27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
In a strategic maneuver on Wednesday, Cathie Wood-led Ark Invest made notable adjustments to its portfolio, demonstrating a keen insight into the evolving market landscape. The firm’s decision to increase its holdings in Tesla Inc (NASDAQ:TSLA) and META Platforms Inc (NASDAQ:META), while reducing its stake in Coinbase Global Inc (NASDAQ:COIN) and NVIDIA Corp (NASDAQ:NVDA), signals a calculated response to recent developments and future growth prospects.
The Tesla Trade
Ark Invest’s acquisition of 145,455 Tesla shares, valued at $27.45 million, underscores Cathie Wood’s confidence in the electric vehicle giant amidst market fluctuations. The transactions were made through ARK Innovation ETF (NYSE:ARKK), ARK Autonomous Technology & Robotics ETF (BATS:ARKQ), and ARK Next Generation Internet ETF (NYSE:ARKW). On Wednesday, Tesla shares closed 2.55% higher at $188.71.
This move aligns with Wood’s optimistic view on Tesla’s growth trajectory, further emphasized by the firm’s continued investment despite Tesla’s fourth-quarter earnings miss and the surrounding discussions on Tesla’s recovery and Elon Musk’s compensation controversy.
The Coinbase Trade
Coinbase shares worth $34.33 million were purchased by Ark on Wednesday. The 214,068 shares were purchased through ARKK, ARKF, and ARKW. On the day, Coinbase shares rallied 14.2% at $160.38.
Earlier last month, Ark Invest halted selling Coinbase shares, reflecting a nuanced approach to its investments amidst the cryptocurrency exchange’s rally and the then buzz around a potential spot Bitcoin (CRYPTO: BTC) ETF approval by the SEC. This pause in selling, after consistent offloads since July 2023, suggested a strategic profit-taking move by Ark, considering Coinbase’s significant weight across its key funds and the overall positive trajectory of cryptocurrency-related assets.
See Also: Cathie Wood’s Ark Invest Lost More Than $14B In Wealth Over Past Decade, Report
The NVIDIA Trade
Ark’s decision to sell 10,601 shares of NVIDIA Corp, totaling $7.83 million, reflects a strategic pivot amidst the AI sector’s valuation discussions. The sale was made through ARKQ. Nvidia shares closed 2.46% higher at $739 on Wednesday.
Despite Nvidia’s significant role in AI development, concerns over its “really expensive” valuation prompted Ark to adjust its holdings, highlighting the firm’s agile investment strategy in response to market dynamics.
The Meta Platforms Trade
The firm purchased 7,796 shares of Mark Zuckerberg-led Meta on Wednesday. The transaction, via Ark Fintech Innovation ETF (NYSE:ARKF), was valued at $3.69 million. Meta shares closed 2.86% higher at $473.28 for the day.
Following a robust fourth-quarter earnings report, Ark Invest’s interest in Meta Platforms is backed by analyst upgrades and Meta’s announcement of its first quarterly dividend. Analysts’ increased price targets and the company’s revenue acceleration and product innovation underscore Meta’s strong position in the market, aligning with Ark’s investment strategy focused on growth and efficiency.
Other Key Trades:
- Increased investments in biotech firms like Intellia Therapeutics Inc and Ginkgo Bioworks Holdings Inc, indicating a bullish outlook on genomics.
- Diversified its portfolio by acquiring shares in emerging companies such as Robinhood Markets Inc and Spotify Technology SA, showcasing confidence in digital and tech-driven growth sectors.
Photo via Ark Invest.
Read Next: Cathie Wood Blasts Delaware Court’s Move To Rescind Elon Musk’s $56B Tesla Pay As ‘Un-American’
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27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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