Closing SQQQ Hedge for a $4,100 Gain

I’m closing the SQQQ position when the market opens this morning. This week had a lot of turnover in the portfolio and I uncharacteristically made a “trade” and worse than that… I SHORTED the market through an inverse ETF.

I agree… trading is a bad idea… and shorting is usually even worse.

This is why I usually don’t do these things and don’t plan to do them in the future. But for all the reasons I laid out in my previous emails, I felt this was a time to do it.

And it worked.

SQQQ is currently trading at $36.44 pre-market. I bought 1204 shares at an average price of $34.43 so depending on where SQQQ opens, I’ll be up roughly $2,420 on this trade in a matter of two days.

Doesn’t seem like much right? But we have to remember I sold DDOG and SNOW and put that capital directly into SQQQ. So the net profits are actually more.

Here’s the first purchase of SQQQ on 2/15. I contributed $17k more the portfolio just to buy SQQQ. I will make a profit of roughly $841 on these shares which is a 5% return.

Then on 2/15 I sold 139 shares of DDOG at $88.73. DDOG is currently at $80.80 pre-market. So I would be down $1,102 if I still held those shares

I invested that $12,323 directly into SQQQ and bought 363 shares at $33.89. With SQQQ currently at $36.47 pre-market, I’m up $933 on that trade. Then add back in the $1,102 I’d be down if I had just held DDOG. Now I’m up $2,034 on this trade.

Then after seeing DDOG’s weak guidance I decided SNOW was too expensive given the environment and sold 72 shares at $167.71/share. SNOW is currently trading at $160 pre market. So if I would have just held those SNOW shares, I would be down $555.

I again invested that capital directly into SQQQ and bought 352 shares at $34.51. With SQQQ at $36.41 my profit is $668. Add back in the loss I would have on SNOW and we’re at a profit of $1,223 on this trade.

So lets add up the profits. $1,223 from the SNOW trade + $2,034 from the DDOG trade + $841 from my original SQQQ purchase.

I’ve profited $4,099 from this trade in 2 days. With the portfolio currently at $167,000 that’s a 2.4% profit in two days and now I’ll have a nice comfortable 25% cash position that I can use to invest in a great business trading at a reasonable price.

Yes, this was a short-term trade. Yes short-term trading is bad. But I got lucky and it worked out and now I’m in a very comfortable position with cash to deploy when I find a great opportunity.

Now we go back to researching companies and finding the next great opportunity. Two I’m considering are and

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Gotta go to an event at my son’s school. Have a great day and spend time with your loved ones.