Week in Review – April 28 – May 2, 12014


Option to Profit Week in Review
April 28 – May 2, 2014
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Weekly Up to Date Performance

April 28 – May 2, 2014   

New purchases for the week badly trailed the time adjusted S&P 500 by 1.4% and also lagged the unadjusted S&P 500 index by 1.7% during a week that only had 3 new positions opened.

The market ended the week with an adjusted gain for the week of 1.0% and an unadjusted gain of 0.8%. On the other hand, new positions lost 0.7%.

For positions closed in 2014 the performance exceeded that of the S&P 500 by 1.6%. They were up 3.6% out-performing the market by 95.7%, an amount that has remained very high and expanded again this week.

As with most weeks there’s usually something to be pleased about and something that you wish would have gone better.

This week was no different.

I don’t usually use hindsight, but if I did I would have bought more new positions for the week, had I known that I wouldn’t have to be so concerned about having enough free capital to play the game next week.

Last week was ending just how this week appears to be, with heightened concerns about Russia and Ukraine getting out of hand.

The difference is that last week finished very weakly and fewer positions were assigned than new positions were purchased, resulting in less cash reserves than I would have liked.

This week the concerns seem more grave, yet the market is more calm, if you ignore precious metals.

But with that calmness came a nice number of assignments and a nice number of rollovers, which I think made up for the lack of new purchases and thanks to Coach, their less than stellar performance.

In all, it was a little of everything, but especially meeting the dual objectives of getting some additional cover for uncovered positions and cleaning house a little.

With a lot more cash in hand to begin next week than the last I am less concerned about a sudden flash point overseas and strictly from a stock market opportunism perspective would welcome some broad based selling to start the week.

Better next week than this past one..

However, in addition to preferring peace and diplomacy, I would also rather still see more positions get their cover than pick up some bargains right now, so that will be the priority for me, again.

Not that you really have any control over that sort of thing.

Any precipitous weakness may change that fairly quickly, at least once it seems as if some stability is reached. But in the event of market strength to open the week the goal will be to continue getting new cover and seeing more positions subject to assignment.

This coming week earnings do slow down a bit so that factor will be downplayed, although the market itself hasn’t taken much in the way of cues from earnings. Instead it’s been a story of individual stocks either getting brutally punished or less frequently getting exalted, as the market hasn’t been very forgiving, but also hasn’t been all that laudatory.

With both the FOMC and Employment Situation Reports being essentially non-events and with earnings drying up those extraneous events, such as armed conflict overseas can get magnified, so it will be another interesting week coming up, but then again, aren’t they all?




This week’s details may be seen in the Weekly Performance spreadsheet * or in the PDF file, as well as as in the summary.below

(Note: Duplicate mention of positions reflects different priced lots):

New Positions Opened:  COH, CY, DOW

Puts Closed in order to take profits:  none

Calls Rolled over, taking profits, into the next weekly cycle:  GM, GPS, LOW, TXM, UNH

Calls Rolled over, taking profits, into extended weekly cycle:  none

Calls Rolled over, taking profits, into the monthly cycle:  none

Calls Rolled Over, taking profits, into a future monthly cycle: IP (June 2014)

Calls Rolled Up, taking net profits into same cyclenone


Put contracts sold and still open: none

Put contracts expired: none

Put contract rolled over: none

Long term call contracts sold:  none

Calls Assigned:   AIG, BBY, CMCSA, DOW, JPM, KSS, MOS, PM

Calls Expired:   BX, COH, FDO

Puts Assigned:  none

Stock positions Closed to take profits:  BMY (for those that weren’t assigned last week)

Stock positions Closed to take losses: none

Calls Closed to Take Profits: none

Ex-dividend Positions:  TXN (4/28 $0.30), C (5/1 $0.01)

Ex-dividend Positions Next WeekSBUX (5/6 $0.26), MET (5/7 $0.35), Wy (5/7 $0.22), WLT (5/8 $0.01)



For the coming week the existing positions have lot
s that still require the sale of contracts:   AGQ, BX, C, CLF, COH, DRI, FCX, FDO, GM, JCP, LULU, MCP, MOS,  NEM, PBR, RIG, TGT, WFM, WLT, WY (See “Weekly Performance” spreadsheet or PDF file)

* If you don’t have a program to read or modify spreadsheets, you can download the OpenOffice Suite at no cost.