades

Tesla was considered one of 4 post-election Trump trades included on this publish earlier this month.

All 4 names in that publish had two issues in widespread: that they had been a Portfolio Armor high ten title the evening earlier than, and so they stood to profit from Trump’s reelection.

For instance, one of many 4 was Robinhood Markets, Inc. HOOD which ought to profit from loser crypto regulation underneath Trump. We exited half of that commerce on Monday.

1. Calls on Robinhood Markets (HOOD -0.95%↓). Purchased for $1.70 on 11/12/2024; offered (half) for $6 on 11/25/2024. Revenue: 253%.

The logic behind Tesla being a Trump commerce was fairly easy: Tesla (and SpaceX) have been targets of lawfare by the Biden Administration, and underneath Trump, all that ought to go away. Elon Musk has gone from a Trump supporter to virtually a part of the Trump household. President Trump’s niece Kai calls him “Uncle Elon”; when President Trump went to the UFC this month along with his two oldest sons as a part of his entourage, it was Elon Musk who sat subsequent to him at cage aspect.

Our Quantity One Identify Now

As of Monday’s shut, Tesla was Portfolio Armor’s #1 title once more, so we will place one other bullish choices wager on it at the moment. Along with Tesla, we will place bullish bets on three different shares in our present high ten:

• A picks & shovels play on AI.
• An insurance coverage firm powered by AI.
• A client finance firm that ought to profit from decrease charges.

In every case, we’ll be utilizing name spreads expiring 4-to-6 months out, and we’ll be aiming for worth targets barely decrease than these advised by the present at-the-market straddle (i.e. the present vary anticipated by the choices market).

We’ll be aiming for good points of 200% to 400% if we’re proper, and if we’re incorrect, our max loss on every commerce might be 100%.

If you happen to’d like a heads up once we place these trades, be at liberty to subscribe to our buying and selling Substack/occasional e mail record beneath. 

And as a reminder, if you’re involved about draw back danger, you may obtain our iPhone hedging app by clicking on the QR code beneath or aiming your iPhone digicam at it.

If you happen to’d like to remain in contact

You may scan for optimum hedges for particular person securities, discover our present high ten names, and create hedged portfolios on our web site. You too can comply with Portfolio Armor on X right here, or change into a free subscriber to our buying and selling Substack utilizing the hyperlink beneath (we’re utilizing that for our occasional emails now).