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LivestreamMenuWe’re selling 12 shares of Arm Holdings at roughly $325 each. Following Tuesday’s trade, Jim Cramer’s Charitable Trust will own 118 shares of ARM, reducing its weight in the portfolio to 1% from 1.11%. We’re selling a small amount of Arm for three reasons. First, we want to protect against the stock giving back its parabolic move. We’re not catching the all-time high here, but shares are still up nicely since our prior sale around $314 two weeks ago. We’ll realize a gain of about 88% on stock bought back in April. Second, similar to our other two Arm sales, we are trimming the position back to a 1% weighting in the portfolio. The idea is that at 1%, we can better manage the risk of this exponential move by bringing the position closer to our original weighting. It also allows us to raise cash to fund other purchases or potentially buy back Arm shares if the stock were to pull back. ARM YTD mountain Arm Holdings YTD Third, more broadly, we’re still a little cautious about the market setup over the next few days. On Wednesday morning, a hot consumer price index could strengthen the case for interest rate hikes later this year, and we still think the market will have a difficult time absorbing supply from the upcoming IPO of SpaceX, which starts trading Friday, and potentially additional stock sales from hyperscalers. Those concerns — outlined by Jim in his Sunday column — were the primary drivers behind our two sales on Monday. Those concerns were the primary drivers behind our two sales on Monday. (Jim Cramer’s Charitable Trust is long ARM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.Read More
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