The Fab 5 – the week in review

I came into this week with one spot to fill and needing to finish building the position for $DVA. The market didn’t care about my plans though with several days of negative closes on the indexes. Ultimately I was able to add the 2nd 1/2 position in $DVA on July 11th at a cost of $96.70 (the average entry is in the table below).

I monitored the candidate list throughout the week looking for a solid entry to fill the empty slot but did not add any new members this week.The casualties this week are:

  • $ALXN as it hit a trail stop on the stock position on July 9th at $101.50. The remaining Option Collar was worked for some value by selling the July 100 put at $5.50 on 7/12. The short July 105 call remains with the expectation that it expires this coming Friday.
  • $WFM had a pullback that triggered a trail stop hit on July 12 at $92.05. I also sold the July 95 put for $3.30 (from the Collar) leaving the remaining short July 100 call. Although the stock position was exited, I continued to stalk it in the hopes that it would bounce – it did and I re-entered at $93.2 later in the day on July 12. I have sold the August 100 call against the position for $1.85 and I am bidding for the August 95/90 put spread with the proceeds.

So in summary, the Fab 5 has 3 positions and the remaining short call on $ALXN.

Here are the details:


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