Weekly Update: October 20, 2016

| October 20, 2016

Weekly Update:  October 20, 2016

 

What To Watch

It’s been relatively quiet in the market overall, as investors focus mostly on individual equities/earnings.  We’re just getting into the heart of earnings season, with lots of big names set to report over the next couple weeks.  Given the way things have gone lately, I wouldn’t expect earnings results to have much impact on the broad market.

Stocks indexes have come down a bit since our last update, but are generally hovering in the same range they’ve held in recent weeks.  The S&P 500 is up about 6%, while the Russell 2000 is leading the major indexes with a 9% year-to-date gain.

The biggest commodity winner this year is still sugar, which is sitting at over 40% gains.  Precious metals are still doing well overall, and oil has picked up steam (no pun intended) in recent days.

The next big event is the FOMC meeting the first week in November.  We could get a good idea if rates will go up in December based on what the committee says.  They almost certainly won’t raise rates until December, at the earliest.

Let’s take a look at our positions.

 

Portfolio Recap

Position #1: Cisco Systems (CSCO) October 30 Calls

Price Paid: $0.98

Time Until Expiration: 1 day

Expires tomorrow.  Everyone should have taken profits.

 

Position #2: Himax Technologies (HIMX) October 10 Calls

Price Paid: $0.60

Time Until Expiration: 1 day

Expires tomorrow.

 

Position #3: Southwest Airlines (LUV) October 38 Calls

Price Paid: $0.95

Time Until Expiration: 1 day

LUV is a huge winner for us, and has hit both of our profit-taking points.  Peak gains reached 363%!

 

Position #4: Ciena (CIEN) October 21 Calls

Price Paid: $1.05

Time Until Expiration: 1 day

Expires tomorrow.  Gains should be locked in.

 

Position #5: KB Homes (KBH) October 16 Calls

Price Paid: $0.37

Time Until Expiration: 1 day

Another one that expires tomorrow and made nice gains for us early on.

 

Position #6: JPMorgan Chase (JPM) November 67.5 Calls

Price Paid: $1.20

Time Until Expiration: 29 days

JPM continues to be a solid winner for us, with the price closing in on our aggressive exit point for profit-taking.  Peak gains have climbed to 125% so far.

 

Position #7: NVIDIA (NDVA) November 60 Puts

Price Paid: $1.42

Time Until Expiration: 29 days

NVDA has been nice and volatile since we’ve made the trade. You can expect plenty more volatility before expiration, especially after earnings hit.  While we haven’t hit any exit points yet, the position has already hit peak gains of 126%.

 

Category: OTW Weekly Updates