Exit UUP & SLV Ahead of the Weekend

What a week.

We spent the past five days updating the portfolio…

Opening a new trade on UVXY…

Playing Nvidia Corp.’s (Nasdaq:NVDA) 4-for-1 stock split…

And breaking down historical volatility.

That’s not even including our daily Watchlist stocks, impact money trades, and VIX traffic light updates.

See, every day the market’s open, I’m bringing you the best money-making opportunities. We did it this week – and we’ll do it next week too.

And there’s even more where that came from.

I spent yesterday in Baltimore, Maryland working on a special project – one that will be coming straight to you in the coming weeks. Keep a close eye on your inbox, because my Profit Takeover members are going to get first access to my newest endeavor.

But in the meantime, we’re continuing like usual – and today, I’ve got my favorite part of the week coming at you.

That’s right – it’s time to answer some questions directly from readers like you.

Today, we’re covering the UVXY, long-term investments, and exit strategies – plus, we’re selling two of the positions in our current portfolio.

First up, we have a question from Jason on one of our favorite Profit Takeover securities – the UVXY.

If you don’t know what Jason’s talking about, check out this chart of the ProShares Ultra VIX Short Term Futures ETF (BATS:UVXY) over the past year:

As you can see, it’s been in a steady downtrend – but this has nothing to do with volatility and everything to do with the makeup of the product.

Without going too deep into how VIX term structure works, know this – as long as the VIX futures are in a contango, UVXY is going to drop.

The same holds true for the iPath Series B S&P 500 VIX Short-Term Futures ETN (BATS:VXX). But the UVXY is leveraged, giving it an even worse profile.

This is why we’ve been able to profit with UVXY puts. First, in mid-June when we took a 100%-plus gain after the UVXY’s reverse split.

And now, we’re doing it again. Check out where our current UVXY put stands right here.

Next up, we have a broader question from Jatin, who wants to know the best strategy for managing his portfolio:

The answer is both.

It always makes sense to spend some time evaluating a portfolio. In fact, that’s exactly what we did last Friday – check it out!

As certain stocks run higher, they can make up an outsized portion of your wealth. Then, if one of those stocks takes a fall, it is going to hurt you. So make sure to manage your holdings to make sure you are not overweight too much into one stock.

Also remember that the indexes – notably the Invesco QQQ Trust (Nasdaq:QQQ), tracking the Nasdaq, and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), tracking the S&P, are very top heavy. So you may have more exposure to names like AAPL without even knowing it.

Lastly, an exit strategy question from Gerry – one that has us closing out two of our Profit Takeover positions!

Generally, that is my approach as well – unless I have a very specific reason to hang on.

Sometimes though, stocks will make such a quick move lower that it becomes not worth it to sell. In those cases, I’ll hang out for a little bit.

But right now, let’s end the week by exiting a couple of our losing positions so that we can preserve capital and move on.

I’m talking about the UUP August 20, 2021 $25 put and the SLV August 20, 2021 $25 call. These trades have gotten away from us – here’s how to exit now:

Sell-to-close the UUP August 20, 2021 $25 put and the SLV August 20, 2021 $25 call at market.

Now, remember – I go live every week exclusively for Profit Takeover members to show you how to trade the week’s top market mover.

And with every livestream, I release a new trade recommendation.

With a new trade every week, we’ll make up for these losses in no time. Remember, when you’re chasing asymmetric returns like we are, you can lose more than you win – and still end up profitable.

If you have a question that I didn’t answer here today, send me a message right here in our Ask Me Anything form.

Have a great weekend,

Mark Sebastian

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