420 FRIENDLY · BFIN 420R · FALL 2026
THE 420
INDEX
How three students turned a simulated $1,000,000 into $311,219, and why we're blaming cannabis.
Follow the loss. Make five calls. Leave with four rules.
SCROLL TO PLAY ▼
PLAYER SELECT
The plan on paper
OBJECTIVE
Long-term growth from a diversified portfolio of American and international cannabis companies.
BENCHMARKS
The S&P 500, a composite of sector ETFs weighted like our stocks, and our own 420 Index.
OPTIONS OVERLAY
Tactical SPY and QQQ options on a short-term view, sized as a small part of the account.
What actually happened: 65% into cannabis on day one, then short-dated QQQ options for most of October.
SCOREBOARD · AUG 31 – OCT 26, 2026
We trailed every benchmark.
Including our own.
StockTrak shows the account at $311,219 at the Oct 26 close. Two same-day calls expired after the close for $28,600 less, so the next update reads about $282,600.
REPLAY · GROWTH OF $100
Day zero. A million simulated dollars and a lot of confidence.
WHERE THE $688,781 WENT
The official story:
cannabis did this.
(Please don't read the chart.)
BOSS LEVEL · OUR CUSTOM BENCHMARK
Meet the 420 Index
HOW IT'S BUILT
- Every cannabis stock we bought on day 1, September 9
- Weighted by the dollars we paid: $651,274
- Bought once and held to October 26
- No rebalancing; dividends included
| STOCK | COST | WEIGHT | OCT 26 | RETURN |
|---|---|---|---|---|
| IIPR | $216,978 | 33.3% | $210,648 | −2.9% |
| TRLV | $215,932 | 33.2% | $188,722 | −12.6% |
| GLAS | $218,364 | 33.5% | $55,499 | −74.6% |
| 420 Index | $651,274 | 100% | $454,869 | −30.2% |
IIPR's value includes its $7,201 dividend.
THE BET
Why we bought: Schedule III
END SECTION 280E
Cannabis companies can't deduct ordinary operating costs, so they pay tax on gross profit. Schedule III ends that.
BANKING ACCESS
Rescheduling eases access to banks and credit for U.S. operators.
EXCHANGE LISTINGS
A path for U.S. multi-state operators to list on major exchanges, and for institutions to buy them.
April 2026: medical cannabis moved to Schedule III. We bought on September 9 as if adult use were a formality.
CUTSCENE
Then the catalyst broke
Medical cannabis moves to Schedule III.
The adult-use rescheduling hearing runs. The market treats the rest as a formality.
We buy the 420 Index: $651,274, 65% of the account.
A GAO report questions the DEA's scheduling process.
We sell. MSOS, the U.S. cannabis ETF, has its worst day: −11%.
The adult-use hearing is stayed pending more briefing. No ruling date.
Supplemental briefs, then replies, are due.
A federal ban on intoxicating hemp takes effect, cutting a revenue line many operators leaned on.
Final briefs in the D.C. Circuit challenge to the medical rescheduling.
Regulatory dates: team research. Prices: Yahoo Finance.
THE SECTOR REPRICED FAST
MSOS, Jul 1 – Oct 26
OUR THREE NAMES
And Glass House's problem
GLASS HOUSE, Q3 PRELIMINARY
Revenue, year over year
Average selling price per pound
Saved by selling the 420 Index on Sep 30. Our best trade was a sell.
Glass House figures: team research. Prices indexed to 100 on Sep 9 (Yahoo Finance).
BONUS STAGE · OCT 15 – 26
Dogfight
Tap the screen or use the fire button. (It won't change history.)
Bandits on our six.
STATS
Risk came from option size,
not stock picks
SEPTEMBER 30
- 10 stocks in 5 sectors, matching the composite
- One QQQ call, 42% of NAV
- Margin loan $234,815
OCTOBER 26
- 2 stocks, both financials (CME, JPM)
- QQQ calls are 85% of NAV
- Margin loan $32,234
SAVE FILE · OCTOBER 6
Our plan from October 6
NEW GAME+
Rules for the final, ones we can check
- EXIT AT ENTRYEvery option gets a take-profit and a stop the moment we buy it.
- NO SAME-DAY OPTIONSNothing that expires the day we buy it.
- REBUILD A STOCK CORELarge caps across sectors, with the composite benchmark updated to match.
- THESIS PER TRADECatalyst, valuation and exit point, written in the trade note.
FINAL BOSS
A wild S&P 500 appeared!
GAME OVER
CONTINUE? 9
INSERT COIN · BACK TO THE ARCADETHE 420 INDEX
a 420 Friendly production
PILOTGarrett Summers
NAVIGATORBennett Rothhammer
TAIL GUNNERTrent Dozois
VILLAINSTHETA & IV CRUSH
FINAL BOSSThe S&P 500
BENCHMARKThe 420 Index
PROFESSORAilin Chen
DATAStockTrak · Yahoo Finance
MUSICan 8-bit synth in your browser
ACHIEVEMENTS0 / 11
NO REAL MONEY WAS HARMED
CREDITS
420 Friendly: Garrett Summers, Bennett Rothhammer and Trent Dozois. BFIN 420R, Section 003, Professor Ailin Chen, Montana State University.
Account data: our simulated $1,000,000 StockTrak account, through the October 26, 2026 close. Prices: Yahoo Finance. Regulatory timeline and Glass House figures: team research. The 420 Index value assumes the day-one cannabis basket was held and its dividend kept as cash.
A class project, not investment advice. Please do not trade like this.