The following are this week’s Low Cost Put Hedge Selections and the results for the previous week’s Open transactions. Each week, if conditions warrant one or more new stock position is added to the Open Positions list. These stocks have a Long technical Opinion from Market Edge. The stocks and option spreads are added to the portfolio based on Monday’s opening prices. The stocks are removed from the portfolio after twelve weeks or if the Market Edge Opinion is downgraded. To access The Low Cost Put Hedge informative booklet click on the Get The Book tab located on the home page or on the Download button located above.
This Week’s Low Cost Put Hedge New Selections
There is one new selections this week – LULU
| Market Edge Opinion:
|
Current Open Selections
| Market Posture: | Bullish | VIX–> | 12.65 | Bearish | ||||||
| Prices Are Monday’s Opening Prices | ||||||||||
| # 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 |
| NOW | 11 | $173.49 | 175.0 | 170.0 | $2.60 | 04/20/18 | 155.0 | $7.40 | None | $0.00 |
| TLT | 6 | $118.93 | 119.0 | 118.0 | $0.32 | 07/20/18 | 120.0 | $2.47 | None | $0.00 |
| MSFT | 4 | $96.16 | 96.0 | 94.5 | $0.47 | 07/20/18 | 95.0 | $4.45 | None | $0.00 |
| CVX | 4 | $127.96 | 128.0 | 126.0 | $0.70 | 07/20/18 | 120.0 | $4.40 | 05/17/18 | $1.12 |
| MCD | 3 | $166.58 | 167.5 | 165.0 | $1.10 | 07/20/18 | 165.0 | $4.65 | None | $0.00 |
| XLE | 2 | $75.33 | 75.5 | 74.0 | $0.52 | 07/20/18 | 175.0 | $2.43 | None | $0.00 |
| ALXN | 2 | $117.46 | 118.0 | 116.0 | $0.82 | 07/20/18 | 115.0 | $5.90 | None | $0.00 |
| LULU | 1 | $98.65 | 98.5 | 97.5 | $0.40 | 09/21/18 | 100.0 | $8.45 | None | $0.00 |
Model Portfolio – Track Record
The performance figures for the Model Portfolio are based on a hypothetical bank roll of $100,000. Dividends and transaction costs are not included in the calculations. The anchor put debit/credits are included in the results once the position is closed.
| S&P: | 01/26/18 | 2872.87 | Dollar Profit / Loss = Stock Price Friday- Adjusted Stock Price | ||||||||||
| S&P: | 05/15/18 | 2727.72 | |||||||||||
| S&P Points Gain/Loss: | -145.15 | Adjusted Stock Price = Open Stock Price – Total Spread Credits + Total | |||||||||||
| S&P % Gain/Loss: | -5.1% | Spread Loss | |||||||||||
| Risk Capital: | $100,000 | Total Spread Credits = WK #1 – WK #12 Credits | |||||||||||
| Put Hedge Total P/L: | -$521 | ||||||||||||
| Hedge Total % Return: | -0.5% | Total Spread Loss = WK #1 – WK#12 Spread Losses | |||||||||||
| # Of Weeks: | 8 | ||||||||||||
| Hedge To S&P P/L Ratio: | 10.0 | : 1 | *Spread Losses Occur When The Stock Price Friday Closes Below The Short | ||||||||||
| Win % – Adjusted Prices: | 39.1% | Put Strike Price | |||||||||||
| *Transaction Costs & Dividends Not Included | |||||||||||||
| *Anchor Put – Debit/Credits Included In P/L Calculations When Positions Are Closed | |||||||||||||
