Update: December 5, 2016

| December 5, 2016

December 5, 2016

 

Portfolio Update

We’ve only had 4 losing days in the last three weeks since the election.  The Trump rally is strong and is helping our portfolio of options trades.

How long will this last?

It’s anyone’s guess… but we’re heading into the end of year Santa Claus rally.  After that we have the New Year, which is normally a positive time for the markets.

If you ask me, the economy is strong and should strengthen for some time to come.  Being invested in this market is critical for capturing gains.

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.

December expiration is quickly approaching… if you have any open options for December, start to look to take profits or conserve capital.

  • Caterpillar (CAT) December $92.50 Calls – CAT’s stock price has continued to push higher.  And our options are marching up as well.  Watch this closely as options expiration is right around the corner.  Peak gains were 176% right now.  $97 is the next exit point.
  • HYG December $87 Puts – It looks like the bond market bottom was back in November.  If you haven’t already, take your profits.
  • Ford (F) December $12 Calls – These options really haven’t moved like we expected.  Keep an eye on them… If you see the stock move higher for any reason over the next few days… take your profits and run!
  • Halliburton Company (HAL) January $50 Calls – This stock jumped last week trading through both of our upper exit points of $52 and $54.  Conservative traders should take their profits… Peak profits are 282% right now!  If you’re aggressive, consider holding for this stock to move higher… we have several weeks left on the option.  Just don’t let the profits get away from you.
  • Wells Fargo & Company (WFC) January $50 Puts – Despite continued bad news from the bank, the stock price is holding tight.  The stock hit $53 which was our exit point for conservative investors.  Take some money off the table with this trade.
  • JPMorgan Chase & Co. (JPM) January $72.50 Puts – This trade hasn’t moved our way yet.  The stock hit $81 which was our exit point for conservative investors.  Consider conserving capital with this trade and sell your option.
  • PHM, TOL, DHI – These three stocks sunk last week after economists started warning of a pending rate hike.  While it could hurt home sales, I think we’ll see people rush out to buy houses… we hit the first exit on DHI, conservative investors might take some cash off the table.

 

Category: AOA Updates

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