$Butterfly Network(BFLY.US)
Context: I entered BFLY at $4.65 before the stock’s major run. In June, Midjourney Medical unveiled a full-body imaging platform using Butterfly’s ultrasound-on-chip technology, sending BFLY sharply higher. I trimmed half at $6.99 during the initial surge. After the catalyst attracted more attention and the rally continued, I added part of the position back at $8.30 during the subsequent pullback. Strong Q2 results later supported the move, with revenue increasing 39% year-on-year, gross margin reaching 71%, and management raising its full-year outlook.
My trade: Still holding, currently up 58.7%. The first trim secured profit, while the later addition restored some exposure after the Midjourney announcement changed the market’s expectations for the company.
Takeaway: Taking profit during a sudden spike helped manage risk, but trimming half immediately left me chasing part of the position back higher. Next time, I would scale out in smaller stages when a meaningful catalyst may continue driving the stock.
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