Option to Profit

Week in Review

 

MARCH 14 – 18, 2016

 

NEW POSITIONS/STO NEW STO ROLLOVERS CALLS ASSIGNED/PUTS EXPIRED CALLS EXPIRED/PUTS ASSIGNED CLOSED EX-DIVIDEND
0  /  0 0 1 1   /   0 0   /   0 0 3

 

Weekly Up to Date Performance

March 14 – 18,  2016


At least this week it wasn’t all about oil.

For the first time in about 2 months we had a minor diversion from oil, thanks to an FOMC meeting.

There were no new positions opened this week.

Existing positions were able to match the performance of the S&P 500 for the week as it was 1.3% higher, as the market finally undid the losses of the first 6 weeks of 2016.

There was finally another assignment this week to join the solitary other assignment of 2016, marking the slowest start to a year that I can recall since 2008 and certainly the slowest for OTP.

To date, with only 2 assigned positions on the year, they are out-performing the S&P 500 for their holding periods by 3.2%, as the closed positions are 3.1% higher and the S&P 500 for the same periods of time is 3.0% higher.

Still, with such little activity, it does continue to feel good to seeing portfolio values, especially when that performance exceeds the market, as it did again this week and continues to build on its relative out-performance for all of 2016.

The market finished nicely higher for the week, following the trend that began at 2016’s low point on February 11th.

Oil continued higher, but despite some thought that maybe stocks were thinking about going their own way, by the latter part of the week any idea like that was thrown out.

What the week offered wa
s news from the FOMC that interest rates will not likely be increased as often as they may have originally planned.

Even though that reflects poorly on the economy, investors took that as being good news for them.

More cheap money is clearly more important than more economic expansion.

Just as with stocks following oil higher, at some point there has to be a realization that it’s the economy that should really matter and not being able to avoid a 0.25% increase in rates.

But that’s a realization for some other time.

It was nice to have a rollover this week and especially nice to have an assignment.

Although there were 3 ex-dividend positions this week, I still would have liked to have seen some more income opportunities. While Best Buy also had a Special Dividend, in addition to its regular dividend, I don’t really count those as the option strike prices are adjusted lower to account for those special dividends.

I had hoped to be able to sell some calls on uncovered positions, but simply couldn’t get what I thought were fair prices, as volatility started to decline across the board.

Nest week is a trading shortened week as markets will be closed on Friday.

There isn’t too much in the way of economic news next week, although the GDP will be released on Fridays as markets are closed.

Since the FOMC has already guided down on their GDP projection for 2016 there shouldn’t be too many surprises, although we won’t really know until the following Monday rolls along.

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:  M (4/1)

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: none

Long term call contracts sold:  none

Calls Assigned: GM

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   BBY (3/15 $0.28), BBY (3/15 $0.45 Special Dividend), JOY (3/16 $0.01),  LVS (3/18 $0.72)

Ex-dividend Positions Next Week:  none

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.