Daily Market Update – July 22, 2016


Option to Profit

Week in Review


July 18 – 22, 2016


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Weekly Up to Date Performance

July 18 – 22, 2016

Records, records and more records.

That’s how last week ended and so did this week.

In the post-Brexit world this was just another in a series of good weeks.

Once again, there was only one position opened this week and it was also once again a familiar one.

That’s also exactly what I said last week, but that’s actually the ideal way a covered option strategy would work and it has been a long time since really being able to serially execute trades in any positions, so it does feel more rewarding than has been the case of late.

That position ended the week 0.6% higher, but could do no better than both the adjusted and unadjusted S&P 500.

The S&P 500, itself, rose another 0.6%.

Maybe not as impressive as previous week, but still enough to make people happy, especially the people that matter most.


Existing positions bested the S&P 500 by an additional 0.3%, in what was really a good week.

With  no  new closed positions on the week closed positions in 2016 are still 6.8% higher, while the comparable performance for the S&P 500 during the same holding periods has been 1.9% higher. That represents a 267% difference in return on closed positions. As with every week in 2016, I’d be much more impressed if there were far more of those closed positions to point toward. With such few closed positions for the year, the differential could just as easily have been in the other direction and of a similar magnitude, yet also signifying little.

This was another good week in what continues to be a good year, despite very little additional trading this week.

It’s always nice to see asset values rise some more, but I still prefer to have some activity accompany the gains.

Once again, this week had only 1 new position opened and only two rollovers. Unfortunately, despite having some feelers out there, I couldn’t find any buyers for uncovered positions to supplement the scant dividend income for the week..

With only a single ex-dividend positions this week, I would have liked to have had more income generating opportunities, but all in all, I was pleased.

With only one new purchase this week and still having cash from assignments the previous week, I do have some discretionary cash to put to work.

However, we’re still at all time highs and I’m not eager to put too much at risk in the chase.

With 2 positions expiring next week and 3 ex-dividend positions, there may already be sufficient opportunity for income generation to tread lightly, but I’ll still keep an open mind as the FOMC sets the stage for the coming week.

While that does take place on Wednesday, the real event to get some notice may turn out to be Friday’s GDP report.

A strong GDP may give some reason to believe that the FOMC will make an interest rate increase announcement as early as August, even though there is no meeting scheduled and no press conference.

That would catch some off guard and might be construed as more than just mildly inflationary.

But that’s attempting to be logical and logic hasn’t had much of a home for a year or more.

Lots more.

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:  MRO (puts)

Puts Closed in order to take profits:  none

Calls Rolled over, taking profits, into the next weekly cycle:   MRO

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: none

Put contracts expired: none

Put contracts rolled over: MRO

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   FAST (7/22 $0.30)

Ex-dividend Positions Next Week: F (7/27 $0.15), MS (7/28 $0.20), KMI (7/29 $0.125)

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.