Closing Trade ($PYPL, $RAX)

By: ispeculatornew
Date posted: 04.11.2016 (3:00 am) | Write a Comment  (0 Comments)

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Happy Monday! This morning I will be closing one of the 7 existing trades as the Long Paypal (PYPL), Short Rackspace (RAX) went over its stop-loss. The bad news? This is a trade that actually did not turn out well with the trade currently standing at -24.11%. It will be closed on Monday morning’s opening.  Shorting Rackspace always carries a certain amount of risk based mostly on the possibility that it could end up being acquired either by one of the big 3 cloud players (AMZN, MSFT, GOOG) or someone that aspires to join that club. When Google and RAX announced a strategic partnership, RAX shot up and while I have not seen much writing about it, I do think this increases the odds that such an event could happen so I’m fine with taking the loss on this one and will likely stay away from a short RAX trade for a little while.

As is always the case, you can see the 2016 (and previous years) long & short trades here

The portfolio year-to-date currently stands at+10,55%

PYPL_RAX_chart (1)

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