Closing 3 Trades

By: ispeculatornew
Date posted: 10.24.2014 (4:22 am) | Write a Comment  (0 Comments)

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My long & short trades are generally a lot more volatile than my other trading portfolios which is why despite their strong performance, I will continue to put a limited amount of cash into that account. However, given the performance of the strategy over the past 5 years, it’d certainly be tempting to put more into it in 2015. I guess I’ll discuss that when I publish my post about the lessons that I take from my 2014 trading.

Today, I will be closing 3 of the 5 remaining long & short tech stock trades:

Long Apple (AAPL) & Short Yelp (YELP): +44,05% – Yelp is a company that has been overvalued for some time and putting up against a stock like Apple gave me good odds. The trade was negative for some time but then Yelp reported disappointing guidance:

ycharts_chart

Long Google (GOOG) & Short Blue Nile (NILE): -24,47% As many of you know NILE has been one of my favorite shorts over the years but it has recently become closer to what I’d consider to be its “fair price”. Still, shorting it against Google seemed like a good risk/reward trade but when Google fell short in terms of earnings, that trade went bad.

ycharts_chart (1)

Long Tripadvisor (TRIP) & Short Travelzoo (TZOO): +27,13% Ahh. I love this pairing. TRIP has had a tough run and I’m currently down over 10% on my long term speculative bet (to be fair, the market is also down) but I have no doubt that over tiem, TRIP is a superior play and you can expect me to put this trade up again at some point next year.

ycharts_chart (2)

The returns for the long & short portfolio now stand at +40,13%, a good return in any year and far beyond my yearly objectives for this portfolio.

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