Daily Market Update – February 18, 2016 (Close)

 

 

 

Daily Market Update – February 18, 2016 (Close)

After yesterday’s gain, which came on top of Friday’s 300+ points and Tuesday’s 200+ points, February 2016 has gone from having started last week as even worse than January 2016 to actually being in the black.

That’s quite an achievement.

The real test is how the market handles such gaps higher.

798 points on the DJIA in just 3 trading sessions is pretty good by all measures.

What it has done is to bring the DJIA to some near term resistance.

While the S&P 500 is also at a near term resistance level, it does have another minor resistance level about 12 points higher.

After that, if you believe in charts, it’s do or die, as the next resistance level for both indexes is much higher.

On the DJIA it’s about 1200 points higher and for the S&P 500 it’s about 150 points higher.

What would be good would be to see the gains coming in smaller sizes and taking a day off every now and then to digest those gains.

But that would be the rational thing to do.

And today the market did the rational thing.

Although I had hoped that the gains would keep going for at least the final 2 days of the week.

Although it does look like there will finally be an assignment, the first in 2016, I’d love the idea of actually also being able to roll anything within the small number of expiring positions. Even going out a few months would be nice and also a nice change of pace.

Unfortunately,with the market taking the day off today, it wasn’t the time to find those opportunities popping up.

The futures were mildly higher this morning, with again, no real news to account for anything, although Asian markets were again nicely higher.

As the day progressed the market gave up its gains as oil led the way also giving up its gains.

The story seems to still be one of oil, but more and more the lessened possibility of increasing interest rates seems to be having a calming effect on traders.

At some point and I thought that point would have been here at least a quarter ago, there has to be some evidence that earnings are getting better in organic terms.

At some point there has to be a real reason for the market to go higher and not just on paradoxical reactions to bad news or from stock buybacks.

That would be nice, but I’ve waited a long time for the past to return.

In the stock market it usually does, but usually much more quickly than this macro-cycle has been doing.

For now, I’m still patient. Who knows, even oil may make some kind of a meaningful comeback.

Stranger things have happened.



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.



Daily Market Update – February 18, 2016

 

 

 

Daily Market Update – February 18, 2016 (7:30 AM)

After yesterday’s gain, which came on top of Friday’s 300+ points and Tuesday’s 200+ points, February 2016 has gone from having started last week as even worse than January 2016 to actually being in the black.

That’s quite an achievement.

The real test is how the market handles such gaps higher.

798 points on the DJIA in just 3 trading sessions is pretty good by all measures.

What it has done is to bring the DJIA to some near term resistance.

While the S&P 500 is also at a near term resistance level, it does have another minor resistance level about 12 points higher.

After that, if you believe in charts, it’s do or die, as the next resistance level for both indexes is much higher.

On the DJIA it’s about 1200 points higher and for the S&P 500 it’s about 150 points higher.

What would be good would be to see the gains coming in smaller sizes and taking a day off every now and then to digest those gains.

But that would be the rational thing to do.

I just hope that the gains keep going at least for the next 2 days.

Although it does look like there will finally be an assignment, the first in 2016, I’d love the idea of actually also being able to roll anything within the small number of expiring positions. Even going out a few months would be nice and also a nice change of pace.

The futures are mildly higher this morning, with again, no real news to account for anything, although Asian markets are again nicely higher.

The story seems to still be one of oil, but more and more the lessened possibility of increasing interest rates seems to be having a calming effect on traders.

At some point and I thought that point would have been here at least a quarter ago, there has to be some evidence that earnings are getting better in organic terms.

At some point there has to be a real reason for the market to go higher and not just on paradoxical reactions to bad news or from stock buybacks.

That would be nice, but I’ve waited a long time for the past to return.

In the stock market it usually does, but usually much more quickly than this macro-cycle has been doing.

For now, I’m still patient. Who knows, even oil may make some kind of a meaningful comeback.

Stranger things have happened.



.

.



Daily Market Update – February 17, 2016 (Close)

 

 

 

Daily Market Update – February 17, 2016 (Close)

What was good about yesterday was much more than the fact that the market climbed more than 200 points.

