The following are this week’s Low Cost Put Hedge Candidates. The actual Selections will be posted on Monday around 11:00 AM EST. It should be noted that depending on market conditions, not all of these candidates will be listed as selections.
This Weeks Low Cost Put Hedge Candidates
| Bullish Candidates | ||||||
| Open | Approximate | Market Edge | ||||
| Stock | Date | Stock Price | Opinion | Transaction Type | Div Date | Div $ Amt |
| EA | 04/09/18 | $113.00 | Bullish | Long ATM -1 Put – Short ATM Put – Long ATM Anchor Put | None | |
| ADSK | 04/09/18 | $113.00 | Bullish | Long ATM -1 Put – Short ATM Put – Long ATM Anchor Put | None | |
| WDC | 04/09/18 | $111.00 | Bullish | Long ATM -1 Put – Short ATM Put – Long ATM Anchor Put | None | |
| DECK | 04/09/18 | $34.00 | Bullish | Long ATM -1 Put – Short ATM Put – Long ATM Anchor Put | None | |
| NOW | 04/09/18 | $45.00 | Bullish | Long ATM -1 Put – Short ATM Put – Long ATM Anchor Put | None | |
| WDAY | 04/09/18 | $34.00 | Bullish | Long ATM -1 Put – Short ATM Put – Long ATM Anchor Put | None | |
| ATHN | 04/09/18 | $34.00 | Bullish | Long ATM -1 Put – Short ATM Put – Long ATM Anchor Put | None | |
| AMT | 04/09/18 | $34.00 | Bullish | Long ATM -1 Put – Short ATM Put – Long ATM Anchor Put | 04/10/18 | $0.75 |
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 – TLT..
| Market Edge Opinion: TLT
Though the technical outlook remains somewhat mixed there are signs that point to an improved outlook for the stock. Several of the pertinent indicators have turned positive and the stock appears to be under accumulation. Should the stock break above recent resistance numbers it could mark the beginning of a new uptrend. The stock is outperforming the market when compared to the S&P 500 over the last 50 trading days. The MACD-LT, an intermediate-term trend indicator, is bullish at this time. A close above $119.93 is a number to watch to confirm a trend reversal. Momentum as measured by the 9-day RSI is positive but showing signs of slowing. Over the last 50 trading sessions, there has been more volume on up days than on down days indicating that TLT is under accumulation, which is a bullish condition. The stock is above its 50-day moving average which is pointed down. This is supportive that the trend is improving.
|
Current Open Selections
| Market Posture: | Bearish | VIX–> | 19.97 | Bearish | ||||||
| Prices Are Monday’s Opening Prices | ||||||||||
| Weeks | Stock | Short Put | Long Put | Credit | Anchor Put | Anchor Put | Anchor Put | Approx | Approx | |
| Stock | In Play | Price | Strike | Strike | Spread | Ex. Date | Strike | Debit | Div Date | Dividend |
| EA | 9 | $119.00 | 119.0 | 117.0 | $0.85 | 03/16/18 | 115.0 | $4.60 | None | $0.00 |
| ADSK | 9 | $126.86 | 127.0 | 125.0 | $0.83 | 04/20/18 | 115.0 | $5.80 | None | $0.00 |
| WDC | 9 | $89.04 | 89.0 | 87.5 | $0.60 | 04/20/18 | 90.0 | $5.50 | 03/28/18 | $0.50 |
| DECK | 7 | $92.86 | 93.0 | 91.0 | $0.55 | 04/20/18 | 92.5 | $5.15 | None | $0.00 |
| NOW | 6 | $164.47 | 165.0 | 160.0 | $1.93 | 04/20/18 | 155.0 | $7.40 | None | $0.00 |
| WDAY | 6 | $124.05 | 124.0 | 122.0 | $0.80 | 04/20/18 | 125.0 | $7.53 | None | $0.00 |
| ATHN | 3 | $139.29 | 139.0 | 137.0 | $0.71 | 06/15/18 | 140.0 | $9.60 | None | $0.00 |
| AMT | 2 | $142.97 | 143.0 | 141.0 | $0.93 | 06/15/18 | 140.0 | $9.60 | None | $0.00 |
| TLT | 1 | $120.67 | 121.0 | 120.0 | $0.44 | 07/20/18 | 120.0 | $2.47 | 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 | |||||||||||||
| S&P: | 04/06/18 | 2604.11 | |||||||||||||
| S&P Points Gain/Loss: | -268.76 | ||||||||||||||
| S&P % Gain/Loss: | -9.4% | ||||||||||||||
| Risk Capital: | $100,000 | ||||||||||||||
| Put Hedge Total P/L: | -$3,526 | ||||||||||||||
| Hedge Total % Return: | -3.5% | ||||||||||||||
