Update: July 20, 2015

| July 20, 2015 | 0 Comments

July 20, 2015

 

Portfolio Update

What a difference a couple weeks make!  Last time I updated you, we were in the midst of a major volatility revival.  The VIX has gotten up to 20, and Greece was threatening to leave the Euro.  Oh yeah, the Chinese stock market was also crashing.

Here’s what I said on July 7th in our last update: “For now, keep a close eye on what’s happening in Greece and elsewhere, but don’t panic.  The storm should blow over, and the US economy should still be left entirely intact.”  So it’s no surprise to me that everything is back to being just fine.

The S&P 500 is back up to its record highs, and has gained about 4.5% on the year.  Meanwhile, the NASDAQ 100 has really taken off, and is closing in on 11% gains for the year after climbing 4% over the last month.  And the VIX?  It’s back down to around 12.  So much for volatility!

Basically, Greece decided to stay in the Euro.  China intervened in its markets to keep stocks from selling off.  And, the US economy continues to post strong numbers, especially in regard to housing.

As I said before, there simply isn’t enough data out there to suggest a market selloff should take place.  The US economy is doing well overall.  Moreover, companies are posting reasonable earnings so far.  Granted, it’s still early on in earnings season, but the news has been mostly positive so far.   We’ll see what the next couple weeks bring.

Now, 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.

  • Starbucks (SBUX) October 52.50 Calls – SBUX keeps climbing and analysts keep raising the target price. In a nutshell, the stock continues moving steadily higher on good news.  We’ve hit our conservative profit-taking point and are closing in on the aggressive exit.  Highs on the position so far have been 246% gains.

 

  • TravelCenters of America (TA) September 15 Calls – There hasn’t been a whole lot of news on TA since our trade, but the market itself has reversed and TA has shot higher. We haven’t quite hit our conservative profit-taking point yet, but we’ve seen highs so far of 75% gains.

 

  • Forestar Group (FOR) August 15 Calls – FOR got hit hard during the market selloff. It’s rebounded since then, but not before crossing the risk-control point for conservative investors.  Sometimes market timing can work against you, even if there’s nothing wrong with the stock itself.  Aggressive traders can keep holding to see if the reversal will result in a winning trade.

 

Category: AOA Updates