Weekly Update: April 28, 2016

| April 28, 2016

April 28, 2016

 

What To Watch

Big picture (or market) volatility is down, but individual stocks are moving quite a bit due to earnings.  We’ve had some pretty big surprises this week, mostly from tech giants.  Apple (AAPL) was a bit disappointing and then Icahn sold off all his shares today, which pushed the market lower in general.

On the other hand, as I write this, Amazon (AMZN) is soaring after hours after killing earnings expectations.  That could be a good sign for the markets tomorrow.

Year to date, the S&P 500 is still up over 2%, the Russell 2000 over 1%, and the Dow Industrials over 3%.  On the other hand, the Nasdaq 100 is down over 4% right now after pulling back this week… but it will get a huge boost tomorrow from AMZN.  In the meantime, crude oil is back to up 6% for the year.  Silver is still leading the commodity charge, up 27% so far in 2016.

The Fed decided to leave rates unchanged, which was 100% expected.  They also aren’t in a hurry to raise rates anytime soon, which was mostly expected as well.  First quarter GDP came in a bit lower than expected, but first quarter numbers usually tend to be overestimated.  There’s still nothing to really worry about economically in the US.

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: 21 days

WFC has continued its nice run higher and came within pennies of our aggressive profit-taking point.  Peak gains so far are at 269%!  Feel free to take profits on this huge winner whenever you’re comfortable doing so.

 

Position #2: Ciena (CIEN) May 18 Calls

Price Paid: $0.62

Time Until Expiration: 21 days

Every time CIEN looks like it’s going to break higher, it pulls back.  That’s obviously a frustrating situation for us – but we haven’t hit a stop-loss point yet.  There’s still plenty of time, and not far to go, for these calls to be winners by expiration.

 

Position #3: Western Digital (WDC) May 46.50 Calls

Price Paid: $1.35

Time Until Expiration: 21 days

Our trade from last week has done quite well so far. WDC hasn’t hit a profit-taking point yet, but it’s definitely gotten close.  In just a week since we made this trade, our position has seen peak gains of 91% already.

 

Category: OTW Weekly Updates