Update: November 21, 2016

| November 21, 2016 | 0 Comments

November 21, 2016


Portfolio Update

The last two weeks have been very exciting for the markets.

The surprise win by Donald Trump for President whipsawed the markets by hundreds of points, then set up a massive rally.  We had an almost 1,000 point rally in the Dow… which pushed a number of our options trades into the positive.

The last few days the market’s been flat, which sets up a very interesting next few weeks.

The holiday season is always one for low trading volumes with the occasional bout of volatility.  Watch the end of year for a taste of market sentiment.  November options are done, and December options are up next… watch closely for these options for quick moves and profit opportunities.

On to our 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.

  • Morgan Stanley (MS) November $32 Calls – We had a big run in the stock at the end… with the options pushing into the money by more than $7!  Peak gain on this trade… for those of you still in it… was over 500%!
  • Compass Minerals (CMP) December $75 Calls – The stock rallied over $77 briefly last week, pushing our gain even higher on this stock.  As options expiration is so near, keep a close eye on this trade and consider taking profits on any sign of weakness.
  • LionsGate (LGF) December $20 Puts – This stock popped with the rest of the market over the last two weeks… (not the direction we were expecting).  We’ve hit our first conservative exit point.
  • Barrick Gold (ABX) December $18 Calls – Gold prices have fallen over the last two weeks as the US Dollar strengthened.  We hit our second exit point on this trade; everyone should be out.
  • Caterpillar (CAT) December $92.50 Calls – The recent surge in CAT has pushed our options up to the first profit taking point.  Peak gains were 115% last week.  Consider holding for more of a run!
  • JB Hunt (JBHT) February $75 Puts – Well, we got this trade dead wrong… the stock rallied up with the market and pushed as high as $91.  Everyone should be out of the trade by now.
  • Valero (VLO) January $62.50 Calls – The move in this stock is great for us… We hit the first exit point… and peak profits are 180% so far!


Category: AOA Updates