Update: February 27, 2017

| February 27, 2017

February 27, 2017


Portfolio Update

Wow… The Trump Rally continues!  

Just look at this chart…

S&P 500

As you can see, the market is continuing to surge.  If it’s still up by the end of next week, we’ll probably deploy a few put positions to protect our downside.  The S&P is clearly overextended, and the most recent impressive run just makes me more nervous.  

There are three possibilities…

One, we continue higher… which is probably unlikely given the high prices already achieved in the market.

Two, we stabilize and flatline for a while… this is likely as the market will take a breather, and provided we don’t see a big economic shock, we can hold these lofty valuations.

The third option is a correction.  This too is possible as regular pullbacks in a growing market are not uncommon.  Keep your eye on the market, as a correction will come fast, and be a great buying opportunity!

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.

  • BBT $48 Calls… Wow, the stock moved into the money… and we still have a few weeks left on the option.  Watch this closely… if we get a nice move higher, the profit level on the option will come fast.  Take profits as soon as you see them!
  • COF $92.50 Calls… Once again, we are seeing a nice move in the stock, bringing the option into the money.  We only have a few weeks on the trade… so keep your eye on this one.  If we get another bounce higher, don’t be afraid to take profits!
  • TIF $85 Calls… This stock is screaming higher!  We’re up over 260% on this trade!  If you’ve got a bunch of contracts, sell a few to lock in your gains… but we have another few months before options expire. This could be a big winner for us!  Hold tight.
  • BBY $45 Calls… Best Buy is still climbing the charts slowly.  We’re now “in the money”.  The option is up to $2.80… giving us a nice profit. But we have time… hold tight.
  • ROST $67.50 Calls…  We’re well in the money on this one… profits are 90% and climbing.  The stock is looking strong so keep holding tight.


Category: AOA Updates