The Anti-Social Trade
- Miguel Ferreir (WizDayTrader)
- Mar 8, 2023
- 2 min read
Taking profits on Social Media Companies and getting short another: $META, $SNAP, & ???
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Welcome new subscribers!
Social media has become ubiquitous in our lives, and new companies are popping up daily with dazzling promises of connecting and empowering people. But, as always, not every company will survive, and savvy investors can and should make a profit while they can.
In this blog post, I will discuss how to identify potential opportunities to take profits on social media companies and hedge your bets by getting short on another. We will explore the different strategies available to professionals in the industry and offer advice on how to make the best decisions in order to maximize your returns.
$META hit the 38.2% retracement from it's daily highs and we took profits of 65% on the majority of our stake in this position. We will leave a 1/4 on and see how it acts as the market pulls back this year and look to increase later as it is outperforming its competitors.
We took profits in $SNAP yesterday as we retested and all time high on a daily basis and got a wicked reversal. Nice for a short term trade, but not enough for comfort longer term.
We short $SOCL yesterday. The Global X Social Media ETF (SOCL) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Social Media Total Return Index. If we are taking profits in META and SNAP while the index is not even hitting new highs its a safe bet to short it.
We are short below $35.79 with a target of $32, we can add some March 17th $29 Puts, Open Interest is 51.
In this blog post, we discussed the different strategies available to investors to capitalize on the fast-paced growth of social media companies. By understanding how to identify potential opportunities to take profits and hedge your bets, you can maximize your returns and increase your chances of success.
So, take action today and start looking for potential opportunities to take profits and short the companies you believe could be at risk. Don't wait - the rapidly changing landscape of the industry means that you must act quickly to take advantage of these potential gains!
Remember to trade confidently!
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