What was also good was that the climb higher was also a broad one, but even that wasn’t what was really good about yesterday.

What was really good was that the market, which may have been buoyed by early reports of an OPEC agreement to cut oil production, didn’t fall apart when the realization came that the agreement was complete rubbish.

Instead of following oil much lower when traders began to come to their senses that a production cut was going to be impossible, the market briefly reduced some of its gains, but never made an assault on the flat line.

Instead, it went higher and higher and finished the day nicely.

The bad part is that if the market realizes that its estrangement from oil price is a good thing, it may start to act properly if oil does start a sustained move higher.

At some point oil will have to do that and at some point the market will have to react in kind.

Today wasn’t going to be that day, though.

The problem still ahead becomes whether or not the market will come to that realization too soon and be unable to recoup its losses as it foolishly followed oil lower.

As with many things, we’ll see.

This morning, the futures were again pointing higher, even though there was really nothing very different about the world this morning.

In a rear view mirror the past days do look pretty good, but it’s hard to see whether there is anything up ahead that can convince the market that it’s time to approach the December 2015 recovery highs or maybe even beyond.

What today did bring, maybe thanks to oil’s strength, or maybe to the release of the FOMC minutes which gave some sense that there was a chance that 2016 might just not be a year of a series of interest rate increases, but rather maybe only a single such increase, was another 250+ point gain.

As is usually the case, it’s easy to get taken in when you see some of those strong moves higher as was the case yesterday and last Friday and now again today. However, 2016 has been filled with days like those and they only led to disappointment.

This time may be different, but for now, I’d be happy just to get a trade or two in for the week or maybe just an assignment.

For now, those aren’t overly lofty aspirations, but it would be nice to finally see 2016 get on track.

Maybe today, was that day, as February 2016 is now in the black.

Unbelievable.



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.



Daily Market Update – February 17, 2016

 

 

 

Daily Market Update – February 17, 2016 (7:30 AM)

What was good about yesterday was much more than the fact that the market climbed more than 200 points.

What was also good was that the climb higher was also a broad one, but even that wasn’t what was really good about yesterday.

What was really good was that the market, which may have been buoyed by early reports of an OPEC agreement to cut oil production, didn’t fall apart when the realization came that the agreement was complete rubbish.

Instead of following oil much lower when traders began to come to their senses that a production cut was going to be impossible, the market briefly reduced some of its gains, but never made an assault on the flat line.

Instead, it went higher and higher and finished the day nicely.

The bad part is that if the market realizes that its estrangement from oil price is a good thing, it may start to act properly if oil does start a sustained move higher.

At some point oil will have to do that and at some point the market will have to react in kind.

The problem becomes whether or not the market will come to that realization too soon and be unable to recoup its losses as it foolishly followed oil lower.

As with many things, we’ll see.

This morning, the futures are again pointing higher, even though there is really nothing very different about the world this morning.

In a rear view mirror the past days do look pretty good, but it’s hard to see whether there is anything up ahead that can convince the market that it’s time to approach the December 2015 recovery highs or maybe even beyond.

As is usually the case, it’s easy to get taken in when you see some of those syrong moves higher as was the case yesterday and last Friday. However, 2016 has been filled with days like those and they only led to disappointment.

This time may be different, but for now, I’d be happy just to get a trade or two in for the week or maybe just an assignment.

For now, those aren’t overly lofty aspirations, but it would be nice to finally see 2016 get on track.



.

.



Daily Market Update – February 16, 2016 (Close)

 

 

 

Daily Market Update – February 16, 2016 (Close)

Well, maybe it was a good thing to have had a day off yesterday to honor those dead Presidents who are very unlikely to find themselves replacing a non-President on the $10 bill.

While we were celebrating Presidents Day, the Nikkei and Shanghai indexes were having a real party and today we joined them, despite some party poopers trying to put a damper on things.

The Nikkei rose a wild 7% over the weekend, although that came after having lost a near amount earlier in the week.

Our own futures were up strongly yesterday while awaiting the real thing this morning.

