Going to Cash

Well, for a minute, anyway.
I did close 2 positions today, one for a substantial loss.
That was Joy Global, which for the longest time has been ready to close on a deal to be bought out.
That has really been dead money, but I kept thinking that maybe someone or somebody else would come along and sweeten the offer, especially as the economy was eventually going to improve in China.
But suddenly, there has been a lot of selling of those shares by institutional holders, so I gave up and took the cash.
The same for that EMC spin-off after the buyout from Dell.
That one, at least had a decent profit. Continue reading “Going to Cash”

Hoping to Keep a Strategy Alive and Imbued with Belief

There are so many sayings and expressions around the concept of hope.
The most recent, and the one that was identified with a successful Presidential campaign, was “Hope you can believe in.”
“Keep hope alive,” was a rallying point of Jesse Jackson and chanted  at some many venues.
“Hope is not a strategy,” is something that’s frequently said when it comes to investments.
For me, I was just hoping to get more trades done today.
I did keep the streak for 2017 alive by making a trade today, but there were so many that I wanted to see made today.
Why that matters is that my 2017 strategy has, thus far, been more of a “hit and run” one.
I want to sell as many calls as I can, especially on non-performing holdings, at whatever strike I can in order to generate some meaningful income revenue.
This week, following the end of the January 2017 option cycle, I have lots of those non-performing positions. Continue reading “Hoping to Keep a Strategy Alive and Imbued with Belief”

What a Great Week


TheAcsMan, Eddy ElfenbeinWhat a great week.

As my wife likes to continually remind me, “it’s not always about you,” but then again, I don’t really see her TheAcsWoman site anywhere, now do I?
But this was a great week, even as it isn’t always about the stock market.
The stock market basically did nothing on the week, but who cares?
Ordinarily, my answer to that rhetorical question would be “I do,” but this week was different.
It was different because, despite political differences and still some astonishment as I watched the Inauguration, still wondering how both political parties could have failed so badly as to get us to this point, it became clear that what hasn’t failed is our nation’s ability to move forward.
That explains why I attended one of the Inaugural Balls last night, although I did try to keep a low profile, due to my well-known political ties on the other side of the aisle.
I made the mistake, though, of being in the same place and the same time as the famed Eddy Elfenbein, of Crossing Wall Street and, so, it was hard to escape the cameras.
But the point is that the process is one that reflects greatness, as does peaceful protest.
So I’m excited about what next week brings, which now brings me back to the stock market and how the stock market affects me, because it is all about me. Continue reading “What a Great Week”

Small Victories

smallvictoriesIt may be too soon to call this a victory, but for the moment, I’ll take whatever I can.
In this case, the victory was waking up this morning an still having Monday’s share purchase of Whole Foods in the account.
Whole Foods was ex-dividend today for $0.14
But shares closed yesterday at $30.73, which meant that the $30.50 strikes could have been assigned early.
But it’s all about the math and the probability of what could still happen over the course of the days remaining on the option contract.
In this case, following the $30.73 close and then deducting that $0.14 dividend, Whole Food shares would then start being available to trade at $30.59
For the option holder, the question was would it be worth actually paying the $30.50 for shares in order to grab the $0.14 dividend or hoping that maybe there was still some juice in that option contract.
Of course, if the option holder decided to grab the dividend, not only would he have to pay the $30.50 for shares, but he would also take the risk of shares declining in value at the open. Continue reading “Small Victories”

Will Common Sense Make a Comeback?


I didn’t vote for Donald Trump, but I really can’t wait until he steps into the Oval Office.

It’s not that I suddenly find myself agreeing with whatever Donald Trump believes, although it is hard to tell what he really believes, it’s just that I think that he will bring out the best in people.
He will do that at the same time that he has shown that he can bring out the worst in people.
You can’t disagree with Hillary Clinton’s reference to “deplorables,” although you would really have to question both her estimate of how many of Trump’s supporters really did fit into that category, as well as simply questioning her judgment in making the comment, itself.
By the same token, there are clearly “deplorables” on the other side of the political spectrum and in that group I might include those who have a hard time accepting the fact that Donald Trump will be our next President.
My father used to always say that “money brings out the best in people and the worst in people.”
For years, I thought that his lack of command of English as a language caused him to use the conjunction “and” when he really meant “or.”
It was only a few years ago that I realized that he said exactly what he meant.
Money can bring out both the best and the worst in someone and I think that Donald Trump will do the same with our elected officials.
Some, unfortunately, will feel even more emboldened to act in a ridiculous manner, while others are going to realize that the only way to move the nation forward is to come to some reconciliation across the aisle.
Remember when there were actually moderates in both parties who could stand one another professionally and personally?
Donald Trump may be the enzyme that brings them back together again.
Continue reading “Will Common Sense Make a Comeback?”

Daily Market Update – December 30, 2016

 

 

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


The Week in Review will be posted by 10 PM and for the first time in years, there will be no Weekend Update..

