Weekly Update: August 18, 2016

| August 18, 2016

Weekly Update:  August 18, 2016


What To Watch

Almost nothing new to report, as we endure one of the slowest stock market months in recent memory.  Investors really seem to be taking August off as they await the traditionally more exciting months of September and October.  Volatility continues to be very low in the near term.

In terms of what there is to look forward to, we have future Fed meetings and the election.  I don’t think the election is going to do much to the market, and investors don’t seem to be concerned at the moment.  The Fed, on the other hand, could make a big difference depending on what they say or do at FOMC meetings.  For the time being, it doesn’t look like September is going to be the month where rates go up.

This is really a stock pickers market right now.  It’s hard to find true momentum plays, but there are still plenty of individual names out there which can go up (or down) based on company-specific news and metrics.  And while our portfolio has been fairly stagnant of late, I expect a lot more interesting opportunities to pop up as August comes to a close.

Let’s take a look at our positions.


Portfolio Recap

Position #1: Delta Air Lines (DAL) August 41 Calls

Price Paid: $1.12

Time Until Expiration: 1 day

Not much to do here.  This position expires tomorrow.


Position #2: Cameco (CCJ) September 10 Calls

Price Paid: $0.75

Time Until Expiration: 29 days

Nothing much has happened in CCJ since last week. We’ll see what the coming days bring.


Position #3: Gilead Sciences (GILD) September 85 Calls

Price Paid: $0.77

Time Until Expiration: 29 days

The stock price is slowly trending towards our profit-taking exit point.  I expect we’ll have a chance to get out for a profit in the next couple weeks, so stay tuned.


Position #4: 3D Systems (DDD) September 15 Puts

Price Paid: $0.97

Time Until Expiration: 29 days

Pretty quiet first week for our DDD puts – but the entire market was uneventful this week for the most part.  Let’s see if we get more action in the next week or two.


Category: OTW Weekly Updates