Instead of bursting the bubble of a rally that wanted to exist, this morning also came word that OPEC has agreed on an oil production freeze and that sent those futures higher, as well.

As goes oil, so has gone the US stock market, although there should be a big caveat with that OPEC agreement.

It was done without Iran and Venezuela in attendance and the OPEC agreement calls for all members to abide.

So, it may not be very likely that there will actually be a reduction in production, particularly as Iran has already announced that it would be happy to abide by the resolution for a freeze.

Oh, one thing that came along with that agreement was a further caveat that they would do so once they got back to their own pre-embargo levels of production.

So that increase in the oil futures was overly optimistic if it’s actually predicated on some kind of cooperative spirit coming out of OPEC.

It took the oil futures market a few hours to come to that realization, but this time, the stock market didn’t follow oil lower once reality hit.

What in the world were oil traders thinking?

Last Friday’s stock market close and another strong day today come along at a good time.

While I have some positions set to expire this week, most aren’t going to be candidates for rollover, following an extended downward move by the market that is still far from getting back to normal.

If, however, any of those stocks of mine facing expiration this week do show some marked strength, there may be reason to continue to consider some longer term option sales, as I’ve been doing for a few months, including with some of those positions expiring this week.

Otherwise, my one new position opened last week did come as a surprise, considering how quiet 2016 has been in that regard.

I don’t know if it will be joined by any other new purchases this week, as I would much rather go along for a ride higher with the market and maybe get some opportunity to sell calls on uncovered positions as has been the case the past two weeks.

There isn’t too much economic news this week, although there are a number of Federal Reserve Governors scheduled to give speeches, so there may be some knee jerk reactions to the interpretations given to the words that will be used during the course of the week.

For his part, Neel Kashkari, the newest Federal Reserve Governor, made a splash with his very first speech today suggesting that a big overhaul of Wall Street was likely.

If the past is any indication, those interpretations will go back and forth as one Governor is construed as having said something dovish, while the next was a hawk. From the looks of today’s market it didn’t appear as if anyone paid any attention to the new Minneapolis Federal reserve Governor.

So as has been the case for 2016, I’ll probably sit and watch and hope for an occasional opportunity to do something to make some income this week.

Today got that off to a good start, so I could enjoy sitting a few more days as we await the arrival of the March 2016 option cycle.



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.



Daily Market Update – February 16, 2016

 

 

 

Daily Market Update – February 16, 2016 (7:00 AM)

Well, maybe it was a good thing to have had a day off yesterday to honor those dead Presidents who are very unlikely to find themselves replacing a non-President on the $10 bill.

While we were celebrating Presidents Day, the Nikkei and Shanghai indexes were having a real party.

The Nikkei rose a wild 7% over the weekend, although that came after having lost a near amount earlier in the week.

Our own futures were up strongly yesterday while awaiting the real thing this morning.

Instead of bursting the bubble of a rally that wanted to exist, this morning also came word that OPEC has agreed on an oil production freeze and that sent those futures higher, as well.

AS goes oil, so has gone the US stock market, although there should be a big caveat with that OPEC agreement.

It was done without Iran and Venezuela in attendance and the OPEC agreement calls for all members to abide.

So, it may not be very likely that there will actually be a reduction in production, particularly as Iran has already announced that it would be happy to abide by the resolution for a freeze.

Oh, one thing that came along with that agreement was a further caveat that they would do so once they got back to their own pre-embargo levels of production.

So that increase in the oil futures may be overly optimistic if it’s actually predicated on some kind of cooperative spirit coming out of OPEC.

Last Friday’s close and potentially another strong day today come along at a good time.

While I have some positions set to expire this week, most aren’t going to be candidates for rollover, following an extended downward move by the market.

If, however, any of those do show some marked strength during the week, there may be reason to continue to consider some longer term option sales, as I’ve been doing for a few months, including with some of those positions expiring this week.

Otherwise, my one new position opened last week did come as a surprise, considering how quiet 2016 has been in that regard.

