The Fab 5 – weekly update

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There was a lot of activity this week in the Fab 5 as 3 of the positions took stops on Tuesday, March 6, 2012. I rebuilt the positions during the remainder of the week with the specifics listed above.

NKE and SHW continue to drift higher. Both of the positions have March call options sold against (covered call) so they have earned a little income along the way as well. I received some comments this week about expanding this to other centennial levels and I am considering this. Feel free to add your comments and/or suggestions below.

 

  • Bmag13

    I am new to the website and find  “FAB 5″ interesting strategy since I like higher priced stocks which I also write CC’s on.Is this a core strategy of yours and if so,arethe rules shown in chart ac complete set which you base trading criteria on?

    • 1nvestor

      The Fab 5 is one of my core strategies yes, but not THE core strategy. The premise is to trade stocks that have a high probability of achieving (and surpasing) the $100 price level. I do have a time rule for this to be achieved but will give some leeway there from time to time.