| # Of Weeks: | 9 | ||||||||||||||
| Hedge To S&P P/L Ratio: | 3.0 | To 1 | |||||||||||||
| Win % – Adjusted Prices: | 31.3% | ||||||||||||||
| *Transaction Costs & Dividends Not Included | |||||||||||||||
| *Anchor Put – Debit/Credits Only Included In P/L Calculations When Positions Are Closed | |||||||||||||||
| Credit | Credit | Credit | |||||||||||||
| Wk #1 | Wk #5 | Wk #9 | Anchor | Anchor | Anchor | ||||||||||
| Open | Open | Wk #2 | Wk #6 | Wk #10 | Anchor | Put | Total | Adjust | Close | Stock | Put | Dollar | % | Put | |
| Date | Stock | Wk #3 | Wk #7 | Wk #11 | Put | Open | Spread | Stock | Date | Price | Close | Profit | Profit | Exp | |
| Stock | Monday | Price | Wk #4 | Wk #8 | Wk #12 | Strike | Debit | Loss | Price | Friday | Friday | Credit | Loss | Loss | Date |
| CELG | 01/29/18 | $105.23 | $0.41 | Closed | 105.0 | $5.50 | -$2.00 | $105.82 | 02/16/18 | $95.26 | $10.40 | -$5.66 | -5.4% | 04/20/18 | |
| $0.40 | |||||||||||||||
| $0.60 | |||||||||||||||
| GILD | 01/29/18 | $87.82 | $0.64 | $0.62 | 87.5 | $4.50 | -$6.39 | $90.00 | 04/06/18 | $73.41 | $14.27 | -$6.82 | -7.8% | 04/20/18 | |
| $0.65 | $0.70 | ||||||||||||||
| $0.59 | $0.51 | ||||||||||||||
| $0.50 | Closed | ||||||||||||||
| SLB | 01/29/18 | $77.18 | $0.38 | Closed | 77.0 | $1.72 | -$3.22 | $78.88 | 02/16/18 | $66.28 | $10.20 | -$4.12 | -5.3% | 04/20/18 | |
| $0.55 | |||||||||||||||
| $0.59 | |||||||||||||||
| EA | 01/29/18 | $116.12 | $0.50 | $0.39 | 115.0 | $4.60 | -$6.00 | $117.06 | $118.36 | $1.30 | 1.1% | 03/16/18 | |||
| $0.40 | $0.99 | ||||||||||||||
| $0.81 | $0.73 | ||||||||||||||
| $0.39 | $0.85 | ||||||||||||||
| ADSK | 01/29/18 | $117.84 | $0.79 | $0.90 | 115.0 | $5.80 | -$8.00 | $119.26 | $125.75 | $6.49 | 5.5% | 04/20/18 | |||
| $0.78 | $1.05 | ||||||||||||||
| $0.78 | $0.88 | ||||||||||||||
| $0.57 | $0.83 | ||||||||||||||
| WDC | 01/29/18 | $89.33 | $0.45 | $0.40 | 90.0 | $5.50 | -$7.50 | $92.81 | $87.77 | -$5.04 | -5.6% | 04/20/18 | |||
| $0.42 | 0.65 | ||||||||||||||
| $0.40 | 0.68 | ||||||||||||||
| $0.42 | 0.60 | ||||||||||||||
| PEP | 02/05/18 | $118.24 | $0.88 | Closed | 120.0 | $4.35 | -$2.00 | $119.36 | 02/09/18 | $111.18 | $7.35 | -$5.18 | -4.4% | 04/20/18 | |
| XOM | 02/05/18 | $82.98 | $0.87 | Closed | 82.5 | $2.75 | -$2.46 | $84.19 | 02/16/18 | $76.54 | $6.15 | -$4.25 | -5.1% | 04/20/18 | |
| $0.38 | |||||||||||||||
| DECK | 02/12/18 | $93.90 | $0.63 | $0.62 | 92.5 | $5.15 | -$1.12 | $89.60 | $91.92 | $2.32 | 2.5% | 04/20/18 | |||
| $0.82 | $0.55 | ||||||||||||||
| $0.42 | |||||||||||||||
| $0.75 | |||||||||||||||
| NOW | 02/19/18 | $154.18 | $0.56 | $1.07 | 155.0 | $7.40 | -$7.06 | $153.48 | $162.94 | $9.46 | 6.1% | 04/20/18 | |||
| $1.90 | $1.93 | ||||||||||||||
| $1.30 | |||||||||||||||
| $1.00 | |||||||||||||||
| WDAY | 02/19/18 | $125.25 | $0.61 | $0.72 | 125.0 | $7.53 | -$8.00 | $128.97 | $122.58 | -$6.39 | -5.1% | 04/20/18 | |||
| $0.45 | 0.8 | ||||||||||||||
| $0.65 | |||||||||||||||
| $1.05 | |||||||||||||||
| JPM | 02/26/18 | $117.90 | $0.70 | Closed | 120.0 | $5.10 | -$3.00 | $118.83 | 03/23/18 | $107.01 | $13.60 | -$3.32 | -2.8% | 04/20/18 | |
| $0.63 | |||||||||||||||
| $0.74 | |||||||||||||||
| SWKS | 03/05/18 | $109.14 | $0.67 | Closed | 110.0 | $6.70 | -$5.50 | $112.66 | 04/06/18 | $95.56 | $14.70 | -$9.10 | -8.3% | 05/18/18 | |
| $0.67 | |||||||||||||||
| $0.64 | |||||||||||||||
| ATHN | 03/26/18 | $139.00 | $0.80 | 140.0 | $6.70 | -$2.00 | $139.49 | $138.78 | -$0.71 | -0.5% | 06/15/18 | ||||
| $0.71 | |||||||||||||||
| AMT | 04/02/18 | $146.40 | $0.63 | 145.0 | $4.18 | -$2.00 | $146.84 | $142.16 | -$4.68 | -3.2% | 05/18/18 | ||||
| 0.93 | |||||||||||||||
| TLT | 04/09/18 | $120.67 | $0.44 | 145.0 | $2.47 | $0.00 | $120.23 | $120.67 | $0.44 | 0.4% | 05/18/18 | ||||