I don’t know if it will be joined by any other new purchases this week, as I would much rather go along for a ride higher with the market and maybe get some opportunity to sell calls on uncovered positions as has been the case the past two weeks.

There isn’t too much economic news this week, although there are a number of Federal reserve Governors scheduled to give speeches, so there may be some knee jerk reactions to the interpretations given to the words that will be used during the course of the week.

If the past is any indication, those interpretations will go back and forth as one Governor is construed as having said something dovish, while the next was a hawk.

So as has been the case for 2016, I’ll probably sit and watch and hope for an occasional opportunity to do something to make some income this week.



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< /p>


Dashboard – February 15 – 19, 2016

 

 

 

 

 

SELECTIONS

MONDAY:   Happy President’s Day

TUESDAY:   Markets look to open the week on the heels of a 7% gain in the Nikkei and strong gains in Shanghai, amid some reports of an OPEC agreement to freeze oil production.

WEDNESDAY:  A reversal in oil, taking it much lower, didn’t do the same for stocks. This morning futures are moderately higher. Although nothing of substance has changed, there may be some good signs in the rear view mirror, even if there are none ahead

THURSDAY:  Following yesterday’s gain, the market is now positive for February 2016. Who would have believed it possible? This morning could add some more!

FRIDAY:. The February 2016 option cycle looks like it may come to a quiet end, just as was the case yesterday, following some tumultuous days of trading. A little bit of stability may be just the thing for a more sustainable move higher.

 

 

 

 

 



 

                                                                                                                                           

Today's TradesCash-o-Meter

 

 

 





 “SNEAK PEEK AT NEXT WEEK” APPEARS ON FRIDAYS

Sneak PeekPie Chart Distribution

 

 

 

 

 

 

 

Weekly Summary

  

Weekend Update – February 14, 2016

It’s not only campaigns that are going negative.

After having watched the latest in political debates on both sides of the aisle, the negative finally coming to the surface should no longer come as a surprise.

Maybe the real surprise should have been just how long the professional politicians on both sides were able to keep that negativity mostly bottled up.

There’s certainly nothing illegal about engaging in a negative political campaign and we have heard time and time again that politicians pursue that unsavory strategy because it works.

It’s also a strategy that’s not unique to the United States. The last unicorn was apparently spotted in Canada and ex-Prime Minister of Great Britain, Tony Blair, was frequently called “Tony Bliar.”

Maybe the fact that such an approach works is why central banks around the world are increasingly giving some thought to going negative.

Negative interest rates are now all the rage after the Bank of Japan had already gone in that direction a few weeks ago.

This week there was at least some suggestion that particular strategy wasn’t entirely off the table in the United States as some are beginning to question just what arrows the Federal Reserve has left in its quiver in the event of an economic slowdown.

Janet Yellen, during her two day mandated session in front of Congressional committees this week said that she didn’t even know whether the Federal Reserve had the legal authority to implement negative interest rates in the United States, but that didn’t stop the worries over what such a scenario would mean with regard to the economy that drove it there.

While oil continued to be the major stock market mover for 2016, this week had some diversification as precious metals began to soar and interest rates continued to plunge.

Who would have predicted this just a couple of months ago when the FOMC saw it fit to begin a slow increase in interest rates?

But just as the week was looking as if it would create a February 2016 that would have us pining for the good old days of January 2016, oil rebounded and Jamie Dimon came to the rescue with a $26 million expression of confidence in the banking system.

Even in the economy of Djibouti, $26 million isn’t that big of a deal, but when Dimon elected to purchase shares in the open market for only the 3rd time in his tenure at JP Morgan Chase, it may have been the first vote of confidence in anything in 2016.

Fortunately, we have a holiday shortened trading week ahead to help us digest the gains seen on Friday that left the S&P 500 only 0.9% lower on the week.

While we’ve had a recent run of strong week ending trading sessions, there hasn’t been much in the way of staying power. Maybe a long weekend will help.

What the day off will also do is to give us a chance to actually try to understand the significance of negative interest rates even as the market seemed concerned just a couple of days earlier that a March 2016 interest rate hike wasn’t off the table.

