Immediately after the opening bell, you will sell 55 shares of Arm Holdings stock for approximately $314 per share. After Tuesday’s trading, the Jim Cramer Charitable Trust will own 130 shares of ARM stock, dropping its weight from 1.44% to about 1%. Following another big rally, it will lock in yet another big gain for Arm. The chip designer’s stock rose 46% last week, about half of which came after Nvidia said on an earnings call that its Arm-based Vera CPUs are expected to generate $20 billion in revenue this year. This is great for Arm’s loyalty business. We wrote on Friday’s HomeStretch about how we planned to handle this second parabolic movement since we started the arm position on April 20th, about five weeks ago. Arm’s recent outperformance has increased its position weight in the trust from 1% after trimming last Monday to approximately 1.45% as of Friday’s close. By further trimming back to 1%, we can better manage the risk of this exponential movement by bringing the position closer to its original weight. It also allows us to raise cash to fund other acquisitions or buy back Arm shares if the stock price declines. ARM 3M Mountain Arm Holdings 3 Months More broadly, I don’t buy parabolic moves. we profit. That’s because stock prices can fall just as quickly as they can rise. It may mean that our sales are not made at the absolute highest price, but it would be a violation of our discipline to let them run. This trade represents a significant gain of approximately 80% on the shares purchased at the start of April. (Jim Cramer’s charitable trust is long ARM, NVDA. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
