The Fab 5 – weekly update

I came into this week with a full basket in the Fab 5: $LH $MTB $ONXX $PVH $RGLD. There was quite a bit of action with the 2 stocks suffering an exit due to pullbacks/gaps that exceeded the set trail stop (or other position rules).

$ONXX hit a trail stop on 10/9 at 88.85 for a small gain. I had not had ample time to put on an Option Collar so the stop was the only protection on the gains. So be it.

$RGLD suffered a gap down move on 10/11 (share offering). This is how I unwound the position:

Owning the October 100/95 Collar on the $RGLD position helped to offset the loss of the gains on the long stock position – another example of how a stop is just not enough protection.

Here is the summary:

The remaining 3 positions have options attached that are helping to protect some of the gains that had been achieved up to this point. The Collar on $PVH is really a benefit as price has fallen under entry, but owning the October 95 Put has some good value stillĀ  (which will need to be taken advantage of before expiration this coming Friday).

Performance Stats updated:

  • 20 positions with Complete status and average gain of $12.06
  • 29 positions with Not Complete status and average gain of $2.98


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