It’s almost too painful to watch. I think it might be finally time to abandon this CGC top heavy ship. Down again today another 4%, around $70.
My account balance has tumbled down to $1,623. Now if I’m going to start my Option Alpha journey with a $2,000 splash, I’ll have to add in another $400 just to get started. So painful. I was just hoping to catch a bounce before selling.
Today’s Positions
- Canopy Growth Corp. (CGC): 40 shares @ $23.49 (-6.19%)
- YETI Holdings, Inc. (YETI): 10 shares @ $26.34 (2.17%)
- Baytex Energy Corporation (BTE): 200 shares @ $1.16 (-4.92%)
- Microsoft Corp. (MSFT): 1 share @ $135.75 (0.21%)
But, between family being in town and being out of commission with the sickness, I haven’t yet had a chance to start on the Intermediate Option Alpha course. So, even if I were to sell my current shares and move the money from Robinhood to TD Ameritrade, I am not yet confident in my ability to begin attempting the OptionAlpha strategies.
The other thoughts that keeps lingering in the back of my mind are…
- What if Canopy is about to break out on another tear?
- Could lightning strike a third time?
- And if so, should I load up on shares at the current low price?
Take a look at these charts.
Canopy Growth has been here twice before, in the low to mid $20s.
Shortly after being listed on the NYSE, CGC hit a low of $24.31 on July 30, 2018. This launched its tear over the next 39 days to a peak of $51.53. If you bought at the low and sold at the high, you could have netted a cool 111% gain in just over one month.
Fast forward to December 21, 2018, and CGC once again hits a low of $26.22. Over the next 42 days reaches a high of $48.88. Again, if you bought at the low, and sold near the peak, you could have netted another 86% gain.
My current average cost into CGC is $37.20. I could sell off YETI, MSFT, and BTE, and with adding a little bit of extra cash buy 30 shares of CGC for its current price of $23.53. My new average cost would be $31.34 per share.
Then, if CGC goes on another tear up to $50, I could sell all 70 shares for right around $3,500. I’m just not sure what trigger or event would cause lightning to strike for a third time. Of course, I’m not naive enough not to notice how simple such a statement is… “if the stock just doubles, then I’ll double my money!”
FNMNY 