Category Archives: Week in Review

 

Option to Profit

Week in Review

 

September 5 – 9, 2016

NEW POSITIONS/STO	NEW STO	ROLLOVERS	CALLS ASSIGNED/PUTS EXPIRED	CALLS EXPIRED/PUTS ASSIGNED	CLOSED	EX-DIVIDEND
1  /  1	0	1	1   /   0	1  /   0	0	6

 

Weekly Up to Date Performance

September 5 – 9, 2016

Up until today, it was looking like any other week we’ve seen after the post-Brexit euphoria.

That is, basically nothing to report and very little actually happening.

Then came Friday and a little bit of a meltdown.

Last week, i said that the market showed no character.

This week, if it did have any character, it was the kind that would run for the doors or hide underneath the bed and do so for no reason, at all.

Still, for some odd reason, I found a reason to open a new position and did so during the final 3 hours of trading for the week.

That might be even more odd.

That new position was 0.6% higher, while the adjusted S&P 500 was 2.5% lower for the week and the unadjusted S&P 500 was 2.4% lower.

The new position out-performed the unadjusted S&P 500 by 2.9% and the unadjusted S&P 500 by 3.0%.

For me, it was actually a good week from a trading perspective.

There were 6 ex-dividend positions, one rollover, an assignment and a closed out position.

Unfortunately, there was also an expired position that will now be looking for an opportunity to generate some income.

What was shaping up to be a good week on the bottom line also fell apart on Friday, as the market tumbled.

Existing positions still managed to beat the market by an unusually large 1.8%, but were still 0.6% lower on the week.

With the closing of the old MolyCorp position, the performance of positions closed in
2016 got quite a hit. Additionally, the accounting for the closed EMC position is a little complex, as the spin off entity is accounted for separately and remains open.

With that said, positions closed in 2016 have gone from a 279% out-performance to a % under-performance.

Those positions are now 2.8% lower, while the comparable performance for the S&P 500 during the same holding periods has been 6.8% higher. That represents a -141.3%% difference in return on closed positions. 

Well, this turned out to be an interesting week, thanks to a single day.

There really wasn’t very much to account for the broad sell-off on Friday, except maybe for exhaustion.

I’m sure we’ll hear about some technical signal and we’ll certainly hear the phrase “profit taking,” but there was still no tangible reason for the fear expressed today.

Still it was fairly orderly, as we’re still about 20 points higher on the S&P 500 from where we were when the market first sent into its Brexit decline.

All in all, I was happy for the way the week went, though.

While the market went lower, that’s reversible.

What can’t be taken away are the dividends and the premiums for the week and some cash generation from the assigned and closed positions.

The one new position opened this week with just 3 hours left in trading, was specifically to either capture the dividend or capture the premium.

maybe both.

If only the premium is captured due to early assignment, I thought that the ROI for a single day of holding was enough to warrant the trade, although in this case, I would rather get the dividend, as well and have the oppportunity to do something else with those shares next Friday.

We still have another 10 days or so to go until the next FOMC meeting, so I’m not certain that Friday’s sell-off will be the last between now and 2 PM on that Wednesday.

Even with some money in cash reserves, I may be hesitant to put any more on the line.

To some degree, it’s a little easier sitting on the sidelines next week because there are another 5 ex-dividend positions and  and 5 expiring positions that at the moment show some promise for a combination of assignments and rollovers.

That may be enough to keep me occupied, although I thought the same this week and look what happened.

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:  HPQ

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:  BBY

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: none

Put contracts expired: none

Put contracts rolled over: none

Long term call contracts sold:  none

Calls Assigned:  MRO

Calls Expired:  ANF

Puts Assigned:  none

Stock positions Closed to take profits:  none

Stock positions Closed to take losses: EMC

Calls Closed to Take Profits: none

Ex-dividend Positions:    BBY (9/9 $0.28), GM (9/7 $0.38), GME (9/7 $0.37), MOS (9/6 $0.275), WY (9/7 $0.31), COH (9/8 $0.33)

Ex-dividend Positions Next Week: HPQ (9/12 $0.12), M (9/13 $0.38), NEM (9/13 $0.025), BBBY (9/14 $0.125), JOY (9/15 $0.01)

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.



 

Option to Profit

Week in Review

 

August 29 – September 2, 2016

 

NEW POSITIONS/STO	NEW STO	ROLLOVERS	CALLS ASSIGNED/PUTS EXPIRED	CALLS EXPIRED/PUTS ASSIGNED	CLOSED	EX-DIVIDEND
1  /  1	0	0	0   /   0	0  /   0	0	4

 

Weekly Up to Date Performance

August 29 – September 2, 2016

The market showed a little bit of strength this week, but it showed no character.