The following trade outcomes are possible today:

Assignments: none

Rollovers: UA

Expirations:   M

The following were ex-dividend this week:    CY (12/27 $0.11), JOY (12/28 $0.01), GPS (12/30 $0.23)

The following are ex-dividend next week:  BMY (1/4 $0.39)


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

HAPPY NEW YEAR TO ALL AND BEST WISHES FOR A WONDERFUL 2017

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Daily Market Update – December 29, 2016 (Close)

 

 

Daily Market Update –  December 29, 2016 (Close)

Yesterday was a surprise. Today, not so much.

At a time when the DJIA nears 20,000, it shouldn’t be too surprising when we see triple digit moves, anymore. Maybe what should be more surprising is when there is very little movement, just like today and so many recent days.

What was really surprising was 30 years ago when the DJIA was standing at about 2500 and we were seeing lots and lots of triple digit moves.

Now, 100 points is nothing.

But yesterday was only the second time since the election that we had a triple digit move lower, not as if there have been many of those higher, either.

There really was no reason, except maybe related to some end of the year strategies by people who thought they would out-smart everyone else.

This morning, it seemed back to normal, even as that might not really be very normal.

I’m glad that I had the chance to do a couple of rollovers yesterday, leaving only a single position still in contention for a rollover this week.

What really surprised me today was that while I had the money to spend, I actually spent some, as looking at the final 2 days of trading in 2016 ass some sort o opportunity that would never return.

For tomorrow, I think I will just watch the year come to its happy end and any trades that may come along the way just add to the happiness of 2016.

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Daily Market Update – December 29, 2016

 

 

Daily Market Update –  December 29, 2016 (7:30 AM)


Yesterday was a surprise.

At a time when the DJIA nears 20,000, it shouldn’t be too surprising when we see triple digit moves, anymore.

What was surprising was 30 years ago when the DJIA was standing at about 2500 and we were seeing lots and lots of triple digit moves.

Now, 100 points is nothing.

But yesterday was only the second time since the election that we had a triple digit move lower, not as if there have been many of those higher, either.

There really was no reason, except maybe related to some end of the year strategies by people who thought they would out-smart everyone else.

This morning, it seems back to normal.

I’m glad that I had the chance to do a couple of rollovers yesterday, leaving only a single position still in contention for a rollover this week.

I have the money to spend, as we look at the final 2 days of trading, but no real reason to do so.

I think I will just watch the year come to its happy end and any trades that may come along the way just add to the happiness of 2016.

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Daily Market Update – December 28, 2016

 

 

Daily Market Update –  December 28, 2016 (7:30 AM)


It looks as if it’s going to be another quiet day today as we really get ready to close out the year.

It really has been a tale of different markets.

We had the January correction, followed by Jamie Dimon’s rescue of the market.

Then we had 2 horribly wronged predictions about vote results and the aftermaths of each.

Brexit and the US Presidential elections.

Could pollsters and market predictors have gotten each one more wrong?

No matter, 2-016 has been a good one, especially if still holding onto the big losers from 2015.

I still have lots of cash on hand following yesterday’s single new position opened.

I also continued making another of those side DOH trades that have kept me busy for much of the past month and I definitely hope to do more of those and with some regularity in 2017.

I will definitely have more time to devote to the maintenance of those trades and definitely appreciate the way the relatively some premiums do add up, even as they may exact a toll on your nerves.

Still, what’s the worst that happens?

I expect to be doing little today other than looking for rollover opportunities and counting the days down until the accounting can begin anew for 2017.


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Daily Market Update – December 27, 2016 (Close)

 
 
Daily Market Update –  December 27, 2016 (Close)
 
The final week of 2016.
For lots of reasons, I can’t wait, but will still be sad to see it go, although it won’t be sad if 2017 was destined to be as completely boring as it was today.
It was likely, and still is, to be a pretty quiet week on the planned news front, at least as far as economic reports go and earnings are done, at least for another few weeks.
That leaves us with a market where traders may be rolling the dice.
Will there be strategic tax loss selling? Will there be opportunity to take advantage of expected light volume?
Will anything unexpected happen anywhere just from an errant Tweet or fake news story?
Amazing that those latter two are even a thing.
So, regardless of what this week’s trades may or may not bring, it was by far my least busy trading year since I’ve started doing what I’m about to give up doing.
It’s also the slowest trading year since I started trading, with temerity, on my own.
I hope that changes next year, although I hope that the end result and the bottom line continue along the same path.
With still way too much in commodities, I think that 2017 will be another good year, regardless of what happens with the overall market.
I plan on trying to leverage those long dormant positions with every possible opportunity in 2017 and trading more and more, even if not opening as many new positions.
I also plan to going longer term, as I’m getting a little older and not as keen about keeping an eye on news and events day in and day out.
Although I never get bored, all of the above is subject to change if the slightest bit of boredom creeps in.
I do know what I like, but I’m not certain of how I might respond to boredom, so it may be best to be prepared to go back to what I know I like.
This week, I have cash.
I do like that.
I also have some inclination to spend cash.
I like that, too and so, now I actually have less cash.
I have some ex-dividend positions.
Like.
And a couple of expiring positions.
Like that, too.
So, even as not expecting much on the week, I;m approaching it with a smile and am ready to go, even of only for 4 days.
Hopefully, whatever few days are left will usher in a nice and welcoming 2017 for all of us.
 
 
 
 
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