The Fab 5 – update

I came into this week needing to fill 3 slots and managed to get 2 filled by weeks end – $MTB on 9/11/2012 and $RGLD on 9/14/2012. The existing positions of $COST & $DVA have both officially completed the $100 Roll bringing the total to 20 since inception (October 2011). Both of these positions will be removed this coming week due to September options expiring on Friday – so want to get the most value from them before the premium goes poof.

Here is the summary:

The new $MTB is a covered call position so the gain is capped at $97 with protection to $89.75 – up to October expiration. I will do something with $RGLD soon & will be in October options as well.

Current candidate list is:

  • $CNI
  • $FMX
  • $LMT
  • $PVH
  • $TWC

I would love to consider stocks like $XOM or $MMM but sure that they will never complete the Roll within the 30 trading day rule (massive market cap or too slow of a mover). $ULTA and $TSCO have been making good stabs at the $100 Roll as of late.

I do already have a current position in $WFM (but not in the Fab 5) – which is a great candidate for this basket – and is worth consideration if you are looking for positions yourself.


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