The strength that it showed was pretty superficial, though, and doesn’t necessarily translate into anything reliable in the coming week.

It was another week of some, although not much, personal happiness in terms of performance and cash generation.

It was another week with a new position opened, a rarity for 2016.

Like the week preceding, that purchase was an after earnings report release and like the  previous week, the decline in the shares continued.

Hopefully, like the stock from the previous week, the next week will have a rebound and eliminate any regrets.

This week’s new purchase position was 4.0% lower. It trailed the unadjusted S&P 500 by 4.5% and the adjusted S&P 500 by 4.0%

On the week, the unadjusted S&P 500 was up 0.5%, while the adjusted S&P 500 was unchanged.

Existing stocks struggled to keep up with the unadjusted S&P 500, but still it was a good week.

That’s mostly because asset value continued to go higher and did so without oil and commodities 

It was also, however, due to 4 ex-dividend positions.

Since there were no new closed positions for the week, the tally remains the same. Those positions closed in 2016 are still 6.8% higher, while the comparable performance for the S&P 500 during the same holding periods has been 1.8% higher. That represents a 279% difference in return on closed positions. 

The market was mostly treading water this week as it awaited the release of the Employment Situation Report.

That was understandable, particularly as there was good reason to believe that the report could spell the difference between an interest rate hike now, and maybe another before year’s end, or just a single rate hike in Decemer.

It was really anyone’s guess how the market would react to extreme numbers at either end of the spectrum, but its true colors really came out as the slightly disappointing numbers were greeted vary well and then when there was reason to believe that the weak numbers still didn’t rule out a September rate increase, the warm welcome was withdrawn.

No character.

At least not the kind of character you would want to associate with for very long.

With 2 positions set to expire next week and 5 ex-dividend positions and absolutely no idea of what drives the market at this point other than the FOMC’s upcoming meeting in a few weeks, I have no great need to open any new positions next week.

I would be fine with either seeing assignments or keeping the 2 expiring positions in contention to generate more option premium income.

With a holiday shortened week and volatility so low, the premiums aren’t going to be very spectacular anyway, so it might just be a good week to be a casual observer and then just casually take any opportunity that comes along for any existing, but uncovered positions.

That sounds like a plan.

Happy Labor Day.

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:  ANF

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: none

Put contracts expired: none

Put contracts rolled over: none

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:    ANF (8/31 $0.20), BAC (8/31 $0.05), HAL (9/2 $0.18), KSS (9/2 $0.52)

Ex-dividend Positions Next Week: BBY (9/9 $0.28), GM (9/7 $0.38), MOS (9/6 $0.275), WY (9/7 $0.31), COH (9/8 $0.33)

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.



Option to Profit

Week in Review

 

 

August 22 – 26, 2016

 

 

 

 

NEW POSITIONS/STO	NEW STO	ROLLOVERS	CALLS ASSIGNED/PUTS EXPIRED	CALLS EXPIRED/PUTS ASSIGNED	CLOSED	EX-DIVIDEND
1  /  1	2	2	0   /   0	0  /   0	0	0

 

Weekly Up to Date Performance

August 22 – 26, 2016

This wasn’t exactly another in a series of flat weeks, but it was somewhat of a disappointment.

As far as the market goes, that is.

I was personally pretty happy, though.

For starters, there was actually a new purchase for the week, even as it came in its final hours.

That new purchase was 2.0% higher on the week and beat the unadjusted S&P 500 by 0.6% and the unadjusted S&P 500 by 2.2%

The unadjusted S&P 500 was 0.6% lower on the week and the adjusted S&P 500 was 0.1% lower.

Still it was a good week.

But that’s only because existing positions didn’t lose as much as the S&P 500.

They still lost value, though.

But, as is usually the case, in the longer term, your portfolio serves you better by its ability to outperform during declines.

What was good was that there were 2 rollovers and 2 positions had new calls written on them, while some others are now within striking distance of becoming contributing members once again to my coffers.

There were no ex-dividend positions, but that changes next week.

Since there were no new closed positions for the week, the tally remains the same. Those positions closed in 2016 are still 6.8% higher, while the comparable performance for the S&P 500 during the same holding periods has been 1.8% higher. That represents a 279% difference in return on closed positions. Once again,  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.

