I am recommending we take a loss on Squarespace (SQSP). While I like the company, my timing on this trade could not have been worse.
We entered the position in mid-November, shortly after the company announced it had grown revenue 24% year over year in its third quarter. At the time, “growth” was not yet a dirty word on Wall Street. But as the Federal Reserve signaled rate hikes were on the horizon, sentiment turned against high-growth names like Squarespace.
We were assigned shares shortly after entering the position. While we’ve been selling calls for income, the stock’s continued sell-off and the fact that only monthly options are available has made it difficult for us to dig our way out.
With uncertainty high, it’s time to move on from Squarespace and put our money to better use elsewhere.
This loss hurts. There’s no getting around that.
I recommend you count future income against this capital loss. Once you have recouped this loss, you then start counting profits as new income.
To get you back to generating new income, we will be trading aggressively in the second quarter in hopes of making back as much of this loss as we can as fast as possible.
Current Stock Price: $25.14
Cost Basis: $39.25
Action: Sell shares at market
Loss: $14.11, or $1,411 per 100 shares