Good morning,
On Sunday in the 150th Volume of The Week Ahead, I wrote about disbelief being fuel. This week, disbelief gave me one of those trades that can’t not make you smile.
I bought ORCL at 5% weight back on the 5th at $228. On top of that, I’d been nibbling the 9/19 280Cs back in late July, a position I’d basically written off as a zero. Yesterday they went 10x. Most of them I cut yesterday, but I’ve kept some because I plan to take delivery of more stock. The way I see it, ORCL isn’t done. Too many are still underweight, and the setup has shifted in a way that could carry it higher.
Just a reminder that sometimes the best trades come from the ones you’ve already mentally buried. The premium was spent, the calls were dead money… until suddenly they weren’t. The exact reason to trade options the way they were designed to be - premium paid = max loss, no stops.
But it wasn’t just one giant that performed well this week... NVDA is up 6% on the week. I paid $4 for the 10/17 180Cs on Monday; they’re at $6.85.
VRT, which I made a 5% weight on Friday, is up 10.2% for the week. CRWV, also from the Phase 2 AI basket, exploded +31% on the NBIS news and ORCL news added to it’s gains. CRDO is +16% this week, I first bought it back in May for ~$47, it’s $165 now, trimmed but still long. Another Phase 2 name… VST is +11% for the week.