Week in Review – February 17 – 21, 2014

 

Option to Profit Week in Review
February 17 – 21, 2014
 
NEW POSITIONS/STO NEW STO ROLLOVERS CALLS ASSIGNED/PUTS EXPIRED CALLS EXPIRED/PUTS ASSIGNED CLOSED
5 / 5 4  9 6 / 0 5  / 0 0

    

Weekly Up to Date Performance

February 17 – 21, 2014

New purchases beat the time adjusted S&P 500 this week by 1.8% and also surpassed the unadjusted index by 1.7% during a week that had no real news or no meaningful events.

The market showed an adjusted loss for the week of 0.1% and unadjusted loss of 0.2% for the week, while new positions gained  1.6%.

For positions positions closed in 2014, performance exceeded that of the S&P 500 by 1.3%. They were up 3.2% out-performing the market by 70.5%.

It was a busier trading week than I had expected and that’s usually a good thing. In all, there were 18 positions traded, which is something that we haven’t seen for some time.

While there was little to move markets this week, they did move, but the alternating currents left it going nowhere. As you probably know, those tend to be the best weeks. When the market goes nowhere you’re much more likely to get to your own destination.

While I have no complaints about 2013, I would much rather see lots of aimless wandering going about. This was certainly a week of aimless wandering.

While 5 new positions were opened this week, there was an opportunity to gain additional cover on some positions and rollover a number of others. In addition to creating  the income streams that may be a primary goal for some and a secondary goal for others, the net number of outstanding positions was decreased, which has been a goal of mine for the past two months.

Best of all there were assignments to help replenish cash reserves bringing them to a level where it’s possible to establish new positions in the coming week as the opportunities arise, as well as maintaining enough in reserve to capitalize on a rainy day.

As an added bonus there were lots of dividends this week and a quick review of my holdings shows that there’s about an additional 0.3% ROI in dividends receivable over the coming couple of weeks. Unfortunately, the coming week doesn’t appear to have quite as many dividend opportunities, but that day will come again.

With the opportunity to restock cash reserves and no real sense of urgency from any direction, regardless of an overall listless appearing economy, I continue to have some short term optimism as the new monthly option cycle begins on Monday.

As long as am whining about the lack of new dividend plays in the coming week, I’ll also add to that bemoaning the sudden return of volatility to its already low levels. A week or two taste of the good times had me wanting more, but the market has ordained otherwise.

That means the likelihood of less reliance on longer term contracts as there is very little reward for going out in time, except for dividend paying stocks or as part of a strategy to cushion a position against potential earnings related shocks.

As much as I do want to be staggered in terms of contract times the lower premiums make that difficult to do right now.

While next week may not have much in the way of dividends and while I am currently focusing on less volatile positions, for the more reckless out there there may be some good earnings related trades. Those tend to be in the higher volatility names and the earnings event can make them even more so, so it is definitely an acquired taste.

However, some of the best recurring opportunities can come with these kind of trades, such as when puts are assigned, as long as they are done so while the shares trade in the neighborhood of the strike price used.

But even without those more adventurous trades there does appear to be some opportunities in more sedate names for next week.

With cash in hand to start the week and no obstacles obviously in the way I’m looking forward to picking up some replacement positions. However, while I normally prefer a weak opening to the trading week in order to secure some cheaper purchases prices, I wouldn’t mind the market continuing with its rebound from the lows of two weeks ago, as I would like to continue having the opportunity to find new cover for some positions, even if it means resorting to “DOH Trades.”

 

Then again, unlike the white powder on the Benjamins you used to pay for that  fedora , no one will ask you whether you’re paying with money derived from those DOH Trades.

 

 

 

 

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:  GE, LB, LO, MOS, RIG

Puts Closed in order to take profits:  none

Calls Rolled over, taking profits, into the next weekly cycleAPC, CSCO, LOW, MA, MSFT, YUM

Calls Rolled over, taking profits, into extended weekly cycle

CallsRolled over, taking profits, into the monthly cycle:

Calls Rolled Over, taking profits, into a future monthly cycle:  ANF, LB, RIG

Calls Rolled Up, taking net profits into same cyclenone

New STO:  AIG, CHK, HFC, LULU

Put contracts sold and still open: none

Put contracts expired: none

Put contract rolled over: none

Long term call contracts sold:  none

Calls Assigned:  CHK, CPB, FAST, GPS, GPS, MSFT, VZ

Calls Expired: CLF, FAST, FCX, INTC, WY

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:  CLF (2/19 $0.15), GE (2/20 $0.22), LB (2/19 $0.34), MSFT (2/18 $0.28), RIG (2/19 $0.56), WLT (2/18 $0.01)

 

 

.

