Weekly Update: September 1, 2016

| September 1, 2016

Weekly Update:  September 1, 2016

 

What To Watch

September is officially here, so that means we could start seeing some more volatility in the financial markets.  Historically, September is the most volatile month of the year.  I don’t expect anything crazy to happen, but we could experience a bit more action in the next couple weeks.

After all, August ended up being one of the most boring months in history – at least in terms of volatility.  The major stock indexes traded in a tight range for almost the entire month.  September is bound to be a least a little more exciting from a daily move standpoint.

Overall, it’s turning out to be an okay year for stocks, with the S&P 500 up about 7.5% year-to-date.  On the other hand, long bonds have been even better, with the 30-year bond up 14% for the year.  The pace is still being set by silver, which is beating all major assets, up 35%.

We’re starting to see some good results in our portfolio, with the last few trades performing very well.  We had to get through that August rut, and now our opportunities are starting to pay off.  Stay tuned for more trades ahead!

Let’s take a look at our positions.

 

Portfolio Recap

Position #1: Cameco (CCJ) September 10 Calls

Price Paid: $0.75

Time Until Expiration: 15 days

One of our old trades still hanging around – we’ll need a big boost in uranium the next couple weeks for this stock price to spike.

 

Position #2: Gilead Sciences (GILD) September 85 Calls

Price Paid: $0.77

Time Until Expiration: 15 days

The other older trade that has been pretty stagnant, I don’t have high expectations for GILD with biotech getting hit the last couple weeks.

 

Position #3: 3D Systems (DDD) September 15 Puts

Price Paid: $0.97

Time Until Expiration: 15 days

DDD is finally starting to pay off!  The stock price took a big downswing this week and our puts are right back in business.  We’re closing in our first profit-taking point, with current peak gains at 29%.

 

Position #4: Cisco Systems (CSCO) October 30 Calls

Price Paid: $0.98

Time Until Expiration: 50 days

We nailed our CSCO trade, with the stock already passing our profit-taking point for conservative traders.  There’s still plenty of time for those who are more aggressive and want to wait for bigger gains.  However, we’ve already hit peak gains of 91% – so don’t be afraid to take profits here.

 

Position #5: Himax Technologies (HIMX) October 10 Calls

Price Paid: $0.60

Time Until Expiration: 50 days

Bam! We didn’t quite hit our first exit point yet, but HIMX is flying higher.  We have until October, yet we’re already seeing big gains in this name.  Peak gains after just a week are up to 100%!

 

Category: OTW Weekly Updates