The Fab 5 update – 04/20/2013

This week was Option expiration for the month of April and the volatility did not disappoint. The market saw the $SPX make a run at 1600 but was violently pushed back to test the 50 SMA. It held that level Friday (1543.90) & bounced so it will be important to watch how Monday plays out.

For the Fab 5, I finished the week with 3 empty slots. $RNR was the first to hit a stop on 4/15. This position goes in the “Not Complete” category. On 4/17 the $CERN hit a stop at B/E and it too goes in the “Not Complete” category. The $AMGN position had already completed the $100 Roll but had April Options as part of the trade. Since these options (Collar) were expiring I elected to plan for closing the trade on Friday – and did so. This trade gets the “Complete” status. The $KSU position was closed earlier in the month but I had April Option pieces still on. The final piece, a Short 95 Put for April, expired. This $KSU position is in the “Complete” status.

The remaining 2 positions in the Fab 5 are: $ACT $ONXX.

Here is the Summary:

04202013Performance Information

  • 29 trades with Complete status since inception (October 2011)
  • Average gain of $11.30
  • 40 trades with “Not Complete” status
  • Average gain of $2.33

Candidate List

  • $HSY
  • $KMP
  • $CERN (will keep this on the list, needs to firm up above $90)
  • $MELI one of these days …
  • $BWLD
  • $PRE
  • $UTX (big mkt cap and may be hard for it to move fast enough with the Time rule)
  • $LH

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