Weekly Update: June 2, 2016

| June 2, 2016

Weekly Update:  June 2, 2016

 

What To Watch

With the start of June, let’s take a quick look back at May and how the major asset classes performed over the last month.

Believe or not, the top performing major stock index was the Nasdaq 100, which picked up almost 4% in a month’s time.  The Russell 2000 climbed 3% over the same period, while the S&P gained 1.5%.  For the year, the Russell 2000 has overtaken the S&P 500 and is up 4% to date.

On the commodities-side of things, crude oil increased 8% in May, with natural gas rising 10%.  On the other hand, gold dropped 6.5% and silver gave back 9.5%.  The best performers for the month were orange juice (up 15%) and sugar (up 12%), but neither are heavily traded by most traders.

Jobless claims continue to beat expectations, but we’ll also have the May jobs report to look at tomorrow.  I still find it unlikely the Fed will raise rates in June, but if the jobs report is amazing and stocks don’t tank… well I guess it’s a possibility.  Let’s see what tomorrow’s report brings to the table.

Let’s take a look at our positions.

 

Portfolio Recap

Position #1: LifeLock (LOCK) June 11 Puts

Price Paid: $0.30

Time Until Expiration: 14 days

LOCK has done well with the rest of the market, so probably not much chance of this one dropping to our profit levels.  I’m okay with that if the overall market keeps performing.

 

Position #2: Foot Locker (FL) June 57.5 Calls

Price Paid: $0.70

Time Until Expiration: 14 days

FL has been fairly stagnant since our trade, though it did try to move higher early in the week.  With two weeks to go, there’s still time for the athletic apparel retail giant to make a move.

 

Position #3: Gilead Sciences (GILD) July 90 Calls

Price Paid: $1.04

Time Until Expiration: 42 days

Not a bad first week for our GILD trade.  Although the option price is back to about what we paid for it, we did see a pretty nice uptick earlier in the week with the biotech sector getting a bid.  With these being July calls, there’s plenty of time for a major run from this biotech giant.

 

Category: OTW Weekly Updates

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