Weekly Portfolio Update: GLPI Slump, Making Gains on TRUE and TMX

With S&P 500 momentum volume moving positive again today, we need to actively manage our portfolio.

You’ll notice that it was quiet this week. 

With great uncertainty in the market and inflation numbers hitting nosebleed levels, it’s unclear which way the money wants to flow. 

Six banks issued dire warnings around the market this week, and the talking heads are screaming about blood in the water. 

I’m being cautious until Monday. I want to see where futures start next week before making any sudden moves. 

With that in mind, we have a number of winning positions, and our focus on reversion momentum in these choppy conditions is paying off.

Let’s take a look at the portfolio and recent moves.

Zynga (ZNGA)

We exited ZNGA this week when it hit its trailing stop of $8.50. We made a gain on the stock, and we had two nice legs on our options trades. We’ll be ready to deploy capital next week.

Gaming & Leisure Properties (GLPI)

Rival VICI Properties engaged in a stock issuance to fund a new project, and pulled the rest of the sector down with it. This is extremely frustrating. The good news is that the stock has moved into oversold territory, and now we look for investors to scoop it up on the cheap. We will hold this position. I expect it to claw back to the $50 range where the 200-day moving average sits. 

Levi Strauss (LEVI)

This is a legacy trade from our original portfolio, and the company can’t seem to catch a break. The big, negative news around the huge jump in supply chain inflation isn’t positive news right now. We will give this one more week to rebound. Otherwise, we’ll have to cut the dead weight.

PAM Transport (PTSI)

PTSI continues to chug along in positive momentum conditions. Shares opened north of $40 today. Based on the recent move up to $40.42, your new trailing stop is $37.59. It’s very important to follow these rules. That will ensure at least a 12.5% gain from our original entry price.

TrueCar (TRUE)

TrueCar moved very close to our trailing 7% trailing stop of $4.00, but it has since bounced back and is now tracking north of $4.27. Our option is flat right now at $0.40, but the momentum is surging higher for this stock. I think that $5.00 is still in the cards. If you’re just buying it, be sure to keep that trailing stop in place. Be patient.

Co-Diagnostics (CODX)

The volatile diagnostic company might be weighing on our patients, but it’s still in play. There’s a move to $12.50 coming, and we’ll be happy to take our profits if we get above $11.75. 

ARES Management (ARES)

The stock has moved out of overbought conditions into oversold conditions. Morgan Stanley just upgraded the financial power player to $90, but would be a nice gain. I’m looking for institutional capital to show up and push this higher.

Cameco Corporation (CCJ)

The uranium player has been an emotional rollercoaster over the last 48 hours, but a 4.2% move this morning has the stock up to around $24 per share. Can it go higher? It could break to $30 by the end of the month if this surge in uranium prices continues. As I explained in the video, Sprott Management is buying up supply, and CCJ is going to be the big winner.

We’ve bought the stock and taken a tight trailing stop. We also bought the Oct. 15, 2021 $22 call for under $1.50. 

This afternoon, I recommended that you take 50% of the position off the table. By securing more than 100% gain on your first half of the trade, you’ve locked in a free trade. In fact, since the return is likely higher than 100%, you’ve locked in a guaranteed win. But we will manage this actively. If the stock pulls back, we can take the rest of the gain, but given this incredible momentum, I think there’s plenty of room to run.

Terminix Holdings (TMX)

Speaking of gains, TMX is running as well. After that double upgrade by Bank of America, this continues to perform. I recommended TMX when it was trading around $42.30. It’s now north of $45.70. That’s an 8% move in a week, and that’s a great reversion momentum trade.

Now, we also tagged that Feb. 22, 2022 $40 call at $4.50 or better. The Bid-Ask spread puts the contract around $7.00. That’s about 55% on a contract that hasn’t seen a lot of volume. If you got into this trade, you’ll want to manage this closely. I’ll monitor it as well. It may be time to take profits off the table if the stock hits $46.00 and move onto the next trade with money in your pocket.

I’ll be back with a watchlist for you on Monday. 

Enjoy your weekend,

Garrett Baldwin

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