We are selling one of our positions today to capturing large gains. See the details below:

Ticker: INSP

• Name: Inspire Medical Systems

• Sell Price Range: $128.00

• Profit/Loss:  -22.9% Loss

• Why We are Selling: INSP was a stock that had such a significant drop that we gambled a bit that it would rebound. It never did. Time to get rid of it before earnings and live to fight another day

Ticker: ACHC

• Name: Acadia Healthcare

• Sell Price Range: $66.50

• Profit/Loss:  -4.6% Loss

• Why We are Selling: ACHC was a part of our healthcare play and just never took off. We are selling at a small loss before earnings.

Ticker: NXT

• Name: Nextracker

• Sell Price Range: $47.5

• Profit/Loss:  -19.4% Loss

• Why We are Selling: We’ve been patient with NXT but time to cut it loose and move our capital to something that can be a winner for us

Ticker: MLCO

Name: Melco Resorts

Management Type: Collar Strategy

Disclaimer: Best to have 100 shares of MLCO to do this. Buy/Sell 1 option for every 100 shares

• Buy a $6 strike Put option for 8/23 expiration (@ $0.50 per contract)

• Sell a $8 strike Call option for 8/23 expiration (@ $0.38 per contract)

What this provides us:

Limits our losses. Currently we are at a 21% loss for this position. This strategy will essentially cap our loss at this same level but provides upside over the next month for it to recover. So we are buying ourselves time

Why do this? Why not just sell you might be asking? With a capped loss it gives the position time to recover. Analysts still have this as a “Strong Buy” so we are just giving the stock some time to realize that. Maybe we don’t get back to positive but even recovering some of our loss is a win over the next month