Weekly Update: March 26, 2015

| March 26, 2015

Weekly Update:  March 26, 2015


What To Watch

There’s still a fair amount of uncertainty and sideways action in US equities as we approach the end of the first quarter.  The S&P 500 is back to basically flat on the year and just under the 50-day moving average.

Investors try to digest a host of variables and how they may impact stocks moving forward.  Domestic economic news is still the most important.  But, oil prices are still something being watched closely, along with geopolitical hot spots around the globe.

Oil continues to be on its own rollercoaster ride.  Record levels of supplies are being weighed against fighting in Yemen as oil traders try to figure where prices will settle in.  The price of crude oil could remain volatile for a while and add volatility to stocks.

US economic news remains mixed as usual.  Jobs data has been good.  Spending data (in terms of durable goods) was worse than expected.  With March coming to a close, we’ll have another big jobs number soon.  As always, stay tuned.

I plan on sending out a new trade early next week.  Let’s see what stocks do as we head into the weekend.


Portfolio Recap

Position #1: Intel (INTC) April 34 Calls

Price Paid: $1.25

Current Price: $0.05

Time Until Expiration: 22 days

As I expected, INTC hasn’t been able to recover.  In fact, the tech selloff this week took the chipmaker even farther down.  We’ve hit the aggressive risk-control point, so everyone should be out of this trade.


Position #2: Take Two Interactive Software (TTWO) April 25 Calls

Price Paid: $1.15

Current Price: $0.70

Time Until Expiration: 22 days

TTWO also get hit with the tech selloff this week, but there’s nothing stock specific to worry about.  The share price is sitting at the 200-day moving average, which should provide strong support.  I believe the stock will recover with the overall market and make a run for the 50-day moving average. We have three weeks until expiration.


Position #3: Prudential Financial (PRU) April 82.50 Calls

Price Paid: $1.77

Current Price: $1.07

Time Until Expiration: 22 days

PRU has shares continue to show volatility and have trended down somewhat since our last update.  The recent news has been mostly positive, so I believe we’ll see a reversal in the stock the next time we have a decent up day in the overall market.  Once again, still three weeks to go and nothing has happened to change my thesis.


Position #4: Blackberry (BBRY) May 10 Calls

Price Paid: $0.70

Current Price: $0.50

Time Until Expiration: 50 days

The only action in BBRY has been related to the overall market/tech selloff.  The share price isn’t far from where we bought our calls.  The big news for BBRY will be the company’s next earnings report which happens… tomorrow!  Stay tuned as we could see a big move after earnings release at the opening bell.


Category: OTW Weekly Updates