The following is a list of this week’s new selections. Each week, if conditions warrant, one or more stocks are added to the portfolio with the total never exceeding eight. These stocks have a Market Edge, Bullish technical Opinion. The stocks and option spreads are added to the portfolio based on Monday’s opening prices. The stocks are removed from the portfolio after four weeks or if the Market Edge Opinion is downgraded from Bullish. To access the free booklet that describes the 21st Century Covered Call strategy, click on the Get The Booklet tab located on the home page.
This Weeks 21st Century Covered Call Positions
New Selections: There is one new selection this week: LOW
Market Edge Opinion: The current technical condition for LOW is strong and the underlying indicators should keep the current uptrend intact. The stock has outperformed the market over the last 50 trading days when compared to the S&P 500. The MACD-LT is confirming that the intermediate-term trend is bullish. Chart formation indicates a strong rising trend. The stock is in a short-term oversold condition based on a Slow % K stochastic reading of 20 or lower. Over the last 50 trading sessions, there has been more volume on up days than on down days indicating that LOW is under accumulation, which is a bullish condition. The stock is trading above a rising 50-day moving average. This validates the strong technical condition for LOW. The stock is above its 200-day moving average which is pointed up indicating that the intermediate term trend is bullish.
| Market Posture: | Bullish | VIX–> | 16.09 | Neutral | ||||||
| Stock Price Is Monday’s Opening | * After Symbol Denotes Short Stock Position | |||||||||
| Long | # Of | Stock | S-Put | L-Put | Credit | A-Put | A-Put | A-Put | Approx | Approx |
| Stock | Weeks | Price | Strike | Strike | Spread | Ex. Date | Strike | Debit | Div Date | Dividend |
| MSFT | 11 | $98.61 | 98.5 | 97.5 | $0.36 | 07/20/18 | 95.0 | $4.45 | None | $0.00 |
| CVX | 11 | $124.30 | 124.0 | 123.0 | $0.37 | 07/20/18 | 120.0 | $4.40 | 05/17/18 | $1.12 |
| XLE | 9 | $74.77 | 74.5 | 73.5 | $0.30 | 07/20/18 | 175.0 | $2.43 | None | $0.00 |
| LULU | 8 | $124.21 | 124.0 | 123.0 | $0.41 | 09/21/18 | 100.0 | $8.45 | None | $0.00 |
| HSY | 7 | $92.66 | 92.5 | 91.5 | $0.35 | 08/17/18 | 95.0 | $5.30 | None | $0.00 |
| PYPL | 7 | $83.08 | 83.0 | 82.0 | $0.36 | 08/17/18 | 82.5 | $4.85 | None | $0.00 |
| SWKS | 6 | $96.08 | 96.0 | 95.0 | $0.40 | 08/17/18 | 100.0 | $5.30 | None | $0.00 |
| UTX | 6 | $124.17 | 124.0 | 123.0 | $0.38 | 08/17/18 | 125.0 | $3.50 | None | $0.00 |
| PEP | 5 | $109.23 | 109.0 | 108.0 | $0.33 | 08/17/18 | 100.0 | $2.50 | 07/10/18 | ??? |
| V | 4 | $132.35 | 132.0 | 131.0 | $0.33 | 09/21/18 | 135.0 | $4.90 | None | $0.00 |
| LOW | 1 | $94.17 | 94.0 | 93.0 | $0.33 | 10/19/18 | 5.3 | $4.90 | 07/24/18 | $0.48 |
For reporting purposes, stock positions are closed after four weeks of play or if the Market Edge Opinion is downgraded from Bullish..
The 21st Century Covered Calls Model Portfolio – Track Record
| S&P: | 01/26/18 | 2872.87 | Dollar Profit/Loss = Stock Price Friday – Adjusted Stock Price + (Anchor | |||||||||
| S&P: | 06/29/18 | 2718.37 | Close Credit – Anchor Open Debit) When The Position Is Closed | |||||||||
| S&P Points Gain/Loss: | -154.50 | |||||||||||
| S&P % Gain/Loss: | -5.4% | Adjusted Stock Price = Open Stock Price – Total Spread Profit / Loss | ||||||||||
| Risk Capital: | $100,000 | Spread Losses Occur When The Stock’s Friday Close Is Below | ||||||||||
| Put Hedge Total P/L: | $183 | The Short Put Strike Price | ||||||||||
| Hedge Total % Return: | 0.2% | |||||||||||
| # Of Weeks: | 19 | Anchor Put – Debit/Credits Included In P/L Calculations Only When | ||||||||||
| Hedge To S&P P/L Ratio: | 6.0 | :1 | Positions Are Closed | |||||||||