The market was really all over the place on Friday as the festivities at Jackson Hole came to their end.

What looked like it was going to be the gain to deliver the week from a loss turned out to be a loss that just compounded the mild losses from earlier in the week.

I was still pretty happy about things.

I had the surprising opportunity to trade far more than I thought would be the case.

Some rollovers, some new short positions and even dipping into cash a little bit to open a new position, as well.

It was no accident that the new position is paying a nice dividend in a week or so, though.

I do want those dividends these days as volatility is really drying up the premiums.

As I look at my expiration dates on outstanding short positions, I can’t even begin to recognize myself, as there are so many being written a month, two months or even longer out, instead of the weekly calls that i had really grown to cherish.

With still some cash to invest, I don’t mind the prospect of doing so next week.

With no expiring positions, I would like to have some opportunity to generate some more income, although there is some comfort knowing that there are a number of ex-dividend positions next week and for the remainder of September.

Following Friday’s words from Janet Yellen, Stanley Fischer and the GDP release, it’s hard to really know where the economy is and what the FOMC will be looking at, as far as its time table for an interest rate increase.

From the market’s reaction today, it’s clear that there are multiple sides to the story, multiple interpretations and multiple reactions.

 

 

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:  GME

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:  MRO (9/26)

Calls Rolled over, taking profits, into the monthly cycle: GDX (10/21)

Calls Rolled Over, taking profits, into a future monthly cycle:  none

Calls Rolled Up, taking net profits into same cycle:  none

New STO: INTC (11/2016), MS (11/2016)

Put contracts expired: MRO

Put contracts rolled over: none

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:    none

Ex-dividend Positions Next Week: ANF (8/31 $0.20), BAC (8/31 $0.05), HAL (9/2 $0.18), KSS (9/2 $0.52)

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.

 

Option to Profit

Week in Review

 

August 15 – 19, 2016

 

NEW POSITIONS/STO	NEW STO	ROLLOVERS	CALLS ASSIGNED/PUTS EXPIRED	CALLS EXPIRED/PUTS ASSIGNED	CLOSED	EX-DIVIDEND
0  /  0	0	0	0   /   1	1  /   0	0	2

 

Weekly Up to Date Performance

August 15 – 19, 2016

This was yet another in a series of flat weeks, but it was another in which my complaints may fall on deaf ears.

This was another week of no new purchases and so again there wasn’t too much to think or talk about.

The S&P 500 was down 0.3% for the week and other than a little bit of action following the release of FOMC minutes, there was nothing of any interest for the rest of the week.

Still it was a good week.

There were 2 ex-dividend positions and the expiration of those puts that had been serially rolled over, after having gone out on a little bit of a limb by having rolled them over the previous week even though they were going to expire..

On top of that, even as the market was flat, existing positions again beat the S&P 500, this time by an additional 0.4%. even though that meant that the only finished 0.1% higher for the week.

With the expiration of those puts that added one additional position to the paltry list of closed lots for 2016. Those positions closed in 2016 are still 6.8% higher, while the comparable performance for the S&P 500 during the same holding periods has been 1.8% higher. That represents a 279% difference in return on closed positions. Once again,  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.

With this week’s small advance. it does at least add to the nice performance thus far in 2016.

That’s better than the alternative, although this past week wasn’t one for generating very much in the way of income.

It wasn’t really a week for generating much of anything, including anything of interest.

While there may be some more signs that the FOMC is going to be able to find reason to increase interest rates, no one is really getting excited or getting frightened
.

For the most part earnings season is now over and for the most part is was fairly disappointing.

What may have been most disappointing is that no one seemed to offer anything positive for the rest of 2016.

On the one hand that could set us up for some positive surprises three months from now, but for now it didn’t really offer any kind of catalyst to move higher.

Still, we’re just a hair from those all time closing highs, so something must be going right.

With the expiration of those puts I do have some additional cash that I wouldn’t mind putting to use, although it’s not likely to get any easier next week, just as the past couple of weeks have been difficult to really identify anything with a reward worth the risk.

With no ex-dividend positions next week and the likelihood of the assignment of a short call position, it would be really nice to find something to invest in, but that likely share assignment makes me think that together with the expiration of puts this week, it might e a good time to collect some cash.

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: none

Put contracts expired: MRO

Put contracts rolled over: none

Long term call contracts sold:  none

Calls Assigned:  none

Calls Expired:  FAST

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:    MRO (8/15 $0.05), HFC (8/19 $0.33)

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.