Rebalancing act

Pretty big drawdown in the portfolio value over the last few days. Some of my positions had made significant gains and were probably due for a reversal.

Given that, I made some significant changes to the portfolio this morning. I had been carrying a small stake in CRIS. I sold 75% of my position when the company received a surprise, early approval on Jan. 30th. I sold at $5.01. Yesterday the stock made a large move (ahead of earnings). This morning it opened strong and I decided to close the position. The event driving my initial position has past and it seemed like a good price so I got out at $5.50. I initiated the position at $3.62 (Dec. 6th) so the total return was 42%.

I also decided to close my position in CORT. I have only been in CORT since Jan. 31st but it has not yet moved in my favour and the PDUFA is getting close. It also had a good day yesterday but when it failed to follow through on the open this morning I was out at $3.40. Just didn’t seem to be going anywhere. I started the position at $3.35 so essentially a flat trade with that one.

 

 

 

 

 

 

 

 

So I am down to 3 positions: SPPI (which has been a very poor performer since failing to break through $16 on Jan. 23), AMRN (which has had similar problems since failing to hold a break through the $9 level), and Feb. calls on CHTP.

CHTP was slightly up today and I plan on holding onto the calls – small risk potential. I have owned the SPPI for quite a while and my cost base is very low. They have earnings coming up and I will probably hold through that event. I may sell some calls against them. AMRN looks bad to me here. I am up 14% on these shares and would like to realise some of that so I will watch closely tomorrow and may sell some/all of the position if it looks like it’s breaking down below $8.50.

Nearly 50% in cash as of this afternoon. I will be looking for somewhere to put that.

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