Weekly Update: June 9, 2016

| June 9, 2016

Weekly Update:  June 9, 2016

 

What To Watch

June has been a pretty solid month for stocks so far.  There may be some bearish action coming up between the Fed meeting and comments from big investors, but generally speaking, stock movement is more of the bullish variety lately.

For the month, the Russell 2000 has been the top performer of the major indexes, up 2.5%.  The small cap benchmark is now up 5% for the year and has passed the S&P 500 as the top performing major index year-to-date.  Speaking of the S&P 500, it’s up 1% in June and 4.5% for the year.

In June, the top commodity has been natural gas.  The embattled energy source has actually climbed 14% in June.  While natural gas is down 4.5% for the year, it’s made up a ton of ground from the lows.  Silver is up 8% for the month and has climbed 25% this year, surpassing gold as the top performing precious metal for 2016.

The success in 2016 of gold, silver, and bond investments suggest there are still concerns about the global economy.  We’re also seeing some pretty big bets on gold from investment gurus.  On the other hand, the US economy appears to be doing okay.  The last jobs report wasn’t any good, but jobless claims still look strong.

Let’s take a look at our positions.

 

Portfolio Recap

Position #1: LifeLock (LOCK) June 11 Puts

Price Paid: $0.30

Time Until Expiration: 7 days

As I’ve said before, LOCK has gone higher with the market, and I’m okay with that.  This position should be closed by now.

 

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

Price Paid: $0.70

Time Until Expiration: 7 days

FL continues to move in nearly a straight line. We have one more week for the stock to break higher.

 

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

Price Paid: $1.04

Time Until Expiration: 35 days

GILD pulled back a bit today, but had been moving higher generally.  Plenty of time for the stock to break above $90 before our calls expire in July.  Peak gains so far are 44%.

 

Position #4: Apple (AAPL) July 105 Calls

Price Paid: $0.49

Time Until Expiration: 35 days

AAPL has been pretty solid in the first week of the trade, with repeated attempts to break through the $100 barrier.  I have a strong feeling the stock will make a significant move above $100 before July.  Peak gains are 53%.

 

Category: OTW Weekly Updates