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Trade Alert: Portfolio Trims And Hedges Into The Spikey Rally

Andrew Snyder

Andrew Snyder

— 2 min read

Good afternoon all –

Bryce speaking here. Cody wanted me to write a quick trade alert as the markets are up again and many of our favorite longs are up nicely today.We did some trimming and put-buying this morning. Here are the trades we made (in alphabetical order):

  • PL: We sold all of our Planet stock after the company reported a really disappointing quarter last week and lowered its full-year guidance. The company was supposed to grow about 35% this year and now thinks it will only grow around 20%. The company claimed it was just a timing issue with some of their government customers, but BKSY reported only a couple of weeks ago and was not seeing this same weakness in government spending. We are a little concerned with management’s ability to execute their growth plan and are moving on from this one at basically break-even.
  • RKLB: Even though I didn’t want to, Cody made us trim a tiny amount, less than 10%, of our Rocket Lab position after this big move over the last couple of weeks and today. As you all know, we leaned into RKLB heavily when the stock was in the high $3s and low $4s. The company is doing great and this is still one of our biggest positions, just needing to stay disciplined.
  • ROK: We sold a few call options we had on ROK just to balance the portfolio but are otherwise sitting tight on this one. If you have not sold any of this stock, it wouldn’t be a bad time to trim a little here.
  • TSLA: We sold a couple of calls (August expirations, near-the-money) against our outsized TSLA common position as the stock has had an absolutely incredible run in the last three weeks. We would not recommend individual investors sell options in their personal accounts simply because the risk is too high. That said, if you have not sold any TSLA at all, it wouldn’t hurt to take a tiny bit of profits right here. You all know that TSLA is one of our biggest positions and it probably is our highest-conviction long (together with SpaceX) and we are only selling to keep the portfolio in balance.
  • WOLF: We have trimmed about 20% of our Wolfspeed position over the last couple of days. Again, we have been a little concerned about management’s ability to ramp production of SiC chips from the company’s new plant. The stock has made a huge, almost 50% move off of the lows and so we sold a little bit just to keep it from becoming an outsized position.
  • Shorts: We picked up some puts in a handful of EV/Charging/Hydrogen names to hedge our TSLA and RIVN longs, including some puts on BE, BLDP, BLNK, NIO, and XPEV. We used puts expiring next month or so, in-the-money strikes. We also bought some DoorDash (DASH) puts as an UBER hedge and some Rare Earth Metals ETF (REMX) puts as an MP hedge. Lastly, we bought a few out-of-the-money QQQ and SPY puts.

That’s it for now. Also, we’ll do this week’s chat Friday (6/16) at 2:00pm EDT. Rock on!

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