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 Week’s Low Cost Put Hedge New Selections
There is one new selections this week: V
| Market Edge Opinion: The technical condition of the V is strong. The chart pattern suggests that upward momentum should continue and the stock is positioned for higher prices. The stock has outperformed the market over the last 50 trading days when compared to the S&P 500. MACD-LT, an intermediate-term trend indicator, is bullish at this time. Upside momentum, as measured by the 9-day RSI indicator is positive but is beginning to slow. The stock is in a short-term overbought condition based on a Slow % K stochastic reading of 80 or higher. Over the last 50 trading sessions, there has been more volume on up days than on down days indicating that V 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 V. The stock is above its 200-day moving average which is pointed up indicating that the intermediate term trend is bullish.
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Current Open Positions
| Market Posture: | Bullish | VIX–> | 12.18 | 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 |
| MSFT | 8 | $100.95 | 101.0 | 100.0 | $0.38 | 07/20/18 | 95.0 | $4.45 | None | $0.00 |
| CVX | 8 | $126.02 | 125.0 | 124.0 | $0.41 | 07/20/18 | 120.0 | $4.40 | 05/17/18 | $1.12 |
| MCD | 7 | $166.92 | 160.0 | 157.5 | $0.68 | 07/20/18 | 165.0 | $4.65 | 06/01/18 | $1.01 |
| XLE | 6 | $76.89 | 77.5 | 76.0 | $0.68 | 07/20/18 | 175.0 | $2.43 | None | $0.00 |
| LULU | 5 | $120.64 | 125.0 | 123.0 | $0.92 | 09/21/18 | 100.0 | $8.45 | None | $0.00 |
| HSY | 4 | $92.00 | 91.5 | 90.5 | $0.41 | 08/17/18 | 95.0 | $5.30 | None | $0.00 |
| PYPL | 4 | $84.00 | 83.5 | 82.0 | $0.52 | 08/17/18 | 82.5 | $4.85 | None | $0.00 |
| SWKS | 3 | $99.78 | 101.0 | 99.0 | $0.82 | 08/17/18 | 100.0 | $5.30 | None | $0.00 |
| UTX | 3 | $128.00 | 127.0 | 125.0 | $0.77 | 08/17/18 | 125.0 | $3.50 | None | $0.00 |
| PEP | 2 | $102.55 | 101.0 | 99.5 | $0.70 | 08/17/18 | 100.0 | $2.50 | None | $0.00 |
| V | 1 | $134.54 | 134.0 | 133.0 | $0.26 | 09/21/18 | 135.0 | $4.90 | 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 fees 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 + (Anchor | |||||||||
| S&P: | 06/08/18 | 2779.03 | Close Credit – Anchor Open Debit) When The Position Is Closed** | |||||||||
| S&P Points Gain/Loss: | -93.84 | |||||||||||
| S&P % Gain/Loss: | -3.3% | Adjusted Stock Price = Open Stock Price – Total Spread Profit / Loss | ||||||||||
| Risk Capital: | $100,000 | |||||||||||
| Put Hedge Total P/L: | $1,160 | *Spread Losses Occur When The Stock’s Friday Close Is Below | ||||||||||
| Hedge Total % Return: | 1.2% | The Short Put Strike Price | ||||||||||
| # Of Weeks: | 18 | |||||||||||
| Hedge To S&P P/L Ratio: | 4.8 | :1 | **Anchor Put – Debit/Credits Included In P/L Calculations Only When | |||||||||
| Win % – Adjusted Prices: | 48.3% | Positions Are Closed | ||||||||||
| Transaction Costs & Dividends Not Included | ||||||||||||
| 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 | Profit / Loss | 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 | $1.90 | $93.46 | $101.63 | $8.17 | 8.6% | 07/20/18 | ||
| CVX | 04/23/18 | $122.40 | 120.0 | $4.00 | $1.17 | $121.23 | $126.44 | $5.21 | 4.3% | 07/20/18 | ||
| MCD | 04/30/18 | $166.00 | 165.0 | $4.65 | -$1.32 | $167.32 | $168.91 | $1.59 | 1.0% | 07/20/18 | ||
| XLE | 05/07/18 | $75.33 | 75.0 | $2.43 | $1.23 | $74.10 | $76.90 | $2.80 | 3.7% | 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 | $1.32 | $97.36 | $122.02 | $24.66 | 25.0% | 09/21/18 | ||
| HSY | 05/21/18 | $92.50 | 95.0 | $5.30 | $0.93 | $91.57 | $91.77 | $0.20 | 0.2% | 08/17/18 | ||
| PYPL | 05/21/18 | $81.35 | 82.5 | $4.85 | $1.01 | $80.34 | $84.34 | $4.00 | 4.9% | 08/17/18 | ||
| SWKS | 05/29/18 | $100.02 | 100.0 | $5.30 | $0.56 | $99.46 | $99.81 | $0.35 | 0.3% | 08/17/18 | ||
| UTX | 05/29/18 | $126.48 | 125.0 | $3.50 | $0.02 | $126.46 | $122.61 | -$3.85 | -3.0% | 08/17/18 | ||
| PEP | 06/04/18 | $100.31 | 100.0 | $2.50 | $0.96 | $99.35 | $102.49 | $3.14 | 3.1% | 08/17/18 | ||
| V | 06/11/18 | $134.54 | $4.90 | $0.28 | $134.26 | $134.54 | $0.28 | 0.2% | 09/21/18 | |||