 

 

For the coming week the existing positions have lots that still require the sale of contracts:   AGQ, C, CLF, COP,DRI, FCX ,INTC, LB, JCP, MCP, MOS,  MRO, NEM, PBR, PM, RIG, TGT, WFM, WLT (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.

Click here for reuse options!
Copyright 2014 TheAcsMan

Week in Review – February 21 – 24, 2014

 

Option to Profit Week in Review
February 17 – 21, 2014
 
NEW POSITIONS/STO NEW STO ROLLOVERS CALLS ASSIGNED/PUTS EXPIRED CALLS EXPIRED/PUTS ASSIGNED CLOSED
5 / 5 4  9 6 / 0 5  / 0 0

    

Weekly Up to Date Performance

February 17 – 21, 2014

New purchases beat the time adjusted S&P 500 this week by 1.8% and also surpassed the unadjusted index by 1.7% during a week that had no real news or no meaningful events.

The market showed an adjusted loss for the week of 0.1% and unadjusted loss of 0.2% for the week, while new positions gained  1.6%.

For positions positions closed in 2014, performance exceeded that of the S&P 500 by 1.3%. They were up 3.2% out-performing the market by 70.5%.

It was a busier trading week than I had expected and that’s usually a good thing. In all, there were 18 positions traded, which is something that we haven’t seen for some time.

While there was little to move markets this week, they did move, but the alternating currents left it going nowhere. As you probably know, those tend to be the best weeks. When the market goes nowhere you’re much more likely to get to your own destination.

While I have no complaints about 2013, I would much rather see lots of aimless wandering going about. This was certainly a week of aimless wandering.

While 5 new positions were opened this week, there was an opportunity to gain additional cover on some positions and rollover a number of others. In addition to creating  the income streams that may be a primary goal for some and a secondary goal for others, the net number of outstanding positions was decreased, which has been a goal of mine for the past two months.

Best of all there were assignments to help replenish cash reserves bringing them to a level where it’s possible to establish new positions in the coming week as the opportunities arise, as well as maintaining enough in reserve to capitalize on a rainy day.

As an added bonus there were lots of dividends this week and a quick review of my holdings shows that there’s about an additional 0.3% ROI in dividends receivable over the coming couple of weeks. Unfortunately, the coming week doesn’t appear to have quite as many dividend opportunities, but that day will come again.

With the opportunity to restock cash reserves and no real sense of urgency from any direction, regardless of an overall listless appearing economy, I continue to have some short term optimism as the new monthly option cycle begins on Monday.

As long as am whining about the lack of new dividend plays in the coming week, I’ll also add to that bemoaning the sudden return of volatility to its already low levels. A week or two taste of the good times had me wanting more, but the market has ordained otherwise.

That means the likelihood of less reliance on longer term contracts as there is very little reward for going out in time, except for dividend paying stocks or as part of a strategy to cushion a position against potential earnings related shocks.

As much as I do want to be staggered in terms of contract times the lower premiums make that difficult to do right now.

While next week may not have much in the way of dividends and while I am currently focusing on less volatile positions, for the more reckless out there there may be some good earnings related trades. Those tend to be in the higher volatility names and the earnings event can make them even more so, so it is definitely an acquired taste.

However, some of the best recurring opportunities can come with these kind of trades, such as when puts are assigned, as long as they are done so while the shares trade in the neighborhood of the strike price used.

But even without those more adventurous trades there does appear to be some opportunities in more sedate names for next week.

With cash in hand to start the week and no obstacles obviously in the way I’m looking forward to picking up some replacement positions. However, while I normally prefer a weak opening to the trading week in order to secure some cheaper purchases prices, I wouldn’t mind the market continuing with its rebound from the lows of two weeks ago, as I would like to continue having the opportunity to find new cover for some positions, even if it means resorting to “DOH Trades.”

 

Then again, unlike the white powder on the Benjamins you used to pay for that  fedora , no one will ask you whether you’re paying with money derived from those DOH Trades.

 

 

 

 

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:  GE, LB, LO, MOS, RIG

Puts Closed in order to take profits:  none

Calls Rolled over, taking profits, into the next weekly cycleAPC, CSCO, LOW, MA, MSFT, YUM

Calls Rolled over, taking profits, into extended weekly cycle

CallsRolled over, taking profits, into the monthly cycle:

Calls Rolled Over, taking profits, into a future monthly cycle:  ANF, LB, RIG

Calls Rolled Up, taking net profits into same cyclenone

New STO:  AIG, CHK, HFC, LULU

Put contracts sold and still open: none

Put contracts expired: none

Put contract rolled over: none

Long term call contracts sold:  none

Calls Assigned:  CHK, CPB, FAST, GPS, GPS, MSFT, VZ

Calls Expired: CLF, FAST, FCX, INTC, WY

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:  CLF (2/19 $0.15), GE (2/20 $0.22), LB (2/19 $0.34), MSFT (2/18 $0.28), RIG (2/19 $0.56), WLT (2/18 $0.01)

 

 

.