Last week’s reactions by the market to interest rates was akin to being both afraid of the dark and the light as the market understandably went back and forth in spasms of fear and relief.

Going negative usually reflects some sort of fear and a concern that more conventional approaches aren’t going to deliver the hoped for results.

It may also reflect some desperation as there comes a perception that there is nothing really to lose.

I can understand a Presidential candidate using a profanity during a public appearance and I can even understand one Presidential candidate referring to another as “a jerk.”

That kind of negativity I get, but I’m having a really hard time understanding the concept of negative interest rates.

While I understand relative negative rates during periods of high inflation, the very idea that paying to keep your money in the bank would become similar to paying someone to store your cache of gold bars is confusing to me.

Why would you do that? Why would I want to pay money to a bank just so they could make even more money by putting my money to use?

I know that it’s not quite that simple, but I would be happy if I could get a bank to lend money to me at a negative interest rate, but somehow I don’t envision the APR on credit cards reflecting that kind of environment anytime soon.

Now, if you really wanted to spur consumer spending, that may be just the way to do it. Why not apply a monthly negative interest rate to a credit card balance and the longer you keep the balance open the more likely it will disappear as the negative interest accumulates and works down your debt.

The money you don’t spend on your monthly payments could easily then be used to spur even more consumer spending.

If that isn’t a win – win, then I just don’t know what would be.

I suppose I understand the theory behind how negative interest rates may prompt banks, such as Dimon’s JP Morgan Chase (JPM) to put deposits to work by increasing their lending activity, but I wonder how the lending risk is managed as thoughts of recession are coming to the surface.

As I recall, it wasn’t that long ago that poor management of lending risk put us all at risk.

The coming week will have the release of some FOMC meeting minutes and we may get to see whether there was even the slightest consideration given to going negative.

It’s not too likely that will have come up, but as we may now be witnessing, it is possible that the FOMC’s crystal ball is no better than those owned by the least informed of us.

What was clear, however, as the market began to sink back to a “bad news is good news” kind of mentality is that negative rates weren’t the kind of bad news that anyone could embrace.

As usual, the week’s potential stock selections are classified as being in the Traditional, Double Dip Dividend, Momentum or “PEE” categories.

Among many stocks that fared well on Friday as the market found a reason to mount some rebound from the onslaught earlier in the week was Best Buy (BBY).

Best Buy’s performance was especially impressive as it opened the d
ay 6% lower following a downgrade, they ended the day more than 1% higher.

I generally don’t want to add positions after a sharp climb higher, but as Best Buy is set to report earnings during the first week of the March 2016 option cycle, I am willing to consider the sale of puts in the week prior to those earnings, as the recent volatility has its rewards reflected in the available premiums.

If faced with assignment the premiums are enhanced due to earnings and there may be good opportunity to roll the short put position over, although if doing so, some thought has to be given to the upcoming ex-dividend date likely sometime before the beginning of the April 2016 option cycle.

If faced with assignment of shares just prior to that ex-dividend date, I’d be inclined to accept that assignment in order to have both the chance to sell calls and to possibly collect the dividend, as well.

While its options are less liquid than those of Best Buy, I would consider doing the same with Weyerhauser (WY), although earnings don’t have to be contended with until the May 2016 option cycle.

With an upcoming merger expected to close sometime in the first or second quarters of 2016, Weyerhauser has badly trailed the S&P 500 since the announcement was made 3 months ago.

That is despite the belief by many that the proposed merger with Plum Creek Timber (PCL) represents a good strategic fit and offers immediate financial synergy.

At this point, I just like the low price, the relatively high option premium and the potential to take ownership of shares in order to also try and collect the generous dividend just a few weeks away.

Due to the lesser liquidity of the options, there can also be some consideration to simply doing a buy/write and perhaps selecting an out of the money strike price with an expiration after the ex-dividend date.

Sinclair Broadcasting (SBGI) is another that hasn’t fared terribly well in the past few months and has also under-performed the S&P 500 of late.

It is a stock that I often purchase right before an ex-dividend date, as long as its price is reasonable by its historical standards.

