Option to Profit
Week in Review
NOVEMBER 21 – 25, 2016
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Weekly Up to Date Performance
November 21 – 25, 2016
New Record, new record and more new records.
That pretty much sums things up, yet the S&P 500 is up only 8.3%.
Still a good year, but record after record, after record.
This week had no new positions opened as the S&P 500 advanced 1.5%, or about 20% of the year’s gain.
I was, once again, though pretty happy with this week, even though I didn’t open any new positions.
More importantly, while conserving cash from the previous week’s assignments, there was again opportunity to put some idle positions to work with the sale of calls on 3 uncovered positions.
With one ex-dividend position and those 3 call sales there was some generation of income, but there was also the ability to keep up with the advancing market.
Existing positions actually bested the market by 0.1% on the week, adding to their very good performance in 2016.
On paper, anyway, they are well ahead of the 8.3% advance in the S&P 500, but I’m always reluctant to talk about things like that until the profits are booked and not just on paper.
There were no new closed positions this week, so performance of closed positions in 2016 goes unchanged, still sitting with only 27 closed on the year, but still hoping to at least make it to a paltry 30 by the year’s end.
This was another week with really not too much going on.
If anything, we just got one week closer to the FOMC’s next meeting and increasing certainty that there will be an interest rate increase at that time.
No panic, yet, and it’s looking as if there may not be any panic.
While we do hit these new highs, we’re not doing it in a way as to raise any eyebrows.
That’s exactly the way i
t was in 2007. We just wore higher and higher.
Nothing really spectacular, just hard earned positive days, but without those triple digit moves to make people giddy or nervous.
Because of that, I think that we are still headed even higher, unless something stunning happens in the next month or so.
Anything larger than a 0.25% rate increase, or anything that might question the validity of the Presidential election, could create some angst, but I’m not counting, nor hoping for either.
Next week does have the GDP and then the Employment Situation Report, nut unless they too have some really big surprises, there isn’t even anything any of the FOMC members speaking next week can really do or say to change investor sentiment.
With cash still on hand and with nothing on schedule for expiration next week, I take some solace in having about 4 ex-dividend positions. I wouldn’t mind a little bit of profit taking before considering spending any of that cash, but I’m very unlikely to go chasing the market if it moves higher.
If it does, I’ll just be happy to get some more paper profits and perhaps get a chance to sell some more calls or be in a better position to roll some positions over when the December 2016 option cycle is up for its expiration.
I otherwise expect to remain quiet again next week, but certainly wouldn’t mind another week like this one.
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 cycle: none
New STO: GMC, INTC, WY
Put contracts expired: none
Put contracts rolled over: none
Long term call contracts sold: none
Calls Assigned: none
p>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: HFC (11/23 $0.33)
Ex-dividend Positions Next Week: GME (11/29 $0.37), MOS (11/29 $0.275), ANF )11/30 $0.20), BAC (11/30 $0.075)
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.