Weekly Update: April 21, 2016

| April 21, 2016

Weekly Update:  April 21, 2016

 

What To Watch

We’re starting to see a bit more volatility now with the heart of earnings season upon us.  There’s also been a fair amount of volatility around oil. Still, the market remains near all-time highs.  At the moment, there’s not a lot of reason to believe a major reversal is on the way.

Since last week, the S&P 500 is up a half a percent and is now up 3% for the year.  The Russell 2000 is also still up on the year, but the Nasdaq 100 is back down 1.5% for 2016.  The Dow Jones Industrial leads the major averages, up 4% year-to-date.

Oil has been all over the place lately, but is actually up 1% for the year.  Lower supplies in the US have pushed the price of crude back up to around $44 per barrel.  Gold is up 18% in 2016 to near $1,250 per ounce.  The biggest gainer this year is silver at a 23% increase and around $17 per ounce.

In economic news, initial jobless claims are at significantly low levels – still as low as they’ve been in 42 years.  The labor market is certainly getting to be tighter, and we’re starting to see the result in increased wages.  This is definitely a good situation for the economy.

Let’s take a look at our positions.

 

Portfolio Recap

Position #1: Wells Fargo (WFC) May 48 Calls

Price Paid: $0.88

Time Until Expiration: 29 days

WFC continues to shine and it recently broke our first profit-taking exit point.  Conservative traders can exit now, while aggressive traders can keep holding for more upside potential.  Peak gains so far are at 201%!

 

Position #2: Ciena (CIEN) May 18 Calls

Price Paid: $0.62

Time Until Expiration: 29 days

It’s still too early to make any judgments on CIEN, but the stock has pulled back a bit since our trade.  We haven’t hit any exit points yet, so definitely keep holding.  The pullback is due to the entire tech industry experiencing a minor selloff – it’s nothing stock specific.  We still have plenty of time on these calls.

 

Category: OTW Weekly Updates