Spread Thin - Daily Trading Recap 3/26/26
DXYZ LNAI UGRO
TLDR
Longed DXYZ as a SpaceX IPO proxy, chopped around trying to get the entry right
Shorted UGRO from premarket, covered the wash under 25, then re-shorted into a range that went nowhere
Missed LNAI off the open but caught a short later when it bounced
Trades I Took
DXYZ
This one has been gaining strength as a sympathy to the anticipated SpaceX IPO, and it gapped up yesterday before selling off hard. My thesis was that if it could reclaim that gap-up level, it had a shot at catching some momentum from buyers still looking for SpaceX exposure.
I started a long position in premarket but ended up chopping around a bit. I stopped out before I actually hit my real stop level, then got back in. Not my cleanest execution, stopping out early and then re-entering is the kind of thing that turns a fine idea into unnecessary damage.
UGRO
UGRO blew everyone out yesterday into the close and again in after hours, pushing all the way up to around 56 before selling off. I wasn’t around for the after-hours move unfortunately, but it was gapping down this morning and the daily chart still looked like it had room to go lower.
I started short in premarket and added more right before the open, then covered everything on the wash under 25. That initial move worked well. I shorted it a couple more times through the day, but it was stuck in a range and I was trying to squeeze more out of a name that needed time to digest. Looking at the daily, it still hasn’t even printed a red day yet, so the thesis might still be right, but forcing it in a consolidation range wasn’t the move.
LNAI
This was the top gapper on the day, up 124%. I wanted to get short on a bounce off the open, but it just fell apart immediately with no bounces at all, just a straight drop. I couldn’t get involved the way I wanted. Later in the day it finally bounced a bit and I put some shares on short since it was clearly dilutive and didn’t have a real bid underneath it.
Takeaways
Today was a lot of activity spread across a lot of names, and the results were mixed. The UGRO re-shorts after the initial cover and the DXYZ chop are the kind of trades that eat into a day that should have been cleaner. The initial UGRO short was a good read. The lesson is that follow-up attempts to squeeze more out of names that needed time were where the edge got dull.
Tomorrow’s Focus
Take the first good trade in a name and be more selective about going back to the well.
Question for Readers
When you cover a short that’s already moved big, how do you decide whether to take the money and walk away versus holding for more?
Nice work!