Before the election, I looked at companies that could be interesting on a Trump or Biden win respectively. I looked at other things too. For example, I put out a note on the iShares S&P Global Clean Energy Index ETF (ICLN) Surging On Biden Lead and said it is no good. But it gained almost 10% since that day.
I
put on a position
in MoneyGram (MGI) at $4.88 and NorthWestern Corporation (NWE) at $55.66. I figured both should have a high beta to a Biden win, based on recent data. What I liked about these specific companies, especially in the case of MGI, is that I did not expect a major pullback in case of a Trump win.The S&P 500 (SPY) is up 3.88%, so both positions worked out quite well:
One, some would argue rather obvious, trade I missed is the cannabis trade. The ETFMG Alternative Harvest ETF (NYSEARCA:MJ) is up an impressive 21.88% since the election. I probably missed it because I'm biased against this space. It's not that the idea of cannabis use is repulsive to me, but I've never understood it from a business sense.
I actually had a few small short option positions in individual names in this sector. The positions were small to start with. The positions worked really well and became very small. I didn't pay enough attention to the idea that a Biden win could be a catalyst and paid for it as it surged.
I looked at this ETF really quickly to see if I could do something with it or if there's something interesting going on with its options chain. There are a lot of securities that I'll just spend a few minutes on, quickly going through their documents or holdings in the case of
