Update: May 2, 2016

| May 2, 2016

May 2, 2016

 

Portfolio Update

It’s been an interesting year for trading, with some out of the ordinary situations (on a macro level).  Individually, you never know what may happen with a stock, but overall correlations tend to follow patterns. This year, that’s not necessarily the case.

For instance, most of the major stock indices are up for the year.  The S&P 500 is up nearly 2.5%, the Dow Industrials are up over 3%, and the Russell 2000 is up 1%.  However, the Nasdaq 100 is down nearly 5%!  That’s definitely not normal – although the Nasdaq 100 is definitely heavily impacted by big names on the list like Apple (AAPL), which is down quite a bit this year.

Commodities are also behaving in an interesting fashion.  The market is up and volatility is down, yet gold is up 22% and silver is up 27%.  Meanwhile, crude oil remains volatile from week to week, but is currently up 4% on the year.  The biggest loser this year in commodities is natural gas, down over 20%.

Investors don’t seem overly worried about stocks, at least in terms of volatility.  However, bonds are still up on the year – and I already mentioned precious metals being up. So, there’s definitely a little bit of the safe-haven trade happening.  It will be curious to see how things develop as we head into the traditionally slower summer months.

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.

  • C (Citigroup) June 42.50 Calls – C and JPM both have continued to thrive since making our banking-themed trade. C has now hit both our conservative and aggressive profit-taking points, so everyone should be out for big gains.  Peak gains reached as high as 268%!

 

  • Archer-Daniels-Midland (ADM) June 37 Calls – The grains giant has slowly but surely climbed higher since we made the trade just over a month ago. This past week, we climbed high enough for conservative investors to take profits.  Peak gains in ADM so far are 146%.

 

  • Facebook (FB) June 125 Calls – FB destroyed earnings expectations and soared higher. We finally hit the first profit-taking exit point as well.  Interestingly enough, our high for the option didn’t occur this past week even though it’s the high for the stock (for the duration of our trade).  That’s what time decay will do.  However, we still have done very well on these calls.  Aggressive traders can hold for more.

 

Category: AOA Updates

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