Option to Profit
Week in Review
October 12 – 16, 2015
|NEW POSITIONS/STO||NEW STO||ROLLOVERS||CALLS ASSIGNED/PUTS EXPIRED||CALLS EXPIRED/PUTS ASSIGNED||CLOSED||EX-DIVIDEND|
|3 / 3||2||0||3 / 0||2 / 0||0||2|
Weekly Up to Date Performance
Following multiple consecutive weeks of indecisive trading, last week was anything but indecisive, but this week we were back again to not knowing what we want.
There were 3 new positions opened for the week and they surpassed the adjusted S&P 500 by 0.5% and the unadjusted and adjusted S&P 500 by 0.6%
Those positions were 1.6% higher for the week while the adjusted S&P 500 finished 1.1% higher and the unadjusted S&P 500 finished 0.9% higher.
This week it was the turn for weakness to re-appear in energy and materials. Existing positions were lower for the week and this time they lagged the overall market, just as previous weeks they were lead higher by energy and materials.
For the year the 62 closed lots in 2015 continue to outperform the market. They are an average of 4.9% higher, while the comparable time adjusted S&P 500 average performance has been 1.1% higher. That difference represents a 339.2% performance differential.
Earnings reports started coming this week and they were, if nothing, confusing.
The market took some big moves during the week, but for no real reason. What happened was simply a return to much of the summer when there was a back and forth volley between large moves higher and equally, if not larger moves lower.
This week the market ended up with a net result that took the middle ground and at least gave little to lose any stomach lining over, although these days individual shares are prone to erode more lining than ever before.
Actually, the combination of large moves up and large moves lower that leaves you with a net positive can actually be as close to an ideal situation as you can define, because those back and forths drive up volatility supported option premiums while at the same time seeing assets grow, rather than getting eroded.
It was another week that saw more new positions established than had been the case during most of the summer and I’m happy to see that continuing to be the case. Next week it would be easier to continue on that path if the week opens with some significant weakness and closes with strength.
Those are by far the best.
WIth another week having some assignments I’m also happy to see some cash getting put back into the still all too small pile and wouldn’t mind putting the money back to work next week.
A couple of new positions finding cover and a couple of ex-dividend positions for the week generated enough income to keep me pacified over the week, although there were also 2 positions that saw their options expire.
Next week continues earnings and they actually will be much more representative than this week had been, which was predominated by the financials.
I’m definitely open to putting money to work, as next week doesn’t have very many expiring positions and only a single ex-dividend position. The challenge will be trying to discern between value and value traps.
Lately there has been a lot of luck as most of the recent new positions represented real value, but as we still see from day to day, the market is very capable of moving strongly in any direction and without requiring a reason for doing so.
While I’m willing to spend money next week, that would be much more likely if the market is either flat or lower to start the week. Today’s gain continues the market’s resurgence that started two weeks earlier and had been almost uninterrupted. A little bit of a breather or some movement backward to fill in the ground beneath the more than 6% gain the past week would be really nice.
(Note: Duplicate mention of positions reflects different priced lots):
New Positions Opened: ABBV, ANF, MET
Puts Closed in order to take profits: none
Calls Rolled over, taking profits, into the next weekly cycle: none
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: none
Calls Rolled Up, taking net profits into same cycle: none
New STO: GDX ($21 12/15), GDX ($22 1/15/16)
Put contracts expired: none
Put contracts rolled over: none
Long term call contracts sold: none
Calls Assigned: ABBV, ANF, MET
Calls Expired: EMC, MRO
Puts Assigned: none
Stock positions Closed to take profits: none
Stock positions Closed to take losses: none
Calls Closed to Take Profits: none
Ex-dividend Positions: FCX (10/13 $0.05), ABBV (10/13 $0.51)
Ex-dividend Positions Next Week: FAST (10/23 $0.28)
For the coming week the existing positions have lots that still require the sale of contracts: AGQ, ANF, AZN, CHK, CLF, COH, CY, FAST, FCX, GDX, GPS, HAL, HPQ, INTC, JCP, JOY, KMI, KSS, LVS, MCPIQ, MOS, NEM, RIG, WFM, WLTGQ (See “Weekly Performance” spreadsheet or PDF file)
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