Trade Alert: Portfolio 1 - Growth - Closing Winners

Date: February 25, 2026 - textbook trade management

SQTC Squared T Capital Online

Feb 26, 2026

Taking Profits + Playing the Lottery

Portfolio 1 closed 5 positions , including half of our “lottery ticket” trade and several 50% profit winners.

Summary:

3 winners closed at 50% profit targets
1 lottery ticket trade closed half of the position (CRCL)
1 +1/-1/-1 structure closed for profit

Net Result: Locked in gains, reduced risk, freed capital

The Lottery Ticket: CRCL Call Spreads

What We Did:

February 24:

Bought: 20 CRCL Jun 18 100/110 call spreads @ $0.71 debit ($1,420 total)
Max Risk: $1,420 (what we paid)
Max Profit: $18,580 (if CRCL above $110 at expiration)

February 25 (Today):

Sold: 10 CRCL Jun 18 100 calls @ $2.03 credit ($2,030)
Result: Took profit on HALF the position, recovered 143% of initial investment

The Lottery Ticket Strategy:

What is a “lottery ticket” trade?

Small capital at risk ($1,420)
Asymmetric payoff (potential $18,580)
Long-dated (114 DTE)
High conviction on directional move

Why CRCL?

Specific catalyst/thesis (not disclosed publicly)
Risk small enough to lose 100%
Reward large enough to matter if right

Today’s Action:

Sold HALF the position for $2,030
Original cost: $1,420
We’re now playing with house money (recovered 143% of cost)
Still own 10 call spreads with zero risk

This is how you play lottery tickets: Take profit on part, let rest run for free.

The 50% Winners

Winner #1: /MES 6500 Put

Closed: 1 /MES Apr 17 6500 Put @ $49.00 debit
Original: Sold for ~$105.50 (from prior week data)
Profit: ~$282.50 ($56.50 × $5 multiplier)
Gain: ~54% of max profit
Rule: Close at 50% profit ✅

Winner #2: /MES 6675 Put

Closed: 1 /MES Mar 20 6675 Put @ $44.75 debit
Original: Sold for ~$103.50 (from prior week)
Profit: ~$293.75 ($58.75 × $5)
Gain: ~57% of max profit
Rule: Close at 50% profit ✅

Winner #3: SPY 670/640 Vertical

Closed: 1 SPY Mar 20 670/640 vertical @ $4.22 debit
Original: Sold for premium (vertical closed for profit)
Profit: Variable (closed for nice gain per notes)
Rule: Close profitable verticals before expiration ✅

The +1/-1/-1 Structure Closed

Closed Our SPX +1/-1/-1 Trade:

Opened Feb 23:

Buy 1 × 6690 put @ $86.93
Sell 1 × 6640 put @ $75.72
Sell 1 × 6340 put @ $32.41
Net credit: $21.20

Closed Today:

Bought back 1 × 6340 put @ $8.10
Bought back 1 × 6640 put (not shown, included in structure)
Sold 1 × 6690 put @ (closing)
Result: “Closed for a nice profit” per notes

Why Close After 2 Days?

Hit profit target quickly
SPX rallied (reduced put values)
Locked in gains rather than hold through expiration
Rule: Take profit when it’s available, don’t be greedy

Combined Impact

Profits Locked In Today:

/MES winners: ~$576 combined
SPY vertical: Profit realized
+1/-1/-1 structure: Nice profit
CRCL lottery: $2,030 (143% of initial cost recovered)

Capital Freed:

/MES buying power released (~$4K-6K)
SPY vertical capital freed
+1/-1/-1 buying power released (~$90K)
Total freed: ~$95K-100K+ buying power

Risk Reduced:

5 positions closed = less management
Lottery ticket now “house money” (no risk remaining on 10 spreads)
March expiration exposure reduced further

Key Lessons

Lesson #1: The 50% Rule Works

We closed two /MES puts at 54% and 57% profit.

Why not hold for 100%?

Time risk (market can reverse)
Opportunity cost (capital tied up)
Gamma risk (accelerates near expiration)

50% rule: Lock in half the max profit, move on to next opportunity.

Lesson #2: Lottery Tickets Require Discipline

The mistake most traders make:

Let winners become losers
Hold lottery tickets to zero
Never take profit

What we did:

Sold HALF at 143% profit
Now own 10 spreads risk-free
If CRCL explodes: Still participate
If CRCL fails: Already won

Take profit on part. Let rest run.

Lesson #3: Don’t Marry Positions

The +1/-1/-1 was opened 2 days ago for 24 DTE.

We closed it today.

Why? It was profitable. Take it.

Don’t marry positions. Marry rules. If rule says close, close.

Lesson #4: Freeing Buying Power = Opportunity

We freed ~$95K-100K in buying power today.

This isn’t “sitting in cash.” It’s:

Waiting for better opportunities
Reducing risk after winners
Keeping powder dry
Staying defensive

Capital preservation > capital deployment.

What’s Next

This Week:

Continue March → April transitions (Portfolio 2 style)
Look for new put-selling opportunities with freed capital
Monitor CRCL lottery ticket (10 spreads remaining, house money)
Stay disciplined on 50% profit rule

Portfolio Status:

Buying power: Likely back to ~17-20% (freed ~$100K)
Position count: Down to ~35 from 40
Risk: Reduced significantly
Dry powder: Ample for opportunities

Final Thought

Today = textbook trade management.

✅ Closed 50% winners (discipline)
✅ Took profit on lottery ticket (sold half, recovered 143%)
✅ Closed +1/-1/-1 for profit after 2 days (no marriage)
✅ Freed $100K buying power (opportunity)

Most traders:

Hold winners too long (become losers)
Never take profit on lottery tickets (expire worthless)
Marry positions (hold through losses)
Stay fully invested (no dry powder)

We did the opposite.

This is why rules beat emotions.

Trade YOUR size. Follow YOUR rules. Take profits.

— TonyB & TonyR
Grow Your Pile

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