Update: July 6, 2015

| July 6, 2015

July 6, 2015

 

Portfolio Update

It’s been awhile since I wrote one of these after there’s been some real action to talk about.  This past week, we saw the return of volatility to the financial markets as the Greece crisis finally unfolded into, well, a real crisis.  While the impact of a Greece exit from the Euro should be minimal to US stocks, the overall uncertainty of the situation is still a red flag to investors.

There’s also the Chinese stock market crash and debt issues in Puerto Rico out there muddying the waters.  As such, there are plenty of fresh concerns to justify the rise in volatility.  In the meantime, the S&P 500 has lost about 1.5% in the past week and is now up just 1.5% on the year.

From a big picture standpoint, I can’t really say I’m that concerned about US stocks for the rest of the year.  From my perspective, the domestic economy still looks very strong.

In fact, I just got back from a cruise to Alaska and Canada for my parents’ 50th anniversary.  The entire cruise ship was sold out, and everywhere we went people were spending money hand over fist.  I didn’t get a sense from anyone I talked to on the cruise that they were concerned about the economy.

That’s not to say that things couldn’t take a turn for the worse.  But, from where I sit, most Americans seem to have plenty of confidence in the economy.  More importantly, consumers are spending money once again.  (This statement is based on stats, not my own travel experiences.)

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.

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.

  • SolarCity (SCTY) July 57.50 Puts – The market selloff last week hasn’t been a total downer for us, thanks to our puts. In fact, SCTY has gotten hammered and is just about at our aggressive exit point.  The puts have been as much as 232% winners so far.

 

  • PulteGroup (PHM) October 19 Calls – We pretty much nailed the surge in real estate stocks, almost exactly on time. PHM has been on a tear, bursting through the 200-day moving average.  We’ve already hit our conservative exit point, with gains as much as 86% on the position.  However, since these are October calls, this could be a good position to hold to the aggressive exit point of $23.

 

  • Pattern Energy Group (PEGI) September 30 Calls – PEGI has pulled back recently with the broad market, but not before it spiked higher and hit our first profit-taking exit point. The stock surged on news of a partial acquisition of a wind power facility. The high point for the position so far is 83% gains.  For aggressive traders, we still have until September expiration for the share price to hit $33.

 

Category: AOA Updates