Update: April 4, 2016

| April 4, 2016

April 4, 2016

 

Portfolio Update

The financial markets have certainly stabilized over the last several weeks, especially the equities markets.  Overall volatility is way down, and we’re seeing a definite turn towards complacency.  This trend is likely to continue until some kind of market moving news comes out.  That being said, earnings start next week.

The S&P 500 and DJIA are both up about 2% for the year, while the Russell 2000 and Nasdaq 100 are down about 2%.  On the other hand, 10-Year Notes are up 4% and gold is up nearly15%.  Basically, if you had gone with “safety first” in regard to your investment strategy, you’re doing pretty well right now.

In the meantime, the rollercoaster that is crude oil is back on its way down.  Crude is down 15% for the year, but was actually up on the year just a couple weeks ago.  Oil is trading around $35 a barrel.  It could continue to bounce between $30 and $40 for the foreseeable future.

Meanwhile, the US economy continues to add jobs and wages are also growing (albeit slowly).  At the same time, interest rates are likely going to remain stable for some time with the Fed in no hurry to raise rates.  It’s once again a pretty good environment for US-based companies.  We’ll know more with earnings starting next week.

Let’s take a look at some portfolio highlights…

 

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.

  • Apple (AAPL) June 110 Calls – Our theme from mid-March is starting to payoff, with a couple big tech names having a good couple weeks. AAPL shares have been on a tear lately, and have closed above our first profit-taking point.  Peak gains so far are 160%.

 

  • Albemarle (ALB) April 60 Calls – ALB has continued to skyrocket – excitement over electric cars certainly helped give lithium a boost – and we’ve hit both of our profit-taking exit points now. Peak gains for the trade are 245%!

 

  • Facebook (FB) June 125 Calls – Our other bullish trade from mid-March, FB has also performed well. We haven’t quite hit our first profit-taking point, but we did come close last week.  Still plenty of time on these calls, and the stock has definitely been moving the right direction.  Peak gains so far are 80%.

 

Category: AOA Updates

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