Weekly Update: May 19, 2016

| May 19, 2016

Weekly Update:  May 19, 2016

 

What To Watch

There hasn’t been all that much going on in the markets since last week.  Volatility is up a bit, but we also had some very good earnings from the likes of Walmart (WMT) and Home Depot (HD), suggesting the retail environment in the US isn’t so bad.

All the major stock indices are close to flat compared to last week.  The big picture remains the same for the year: large cap stocks are generally up small while small caps and tech are lagging.  Once again, it’s been a heavy stock pickers’ market with a lot of sector rotation occurring.

Crude oil had a nice week, up nearly 4%.  Black gold is now up almost 11% on the year.  As I’ve said before, with as low as oil has been in recent months, it’s better for the economy to see a moderate increase in oil’s price.  It’s certainly good news for the struggling energy sector.

The good retail earnings results helped shed some light on the economy, which is still performing relatively well.  The jobs market looks stable after jobless claims fell back into line after a couple of unexpected spikes.  The Fed also didn’t reveal any surprises in the minutes released this week.

Let’s take a look at our positions.

 

Portfolio Recap

Position #1: Wells Fargo (WFC) May 48 Calls

Price Paid: $0.88

Time Until Expiration: 1 day

Expires tomorrow.

 

Position #2: Ciena (CIEN) May 18 Calls

Price Paid: $0.62

Time Until Expiration: 1 day

Couldn’t get the momentum needed to break through.  Expires tomorrow.

 

Position #3: Apple (AAPL) May 95.50 Calls

Price Paid: $0.92

Time Until Expiration: 1 day

We may have to look at this trade again now that Buffett is on board.  These calls expire tomorrow but we may put something similar on again soon.

 

Position #4: LifeLock (LOCK) June 11 Puts

Price Paid: $0.30

Time Until Expiration: 28 days

Pretty much a non-event since we made the trade.  We have about a month left on these puts.

 

Category: OTW Weekly Updates