The Fab 5 – weekly update

Oh boy, what a week.

I came into this week with 5 positions, 4 of which had an option collar for November. The expiration of those options was this weekend so I had to do some additional work on the plan for how to exit those with good value. I did a mid-week summary here and added a few small updates in my twitter stream as well:

One of the key decisions I made this week was to turn each of the collared positions into Bear R/R trades. I felt that each position would continue to be under pressure so this was a tactical decision to protect gains in the underlying stock – and then profit from the “morphed” collar as a normal Bear R/R trade (this changed my margin situation, but was for a short-term so acceptable to me).

Each position did hit the defined trail stop at some point during the week, including $COO which did not have any options as part of the trade. $MTB & $PVH had both previously finished the $100 Roll officially so there would good gains. $NKE & $TWC just could not avoid the overall market selling either (although $NKE did get a mild boost from a stock split announcement late in the week).

Here is the Summary:

I now have 5 empty slots to fill but given the holiday shortened week I do not expect to begin putting on a new positions – at least that is the current plan. I will do some work evaluating candidates.

Performance Info

  • 22 positions with a Complete status since inception (October 2011)
  • Average gain of $12.05
  • 34 positions with a Not Complete status
  • Average gain is $2.71