The Fab 5 – weekly update

This week we had October Options expiration and true to form the market gave us a wild finish. I utilize options a great deal with my positions in the Fab 5 and two of them required attention this week: $LH & $PVH.

The $PVH had been doing well but the gain was capped so I unwound the October Collar and initiated a new 100/95 Collar for November using the left over premium from the October unwind (was able to do for free).

The $LH was a different story altogether. This position came under pressure this week and hit the trail stop at 91.40 on 10/17 ( -$.85). I left the option piece on (now a Bear R/R). I then exercised the October 92.5 Put on 10/19 near the close so I am now short the stock (becomes a regular short Swing position now) and is officially removed out of the Fab 5 with a “not complete” status. The October 95 Call expired worthless allowing me to keep the premium that was collected.

I had 2 empty slots to fill and chose $NKE & $TWC during the course of the week. Neither position has option trades associated with them yet – so will be working on that in the coming week.

Here is the Summary:

The candidate list for the 1 empty slot:

  • $COO
  • $FDX
  • $FMX
  • $LMT
  • $MCK


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