For me, that reasonable price is around $29. It failed to break through resistance at $33 and has fallen about 18% in February, bringing the price to where I like to consider entry.

Share price hasn’t been helped by a recent downgrade on earnings warnings and the announced buyout of The Tennis Channel.

In the meantime, Sinclair Broadcasting remains the most potent play in local television in the nation and is increasingly diversifying its assets.

With earnings and an ex-dividend date both due early in the March 2016 option cycle and with only monthly options available, this is a position that I would consider selling longer term and out of the money contracts upon, such as the $30 June 2016 contract.

Sinclair Broadcasting’s stock price history suggests that it tends not to stay depressed for more than a couple of months after having approached a near term low. Hopefully, it’s current level is that near term low, but by using a June 2016 option expiration there may be sufficient time to ride out any further decline.

Following an even stronger gain than the S&P 500’s 1.9% advance to close the week, General Electric (GE) is now almost even with the S&P 500 for 2016.

That’s not a great selling point.

General Electric seems to have just successfully tested an important support level, but that risk does remain, particularly if the overall market takes another leg down.

In that case, there may be some significant risk, as there could be another 15% downside in an effort to find some support.

Thus far, the moves in 2016 have been fairly violent, both lower and higher, with an overall net downward bias. There isn’t too much reason to believe that pattern will soon reverse itself and for that reason option premiums, such as for General Electric are higher than they have been for quite some time.

While numerous stocks can make a case that their current prices represent an attractive entry level, General Electric can certainly pick up the pieces even if there is further downside.

The worst case scenario in the event of further price declines is that the General Electric position becomes a longer term one while you collect a nice dividend and maybe some additional option premiums along the way.

T-Mobile (TMUS) reports earnings this week.

I’m struck by two things as that event approaches.

The first is what seems to be an even increasing number of T-Mobile television ads and the increasing financial burden that must be accruing as it continues to seek and woo subscribers away from its competitors.

The second comes from the option market.

I generally look at the “implied move” predicted by the option market when a company is about to report earnings. For most companies, the option premiums near the strike price are very similar for both puts and calls, particularly if the current price is very close to the strike price. However, in the case of T-Mobile, there is considerable bias on the call side.

The implied move is about 8.1%, but about 5.4% of that is from the very high call premium. The clear message is that the option market expects T-Mobile to move higher next week. It’s unusual to see that much of a declaration of faith as is being demonstrated at the moment.

When I see something like that, the oppositional side of me even thinks about buying puts if I didn’t mind the almost all or none proposition involved with that kind of a trade.

However, rational though pushes that oppositional piece of me to the side and while I generally like the idea of selling puts ahead of earnings, in this case, there may be good reason to consider the purchase of shares and the sale of calls, perhaps even deep in the money calls, depending upon the balance of risk and reward that one can tolerate.

Finally, if you’ve been following the news, you know that it wasn’t a particularly good week to have been a cruise line or perhaps to have been a cruise line passenger. While there may be lots of great things about being a passenger, it seems that we hear more and more about how either a virus or the rough seas will take its toll.

With an upcoming ex-dividend date this week and a severe price descent, Carnival (CCL) is finally looking attractive to me again after nearly 18 months of not having owned shares.

With earnings early in the April 2016 cycle th
ere are a number of different approaches in the coming week to the shares.

One approach may simply be the purchase of shares and the concomitant sale of in the money February 2016 call options, which are the equivalent of a weekly option, as expiration is this Friday. In such as case, whether using the at the money or in the money strike, the intent is to at least generate option premium and perhaps the dividend, as well, while having the position exercised.

Alternatively, a larger premium can be exacted by selling a March 2016 out of the money option and more predictably ensuring the capture of the premium. With earnings coming early in the April 2016 option cycle, the more daring investor can also consider the use of even longer dated out of the money options in the hopes of getting an more substantive share gains in addition to the dividend and an earnings enhanced option premium.

I’m more inclined to go for the full journey on this one and extend my stay even if there may be some bumpiness ahead. 

