I run a variety of stock scans each week. One in particular that I like to do over the weekend is this:
- Week Up
- Friday Up
- Large Cap
- Average Volume >500K
This week there are only 50 tickers but there is a theme that caught my eye:
I see a LOT of Regional Banks in this list (sorted by Friday performance). So after a few minutes of research it appears that the best ETF fit is $IAT:
– DM 12:30 PM CST
Each weekend I do a review of my trading activities for the week and it never ceases to amaze me as to the random volatility and opportunities that surface. The stocks in the Fab 5 certainly did not want to be left out of the action.
I came into the week with a full basket: $COO $MTB $NKE $PVH $TWC
The Cooper Companies drifted lower and looks a little vulnerable here hovering above the $93 level. It has a very short leash given there is no option collar attached at the moment. The position in M&T Bank was the only position not to survive the week as it hit a trail stop on November 7. It had a Collar on which then became a Bear Risk Reversal trade. Nike participated in the drift down as well but is holding above the rising Trend Line below. The November Collar is softening the pullback a lot.
PVH Corp was under some selling pressure as well but is holding the recent big gains rather well all things considered. The November Collar is doing its job, offsetting the loss on the stock position. Finally, Time Warner Cable went sideways this week. It too has a November Collar and like the other collared trades will need to be addressed this coming week as November Options expiration is upon us.
Here is the Summary:
Since I have one slot open, here are some potential candidates to consider:
- $WHR (has held up rather well)
This was a very unusual week for the stock market here in the U.S. as we saw 2 days of weather-related closure to begin the week. A lot of jitters were present as we opened Wednesday but the market seemed to hold together rather well – all things considered.
The Fab 5 saw a nice surprise this week in the $PVH position as it announced some M&A news acquiring $WRC in a $2.9 Billion dollar deal. Investors seemed please as the stock quickly moved through the $100 Roll level to above the $110 level. It ended the week at $111.12 and completed Day #3 of the $100 Roll. This is #22 with a Complete status in the Fab 5. I had a trail stop on the long stock position but elected to pull it and move the November Call strike up to the $115 level (was done at a -$5.95 debit net but allowed me to capture the price move on the underlying).
I had 2 empty slots to fill and elected to enter a new long position in the candidate $COO as well as the pullback candidate $NKE on 10/31. The Cooper Companies was one that I have been watching for a while so it was nice to finally get a comfortable entry. $NKE has taken a lot of patience and is the position that I will be the most nervous about. I have initiated a November Collar on this new position.
Since $MTB continues to work sideways, and it has a November Collar on it, I will let it remain in the Fab 5 until closer to expiration.
Here is the Summary:
I came into this week needing to fill 3 slots and managed to get 2 filled by weeks end – $MTB on 9/11/2012 and $RGLD on 9/14/2012. The existing positions of $COST & $DVA have both officially completed the $100 Roll bringing the total to 20 since inception (October 2011). Both of these positions will be removed this coming week due to September options expiring on Friday – so want to get the most value from them before the premium goes poof.
Here is the summary:
The new $MTB is a covered call position so the gain is capped at $97 with protection to $89.75 – up to October expiration. I will do something with $RGLD soon & will be in October options as well.
Current candidate list is:
I would love to consider stocks like $XOM or $MMM but sure that they will never complete the Roll within the 30 trading day rule (massive market cap or too slow of a mover). $ULTA and $TSCO have been making good stabs at the $100 Roll as of late.
I do already have a current position in $WFM (but not in the Fab 5) – which is a great candidate for this basket – and is worth consideration if you are looking for positions yourself.