Update: April 10, 2017

| April 10, 2017

April 10, 2017

 

Portfolio Update

The downdraft in the market has continued… though downdraft might be a bit of a harsh word.  Over the last two weeks, the market has traded in a tight range between 20,500 and 20,750.

What’s interesting is the drop in the market fell to the 50-day moving average… which provided support across the board.

The White House is continuing to throw curveball after curveball at the markets.  Right now, the talk of the town is the tax reform efforts… and that’s second only to the bombing in Syria.  Gold is moving higher… and the markets are awash in speculation.

The stability is good to help build a base in prices… and soon, I think we break to the upside!

Let’s look at the portfolio.

 

Portfolio Highlights

Just a quick note:  We won’t update every open position every update.  I try to focus on the positions that have some significant news or price movement.

  • TIF May 19 $85 Calls… We’ve made a ton of money on this trade… and we still have time for the stock to run.  That said, make sure you have taken some profits… the stock has settled a bit… and with time value eroding every day, we want to make sure we get our profits to the bank!
  • MON April 21 $115 Calls… Monsanto climbed back quickly… like I expected, and our options are “in the money!”  That’s the good news.  The bad news… the options expire next week… so watch these closely.  No matter what happens, exit the trade next week.  If we see a rally this week, pull the trigger earlier and take your profits.
  • NEM April 21 $40 Calls… Unfortunately this stock hit both of our exit points in the last two weeks.  Everyone should be out of the trade… if not, exit soon.
  • JPM June 16 $92.50 Calls… We rolled out the JPM trade expecting strength in bank stocks… but the recent market weakness simply pulled prices lower.  We hit the first exit point.  Conservative traders should exit… aggressive traders, hold tight.
  • Both GM and F hit both exit points… We didn’t get the snap back we expected… and these options hit both support levels.  Exit the trade to conserve capital.  

 

Category: AOA Updates

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