Weekly Update: July 23, 2015

| July 23, 2015

Weekly Update:  July 23, 2015


What To Watch

We’re essentially back to the summer doldrums.  Volatility has plummeted to levels we’re used to seeing when not much is going on in the markets.  In fact, the only thing really keeping it interesting lately is we’re in the heart of earnings season.

The S&P 500 has come back to earth a bit after surging higher.  It’s up about a quarter percent from last week and 3.75% for the year.  The benchmark index is also sitting right at the key 50-day moving average.  Will the line hold as support?  We’ll know very soon.

Earnings have been mostly good so far, with the biggest disappointment being Apple (AAPL).  However, Google (GOOGL), Amazon (AMZN), and Netflix (NFLX) have done very well.  Those strong results also help explain the NASDAQ 100’s 5% performance premium over the S&P 500.

There wasn’t much about the US economy out this week, but next week brings durable goods and GDP.  In the meantime, interest rates are still expected to go up before the end of the year.  Most likely, it’s going to be a small, token rate hike.

Tomorrow I’m going to roll out a new trade.  Keep an eye on your inbox!


Portfolio Recap

Position #1: Cameco (CCJ) August 15 Calls

Price Paid: $0.53

Current Price: $0.10

Time Until Expiration: 29 days

CCJ is still falling well below expectations.  However, the stock has stabilized lately.  We still have about a month for the share price to rebound.


Position #2: Bank of America (BAC) August 17 Calls

Price Paid: $0.39

Current Price: $1.25

Time Until Expiration: 29 days

Another week, another new 52-week high set by BAC.  The stock has been just a couple pennies shy of our aggressive exit point.  Feel free to cash out whenever you want if you’re still holding on to the calls.  High point gains so far are 290%!


Position #3: Oracle (ORCL) August 41 Calls

Price Paid: $0.75

Current Price: $0.14

Time Until Expiration: 29 days

ORCL has done exactly what I didn’t want to see.  It didn’t move up during the NASDAQ rally, but sold off hard when the NASDAQ dropped.  Basically that stinks.  Conservative investors can exit for risk control at this point.  However, we’re right at the borderline for the exit point, so you may want to hold for a rebound.  We still have a month left on this position.


Category: OTW Weekly Updates