The Fab 5 ($100 Roll)

last updated: 4/21/2017 10:55 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

Kraft Heinz $KHC
I own the July 90/95 Call Spread
Initial entry:  4/12
Options Net:  -$1.67
Last activity:  4/12

Time Warner $TWX  I own the May 2017 90/80 R/R.
Initial entry: 11/14.
Options net: $.02 Last activity: 3/15
Note:  Day #1 on $100 Roll 4/20

Empty seat: (1)   < considering $PG


Recent exits

Jan 2017  $SIG $VAR

 


The Rules

  • 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

 

One thought on “The Fab 5 ($100 Roll)

  1. Pingback: The Fab 5 review - 1nvestor1nvestor

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