last updated: 3/16/2017 9:55 AM CST
Fab 5 members:
Caterpillar $CAT I own the May 2017 $90 Calls
Initial trade: L stock at $90.82 avg. I sold the stock on 12/30 and bought Mar $90 Calls. Options Net: -$3.96 and booked stock gains of $5.23 Last activity: 3/15
Copa Holdings $CPA I own the May 2017 $90 Calls.
Initial entry: 9/21.
$100 Roll: Day #1 on 2/16. Day #2 on 2/17. Day #3 on 2/20
Options net: $4.02 Last activity: 3/16
Time Warner $TWX I own the May 2017 90/80 R/R.
Initial entry: 11/14.
Options net: $.02 Last activity: 3/15
Empty seat: (2)
(none in Q3)
Jan 2017 $SIG $VAR
- Price must be above $90 (I will make exceptions from time to time, be anticipatory)
- No $100 or above print in prior 52-week period (I will make an exception when appropriate)
- $100 Roll is complete once price is above the $100 level for 3 consecutive days
- Time Rule (2 stages). Stage 1: price must improve 3% in the initial 15 Trading days. Stage 2: 30 Trading days to complete the $100 Roll (if it makes it past Stage 1)
- Starting in 2013 I began considering ETFs in the Fab 5 basket
- Option Rule: If doing a long stock or ETF position, a minimum of 100 option contracts traded daily is a criteria to be a member. Why? Putting on a Collar requires adequate volume – I want to be sure there is some liquidity in the options. Otherwise a Call Spread will only be considered (no stock).
Performance Data (since inception October 2011 to 8/24/2015)
Complete status: 58 trades with an average gain of $12.52
Not Complete status: 91 trades with an average gain of $3.05
Interesting Data points
Former Fab 5 members that have completed the $200 Roll as well: AGN V MCK ACT SHW AMG ALXN AYI MHK PNRA GS PSA LMT ORLY VRX TSLA BWLD
Former Fab 5 members that did the $300 Roll as well: ACT AGN