Weekly Update: March 31, 2016

| March 31, 2016

March 31, 2016


What To Watch

Another quiet week just passed us by with the market reaching complacency levels very similar to the first half of last year. There’s simply not a lot of action in the broad market right now. Investors are essentially in wait-and-see mode until bigger news hits the wire.

The S&P 500 climbed about a percent from last week and is now up roughly a percent on the year. That’s quite the turnaround from down 10% in mid-February! The big winner from the week was the Russell 2000, which climbed over 3% since our last update. The Russell has come a long way from its lows and is now down only 1.5% on the year.

In terms of commodities, gold is still the best performer, up 16% year-to-date. Silver is up just under 12% over the same time span. Crude oil dropped back to roughly $38 per barrel and is down over 8% for the year. We’re still waiting for a rebound in natural gas, which takes the worst performer prize this quarter after dropping 20% to date.

It was probably the most boring week I’ve seen in months in terms of our portfolio. Basically, none of our positions really did anything… very little movement overall. It’s really pretty odd if you think about it. Of course that’s not really a good thing due to time decay, but we still have a couple weeks left on all the current positions.

Let’s take a look.


Portfolio Recap

Position #1: Bank of America (BAC) April 13 Calls

Price Paid: $0.82

Current Price: $0.69

Time Until Expiration: 15 days

Most of you are probably out of this after hitting our exit point last week. The stock has been mostly sideways since our last update.


Position #2: Silver Wheaton (SLW) April 15 Puts

Price Paid: $1.05

Current Price: $0.11

Time Until Expiration: 15 days

Silver did breakthrough support this week and SLW followed suit. It’s likely too late to mean anything for our April puts though.


Position #3: eBay (EBAY) April 25 Calls

Price Paid: $0.69

Current Price: $0.15

Time Until Expiration: 15 days

EBAY has been an enigma in the sense that it’s barely budged since we made the trade. That’s highly unusual. This stock could be an example of the rare circumstance where you could have sold un-hedged straddles and gotten away with it.


Position #4: Freightcar America (RAIL) April 17.5 Calls

Price Paid: $0.75

Current Price: $0.15

Time Until Expiration: 15 days

RAIL seems to have bottomed out, although it will take a few more days to see what the trend looks like. Our options aren’t worth much right now, but it will only take one big move for our strike to be in play again.


Position #5: Box (BOX) April 12 Calls

Price Paid: $0.97

Current Price: $0.65

Time Until Expiration: 15 days

BOX also continues to be strangely quite since we bought our calls. Not much to report, but we are still in the money with our trade.


Position #6: GoDaddy (GDDY) April 31 Puts

Price Paid: $0.95

Current Price: $0.55

Time Until Expiration: 15 days

Amazing, GDDY has also been nearly straight sideways. Not much to say about this one either. It really was about as uneventful a week as you could imagine for our portfolio!


Category: OTW Weekly Updates