| Win % – Adjusted Prices: | 40.0% | |||||||||||
| Transaction Costs & Dividends Not Included | ||||||||||||
| * After Symbol Denotes Short Stock Position | ||||||||||||
| Open | Open | Anchor | Anchor | Total | Adjust | Close | Stock | Anchor | Dollar | % | Anchor | |
| Date | Stock | Strike | Open | Spread | Stock | Date | Price | Close | Profit | Profit | Exp | |
| Stock | Monday | Price | Price | Debit | P/L | Price | Friday | Friday | Credit | Loss | Loss | Date |
| CELG | 01/29/18 | $105.23 | 105.0 | $5.50 | -$0.59 | $105.82 | 02/16/18 | $95.26 | $10.40 | -$5.66 | -5.4% | 04/20/18 |
| GILD | 01/29/18 | $87.82 | 87.5 | $4.50 | $0.43 | $87.39 | 04/06/18 | $73.41 | $14.27 | -$4.21 | -4.8% | 04/20/18 |
| SLB | 01/29/18 | $77.18 | 77.0 | $1.72 | -$2.19 | $79.37 | 02/16/18 | $66.28 | $10.20 | -$4.61 | -6.0% | 04/20/18 |
| EA | 01/29/18 | $116.12 | 115.0 | $4.60 | -$1.62 | $117.74 | 04/20/18 | $120.89 | $0.00 | -$1.45 | -1.2% | 04/20/18 |
| ADSK | 01/29/18 | $117.84 | 115.0 | $5.80 | -$2.59 | $120.43 | 05/11/18 | $136.21 | $0.00 | $9.98 | 8.5% | 04/20/18 |
| WDC | 01/29/18 | $89.33 | 90.0 | $5.50 | -$3.32 | $92.65 | 05/04/18 | $80.88 | $12.75 | -$4.52 | -5.1% | 05/25/18 |
| PEP | 02/05/18 | $118.24 | 120.0 | $4.35 | -$1.12 | $119.36 | 02/09/18 | $111.18 | $7.35 | -$5.18 | -4.4% | 04/20/18 |
| XOM | 02/05/18 | $82.98 | 82.5 | $2.75 | -$1.21 | $84.19 | 02/16/18 | $76.54 | $6.15 | -$4.25 | -5.1% | 04/20/18 |
| DECK | 02/12/18 | $93.90 | 92.5 | $5.15 | $2.11 | $91.79 | 04/20/18 | $89.00 | $3.50 | -$4.44 | -4.7% | 04/20/18 |
| NOW | 02/19/18 | $154.18 | 155.0 | $7.40 | -$0.55 | $154.73 | 05/18/18 | $173.94 | $0.00 | $11.81 | 7.7% | 04/20/18 |
| WDAY | 02/19/18 | $125.25 | 125.0 | $7.53 | -$1.81 | $127.06 | 05/04/18 | $130.05 | $0.00 | -$4.54 | -3.6% | 04/20/18 |
| JPM | 02/26/18 | $117.90 | 120.0 | $5.10 | -$3.54 | $121.44 | 03/23/18 | $107.01 | $13.60 | -$5.93 | -5.0% | 04/20/18 |
| SWKS | 03/05/18 | $109.14 | 110.0 | $6.70 | -$4.32 | $113.46 | 04/06/18 | $95.56 | $14.70 | -$9.90 | -9.1% | 05/18/18 |
| ATHN | 03/26/18 | $139.00 | 140.0 | $6.70 | $3.03 | $135.97 | 04/20/18 | $146.07 | $5.80 | $9.20 | 6.6% | 06/15/18 |
| AMT | 04/02/18 | $146.40 | 145.0 | $4.18 | -$2.44 | $148.84 | 04/13/18 | $138.90 | $7.30 | -$6.82 | -4.7% | 05/18/18 |
| TLT | 04/09/18 | $120.67 | 120.0 | $2.47 | $0.53 | $120.14 | 05/18/18 | $117.21 | $2.79 | -$2.61 | -2.2% | 05/18/18 |
| PG | 04/16/18 | $78.28 | 77.5 | $2.70 | -$1.17 | $79.45 | 05/04/18 | $72.43 | $5.75 | -$3.97 | -5.1% | 07/20/18 |
| MSFT | 04/23/18 | $95.36 | 95.0 | $4.45 | $0.39 | $94.97 | 01/00/00 | $98.61 | $3.64 | 3.8% | 07/20/18 | |
| CVX | 04/23/18 | $122.40 | 120.0 | $4.00 | $0.08 | $122.32 | $126.43 | $4.11 | 3.4% | 07/20/18 | ||
| MCD | 04/30/18 | $166.00 | 165.0 | $4.65 | -$3.35 | $169.35 | 06/29/18 | $156.69 | $8.40 | -$8.91 | -5.4% | 07/20/18 |
| XLE | 05/07/18 | $75.33 | 75.0 | $2.43 | $0.99 | $74.34 | $75.94 | $1.60 | 2.1% | 07/20/18 | ||
| ALXN | 05/07/18 | $117.46 | 115.0 | $5.90 | $0.42 | $117.04 | 05/25/18 | $117.74 | $7.35 | $2.15 | 1.8% | 07/20/18 |
| LULU | 05/14/18 | $98.68 | 100.0 | $8.45 | $0.97 | $97.71 | $124.85 | $27.14 | 27.5% | 09/21/18 | ||
| HSY | 05/21/18 | $92.50 | 95.0 | $5.30 | $0.81 | $91.69 | $93.06 | $1.37 | 1.5% | 08/17/18 | ||
| PYPL | 05/21/18 | $81.35 | 82.5 | $4.85 | $1.23 | $80.12 | $83.27 | $3.15 | 3.9% | 08/17/18 | ||
| SWKS | 05/29/18 | $100.02 | 100.0 | $5.30 | $0.00 | $100.02 | $96.65 | -$3.37 | -3.4% | 08/17/18 | ||
| UTX | 05/29/18 | $126.48 | 125.0 | $3.50 | -$0.06 | $126.54 | $125.03 | -$1.51 | -1.2% | 08/17/18 | ||
| PEP | 06/04/18 | $100.31 | 100.0 | $2.50 | $1.68 | $98.63 | $108.87 | $10.24 | 10.2% | 08/17/18 | ||
| V | 06/11/18 | $134.54 | 135.0 | $4.90 | $1.08 | $133.46 | $132.45 | -$1.01 | -0.8% | 09/21/18 | ||
| LOW | 07/02/18 | $94.17 | 94.0 | $5.28 | $0.33 | $93.84 | $94.17 | $0.33 | 0.4% | |||