I came in to this week with an incomplete Fab 5 basket of stocks and the plan was to fill out the team. Here is a summary of what existed:
- (3) Fab 5 stock positions ($COST, $DVA, &$WFM)
- I was short the July 105 Call in $ALXN (this stock had completed the Roll and this was left over from the July Collar).
I entered a 1/2 position in $LH as the only new addition this past week. I spent most of my energy managing the existing positions and the option collars that were on for protection. Here is where things stand now as the week concluded:
- $COST is the only Fab 5 position to survive the week. 4 slots to fill, yowza.
- $DVA hits a trail stop on July 18 at $99.20 and was put in the “Not Complete” category. I did record a profit of $3.90 on the trade. This position did not have an Option Collar due to poor volume in the option chains.
- $WFM took some energy to manage this trade. The Option Collar proved to be critical in softening the loss on selling the stock (as it should). I did a blog post here on the specifics. This trade concluded with a gain of $6.30 and was put in the “Not Complete” category. Here are a few twitter messages I posted as I unwound the trade:
- The 1/2 position in $LH did not last long as it was hit with a downgrade. I did have a July 95/90 Option Collar on and this was critical in avoiding a large loss on the stock (-$4.80). I had collected a credit of $.45 on the Collar. The exit on the collar was to exercise the Put. I then closed that part of the trade for a gain of $5.00 on July 20. I let the short Call expire. I managed a small gain of $.65 and this was put in the “Not Complete” category. A few twitter messages:
- $ALXN (will use a rule exception for another shot)
- $DVA (will give another shot)