Weekly Update: December 24, 2013
Weekly Update: December 24, 2013
What To Watch
Just a quick update to tide you over until next week…
The markets are fairly quiet with many investors taking it easy over the holidays. While the general direction of the major equity indices has been up, there hasn’t been a whole lot of volume. I don’t expect any really meaningful moves until after the New Year begins.
On the economic front, durable goods came in better than expected, rising 3.5% from last month compared to expectations of 2% from analysts. Once again, the strengthening economy rolls onward. 2014 could finally be the year we see “normal” economic growth. Stay tuned! And don’t forget to enjoy the holidays!
Portfolio Recap
Position #1: Millennial Media (MM) February $7.50 Calls
Price Paid: $0.65
Current Price: $0.75
Time Until Expiration: 59 days
MM is still hanging out around $7 per share. Our call price has mostly remained stable as it’s too early for time decay to be a factor. We’re waiting on this one to break over $7.50 and we have plenty of time left.
Position #2: Cree (CREE) January $60 Calls
Price Paid: $1.52
Current Price: $2.47
Time Until Expiration: 24 days
CREE broke through $60, right on schedule. Our calls are now 62.5% winners. We have 24 days left to expiration, so we’ll ride this winning trade a bit longer as there’s nothing stopping the shares from moving even higher now that major resistance has been breached.
Position #3: General Cable (BGC) February $30 Calls
Price Paid: $1.25
Current Price: $1.20
Time Until Expiration: 59 days
BGC continues its slow trek to $30 (and higher). If it breaks through the 50-day moving average at around $30, the next stop is $32. That’s my initial exit point goal, although we’ll see how the stock behaves in the coming weeks.
Position #4: American Eagle (AEO) February $14 Calls
Price Paid: $0.98
Current Price: $1.25
Time Until Expiration: 59 days
AEO starting moving the right direction and is on track to hit $15 in the near future. Our calls are up 27.5% so far, but there’s plenty of time – and upside potential – left. The 200-day moving average is right around $17 – and I believe that’s a realistic goal for the stock to hit before February expiration.
Category: OTW Weekly Updates