Traditional Stocks: General Electric, Sinclair Broadcasting, Weyerhauser

Momentum Stocks: Best Buy

Double-Dip Dividend: Carnival (2/17 $0.30)

Premiums Enhanced by Earnings: T-Mobile (2/17 AM)

Remember, these are just guidelines for the coming week. The above selections may become actionable – most often coupling a share purchase with call option sales or the sale of covered put contracts – in adjustment to and consideration of market movements. The overriding objective is to create a healthy income stream for the week, with reduction of trading risk.

Week in Review – February 8 – 12, 2016

 

Option to Profit

Week in Review

 

FEBRUARY 8 – 12, 2016

 

NEW POSITIONS/STO NEW STO ROLLOVERS CALLS ASSIGNED/PUTS EXPIRED CALLS EXPIRED/PUTS ASSIGNED CLOSED EX-DIVIDEND
1  /  1 4 0 0   /   0 0   /   0 0 4

 

Weekly Up to Date Performance

February 8 – 12,  2016


Alright, last week it was all about oil.

How about this week? Oil, oil, oil and maybe a little bit of interest rates, interest rates, interest rates and negative interest rates, too.

Unbelievably, I actually opened a new position this week.

That new position was 3.4% higher on the week while the adjusted S&P 500 was 0.6% higher and the unadjusted S&P 500 was 0.9% lower.

There were still no assignments for the year as the market continues the back and forth that mostly ends up taking the numbers lower and lower.

But, at least existing positions fared better than the S&P 500 for the week, no doubt with both helped out by Friday’s strong close.

This turned out to be a good week, thanks to Friday’s close.

But it was actually more than that, as Friday’s close just added paper gains.

It was a rare good week because there was actually a new position opened and a number of new call sales were made. On top of that there were a few ex-dividend positions.

Ultimately, i don’t care how it happens, but I just like to see income generated and this week was better than anything else in 2016 to this point.

That isn’t saying much as the market still closed lower on the week and it would have been far, far worse had it not been for another Friday coming to the rescue.

As with other of these strong closes to the week, it’s hard to get overly excited about what may be in store for the following week.

I did spend a little bit of money this week, but I’m under no pretenses that next week will necessarily be more inviting.

What next week does offer is some thought of rollovers after having gone 2 weeks with no expiring positions to even consider.

While there aren’t many for next week either, especially by month closing standards, at least there’s some possibility of rollovers or assignment.

That would be nice, as 2016 hasn’t had much to cheer about and we could all use some good cheer at the moment.

Here’s to next week.

.

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

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



New Positions Opened:  none

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 cyclenone

New STO:  GDX ($22.50 6/17/2016), GDX ($25 9/16/2016), NEM ($35 9/16/2016)

Put contracts expired: none

Put contracts rolled over: none

Long term call contracts sold:  none

Calls Assigned: none

Calls Expired:  none

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   BP (2/10 $0.595), IP (2/11 $0.44), MRO (2/12 $0.05), MAT (2/12 $0.38)

Ex-dividend Positions Next Week:  AZN (2/17 $0.30)

For the coming week the existing positions have lots that still require the sale of contracts:   AGQ, ANF, AZN, BBBY, BBY, CHK, CLF, COH, CSCO,  CY, DOW, FAST, FCX, GDX, GM, GPS, HAL, HFC, HPQ, INTC, IP, JCP, JOY, KMI, KSS, LVS, MCPIQ, MOS, NEM, RIG, WFM, WLTGQ, 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.



Daily Market Update – February 12, 2016

 

 

 

Daily Market Update – February 12, 2016 (7:00 AM)

The Week in Review will be posted by 10 PM and the Weekend Update will be posted by Noon on Sunday.

The following trade outcomes are possible today:

Assignments:  none

Rollovers:  none

Expirations:   none

The following were ex-dividend this week:  BP (2/10 $0.60), IP (2/10 $0.44), MAT (2/12 $0.38), MRO (2/12 $0.05)

The following will be ex-dividend next week: AZN (2/17 $0.30)

Trades, if any, will be attempted to be made prior to 3:30 PM EST



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