Weekly Update: September 8, 2016

| September 8, 2016

Weekly Update:  September 8, 2016


What To Watch

We’re a week into September, and the markets have remained quiet.  There’s been very little action to speak of from a general market perspective.  Volatility remains close to rock bottom, although the volatility futures curve suggest investors are still a bit worried about what the future may bring.

Still, it’s been an okay year for both stock and bond investors.  The S&P 500 is up 8% for the year.  10-year Treasuries are up 5%.  Once again, the best asset performance (in terms of major assets) has come from precious metals.  Silver is up 40% and gold is up 25%.  The performance of precious metals also suggests investors aren’t entirely complacent about the future (despite low current volatility).

The biggest catalyst for substantial market moves is still likely to come from the Fed. What the central bank says and does at the September FOMC meeting could be big news.  Or, it could be a total yawn fest.  As always, only time will tell.

Let’s take a look at our positions.


Portfolio Recap

Position #1: Cameco (CCJ) September 10 Calls

Price Paid: $0.75

Time Until Expiration: 7 days

Not much going on here.  The position expires next week.


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

Price Paid: $0.77

Time Until Expiration: 7 days

As I suggested last week, there’s not enough time left to expect much from GILD.


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

Price Paid: $0.97

Time Until Expiration: 7 days

DDD regained much of what it lost after last week’s dip.  That’s okay, we’ll milk this trade as a hedge until it expires or hits an exit point.


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

Price Paid: $0.98

Time Until Expiration: 43 days

CSCO remains close to 52-week highs.  Our calls are well into the black with over 40 days left on the trade.  Peak gains so far are up to 108%!


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

Price Paid: $0.60

Time Until Expiration: 43 days

HIMX has been a bit volatile this past week, but the trend still looks positive.  The stock is sitting well above our entry point, with plenty of time left on the position for those who want to hold for bigger gains.


Position #6: Southwest Airlines (LUV) October 38 Calls

Price Paid: $0.95

Time Until Expiration: 43 days

Our recent hot streak has continued, this time with LUV.  The stock got a nice boost yesterday and today, and we already hit our profit-taking point for conservative traders.  Those who want to hold for bigger gains can wait until the aggressive exit point, but peak gains so far are already at 100% in just a week.


Category: OTW Weekly Updates