Under Some Pressure, We're Looking to Take Advantage of This Rally
Here's an update on our small-cap portfolio after a full week of trading.
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Portfolio Update: Adding Names to the Bullpen; Plus News on Nvidia and PepsiCo
On Monday evening, Rocket Labs (RKLB) announced that the firm had received regulatory approval by the German Federal Ministry for Economics and Energy to acquire Myrnaric.
This paves the way for the transaction to close at some point in April. Myrnaric is a Munich-based operation that develops optical terminals capable of transmitting data between satellites through the use of lasers. This technology would be seen as pivotal in taking the next steps in placing both defense and commercial constellations in orbit.
The U.S. Space Development Agency (SDA) is a client of Myrnaric's. Rocket Lab already has a contract with the SDA to produce 36 satellites across two programs and Myrnaric is already a subcontractor to the deal.
In other news, analyst Moshe Orenbuch of TD Cowen took over coverage of SoFi Technologies (SOFI) from the firm's previous analyst. Orenbuch reiterated the firm's "hold" rating but did reduce the firm's target price from $24 to $17. Orenbuch is rated at five stars out of five by TipRanks.
Taking Advantage of Tuesday's Rally
The $10,000 Portfolio, which has been under pressure since its inception last week, will try to take advantage of the Tuesday rally, should it evaporate and reduce net basis through the sale of covered calls where possible. After publication, the Portfolio intends to:
-Sell one April 24 $9.50 (ONDS) $9.50 call for a rough $0.50
-Offer one May 8 $8.00 (OCUL) call at $1.00 (or better). The spread is wide and the series is illiquid, so this may not get done.
Current Positions
Long 125 shares of SOFI at $16.046. Last sale: $15.39.
Long 125 shares of OCUL at $8.061. Last sale: $7.73.
Long 125 shares of ONDS at $9.4749. Last sale: $8.34.
Long 7 shares of (PLTR) at $149.25. Last sale: $141.34.
Long 15 shares of RKLB at $67.1653. Last sale: $59.07.
Long 50 shares of (INFQ) at $9.965. Last sale $9.19.
Short 1 SOFI May 15 Call at $1.01. Last sale: $0.60.
Cash: $3,352.26.
Portfolio Value: $9,566.26, -6.53% from inception.
Related: 3 Potential Outcomes in Iran and What They Mean for Financial Markets
At the time of publication, Guilfoyle was long SOFI, OCUL, ONDS, PLTR, RKLB and INFQ; and short one SOFI call.
