Weekly Update: March 5, 2015

| March 5, 2015

Weekly Update:  March 5, 2015


What To Watch

US equities are down small from this time last week, but we’re still within a percent of record highs in the S&P 500. It was mostly a quiet week in terms of stock action as equity investors await bigger news.

One of the more interesting items from the week was the NASDAQ composite hitting 5,000 for the first time in 15 years. The last time the index breached 5,000, it was at the height of the tech bubble. Of course, the bubble burst soon after, and it took nearly 15 years to regain lost ground.

This time around, the NASDAQ is trading at a far more reasonable valuation. Plus, the index isn’t nearly as tech heavy as it was back then. While there may be a selloff in NASDAQ stocks, I don’t believe we’re anywhere near a bubble scenario.

Non-farm payrolls come out tomorrow and provide the biggest piece of economic news of the week. Jobless claims and ADP results were disappointing, so it’s hard to say what will happen tomorrow. Given the mixed economic news over the past month, I’m not sure any February jobs numbers will have too dramatic an impact on stocks.

I’m going to send out a new trade tomorrow, so keep an eye on your inbox.


Portfolio Recap

Position #1: Pandora Media (P) March 17 Calls

Price Paid: $1.33

Current Price: $0.28

Time Until Expiration: 15 days

Still nothing to report on P. Expiration is in two weeks.


Position #2: Overstock.com (OSTK) March 22.50 Calls

Price Paid: $1.35

Current Price: $1.25

Time Until Expiration: 15 days

OSTK briefly made a run at $24 before settling back in around $23. The options are still in the money and still primed for an upside breakout. I think we’ll get a definitive move well before expiration.


Position #3: Intel (INTC) April 34 Calls

Price Paid: $1.25

Current Price: $1.03

Time Until Expiration: 43 days

INTC has regained some lost ground, but is mostly moving sideways. The good news is we’re sitting right around our strike price with over 40 days for an upside breakout to occur. There’s plenty of time to see how this develops.


Category: OTW Weekly Updates