 

 

For the coming week the existing positions have lots that still require the sale of contracts:   AGQ, C, CLF, COP,DRI, FCX ,INTC, LB, JCP, MCP, MOS,  MRO, NEM, PBR, PM, RIG, TGT, WFM, WLT (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.

Click here for reuse options!
Copyright 2014 TheAcsMan

Daily Market Update – February 21, 2014

 

  

 

Daily Market Update – February 21, 2014 (9:00 AM)

The Week in Review will be posited by 6 PM and the Weekend Update will be posted by noon on Sunday.

 

The possible trades for today include:

Assignment:  CPB, CHK, FAST ($45), GPS, VZ

RolloverINTC, LOW, MA, YUM

Expiration: CLF, FAST ($47), FCX, WY

 

Trades, if any, will be attempted to be made by 3:30 PM (EST)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

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Copyright 2014 TheAcsMan

Daily Market Update – February 20, 2014 (Close)

 

  

 

Daily Market Update – February 20, 2014 (Close)

When Wal-Mart can’t deliver good earnings and then gives some dour guidance, what chance does anyone else have?

If you believe that retail is a reflection of the health of the consumer then it’s important to see that sector performing well, even if their share prices don’t follow.

Further, there are those that use the various retailers’ performances as reflection of various segments of society and how those segments are sharing in the economy.

When Wal-Mart isn’t doing well, the possibilities are that people are moving to a different, perhaps more upscale retailer such as Target or to a lower level retailer, such as Family Dollar Store.

Assuming that you weren’t an investor in any of those companies, which would you rather see happening? Which do you think is happening?

With some slight increase in jobless claims and a couple of months of disappointing employment numbers, given the already weakened state of retail, Wal-Mart’s earnings and outlook aren’t very encouraging for an economy that still isn’t setting the world on fire.

On the other hand, Wal-Mart has made a habit lately of being off on their own guidance and under-performing. Perhaps a part of the story is just their own inability to forecast in addition to what is going on in the marketplace. During the past few quarters the market has had very muted response to Wal-Mart’s own earnings and guidance issues, other than a very brief and quick drop when Wal-Mart released some rising inventory data that was interpreted as a very bad sign for the economy, until a Wal-Mart spokesperson clarified the limited meaning of those numbers.

Speaking of fires, the market is more likely to place emphasis on disappointments from the world’s largest retailer than it is to rejoice over Tesla’s numbers or even make illusions of a bubble in the making as Facebook pays $16 B for a company that most people have never heard about, despite nearly 500 million users.

While Tesla and Facebook may have both been profitable investments they’re not going to have much trickle down elsewhere and they certainly aren’t going to sustain or charge an economy.

The remainder of this week is not likely to have any real leadership or theme so there will likely be lots of discussion about the three big stories of the day; Wal-Mart, Tesla and Facebook.

Unless I have direct ownership or am thinking of ownership, I tend to block out those kind of stories, as their relevance is extremely limited. If the market isn’t overly concerned about Wal-Mart, why should I be?

After yesterday’s turnaround and nearly triple digit loss and this morning’s early turnaround in the pre-open market from negative to positive, there’s at least some hope that the week to end the monthly cycle may finish on an up note and help to achieve an acceptable assortment or assignments, rollovers and expirations.

As I look out the window and watch the snow quickly melting as we enjoyed a Sochi-like kind of day yesterday and again today, it reminds me that the excuse of weather will soon run its course.

While it’s true that there may be some pent up buying ready to explode once people can find their way to the stores, as many analysts have been saying, those seasonal purchases that were delayed will remain that way for a year. While that should impact on the next quarter of earnings the stock market game is very much built on expectations and guidance.

Our expectations going forward are going to be low as we’re still freshly reminded of the difficult winter. The reality, even if only matching our lowered expectations may be seen as a positive.

For the moment that encourages me as the March 2014 cycle is getting ready to begin. Cash and optimism can either be a dangerous combination or one of opportunity.

I think opportunity awaits.

For today, anyway, that sense of optimism was warranted, although no one will ever know why the market simply thumbed its nose at yesterday. There really was no good news to warrant the strong performance that was even a little muted due to Wal-Marts performance. Even the Philadelphia Fed Survey and the PMI Index had nothing that gave hope to optimists, yet they didn’t need additional hope.

I do. But I’m always willing to go along for this kind of a ride.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

Click here for reuse options!
Copyright 2014 TheAcsMan