| Open | Open | Anchor | Anchor | Total | Total | Adjust | Close | Stock | Anchor | Dollar | % | Anchor | |
| Date | Stock | Put | Open | Spread | Spread | Stock | Date | Price | Close | Profit | Profit | Exp | |
| Stock | Monday | Price | Strike | Debit | Credits | Loss | Price | Friday | Friday | Credit | Loss | Loss | Date |
| CELG | 01/29/18 | $105.23 | 105.0 | $5.50 | $1.41 | -$2.00 | $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 | $4.21 | -$6.39 | $90.00 | 04/06/18 | $73.41 | $14.27 | -$6.82 | -7.8% | 04/20/18 |
| SLB | 01/29/18 | $77.18 | 77.0 | $1.72 | $1.52 | -$3.22 | $78.88 | 02/16/18 | $66.28 | $10.20 | -$4.12 | -5.3% | 04/20/18 |
| EA | 01/29/18 | $116.12 | 115.0 | $4.60 | $5.96 | -$6.00 | $116.16 | 04/20/18 | $120.89 | $0.00 | $0.13 | 0.1% | 04/20/18 |
| ADSK | 01/29/18 | $117.84 | 115.0 | $5.80 | $9.65 | -$10.91 | $119.10 | 05/11/18 | $136.21 | $0.00 | $11.31 | 9.6% | 04/20/18 |
| WDC | 01/29/18 | $89.33 | 90.0 | $5.50 | $5.55 | -$9.48 | $93.26 | 05/04/18 | $77.28 | $12.75 | -$8.73 | -9.8% | 05/25/18 |
| PEP | 02/05/18 | $118.24 | 120.0 | $4.35 | $0.88 | -$2.00 | $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 | $1.25 | -$2.46 | $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 | $4.65 | -$1.12 | $90.37 | 04/20/18 | $89.00 | $3.50 | -$3.02 | -3.2% | 04/20/18 |
| NOW | 02/19/18 | $154.18 | 155.0 | $7.40 | $14.96 | -$11.28 | $150.50 | $178.87 | $28.37 | 18.4% | 04/20/18 | ||
| WDAY | 02/19/18 | $125.25 | 125.0 | $7.53 | $5.84 | -$8.00 | $127.41 | 05/04/18 | $130.05 | $0.00 | -$4.89 | -3.9% | 04/20/18 |
| JPM | 02/26/18 | $117.90 | 120.0 | $5.10 | $2.07 | -$3.00 | $118.83 | 03/23/18 | $107.01 | $13.60 | -$3.32 | -2.8% | 04/20/18 |
| SWKS | 03/05/18 | $109.14 | 110.0 | $6.70 | $1.98 | -$4.00 | $111.16 | 04/06/18 | $95.56 | $14.70 | -$7.60 | -7.0% | 05/18/18 |
| ATHN | 03/26/18 | $139.00 | 140.0 | $6.70 | $4.10 | -$2.00 | $136.90 | 04/20/18 | $146.07 | $5.80 | $8.27 | 5.9% | 06/15/18 |
| AMT | 04/02/18 | $146.40 | 145.0 | $4.18 | $1.56 | -$4.00 | $148.84 | 04/13/18 | $138.90 | $7.30 | -$6.82 | -4.7% | 05/18/18 |
| TLT | 04/09/18 | $120.67 | 145.0 | $2.47 | $2.32 | -$2.00 | $120.35 | $119.23 | -$1.12 | -0.9% | 05/18/18 | ||
| PG | 04/16/18 | $78.28 | 77.5 | $2.70 | $1.60 | -$2.76 | $79.44 | 05/04/18 | $72.43 | $5.75 | -$3.96 | -5.1% | 07/20/18 |
| MSFT | 04/23/18 | $95.36 | 95.0 | $4.45 | $2.14 | -$0.84 | $94.06 | $97.70 | $3.64 | 3.8% | 07/20/18 | ||
| CVX | 04/23/18 | $122.40 | 120.0 | $4.00 | $2.59 | -$1.47 | $121.28 | $129.84 | $8.56 | 7.0% | 07/20/18 | ||
| MCD | 04/30/18 | $166.00 | 165.0 | $4.65 | $3.68 | -$4.58 | $166.90 | $165.39 | -$1.51 | -0.9% | 07/20/18 | ||
| XLE | 05/07/18 | $75.33 | 75.0 | $2.43 | $0.90 | $0.00 | $74.43 | $76.73 | $2.30 | 3.1% | 07/20/18 | ||
| ALXN | 05/07/18 | $117.46 | 115.0 | $5.90 | $1.69 | $0.00 | $115.77 | $119.66 | $3.89 | 3.3% | 07/20/18 | ||
| LULU | 05/14/18 | $98.68 | 100.0 | $8.45 | $0.40 | $0.00 | $98.28 | $98.68 | $0.40 | 0.4% | 09/21/18 | ||