The following are this week’s Low Cost Put Hedge Selections and the results for the previous week’s Open Positions. Each week, if conditions warrant one or more new stock positions are added to the Open Positions list. These stocks have a Bullish 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 from Bullish. To access The Low Cost Put Hedge informative booklet click on the Get The Booklet tab located on the home page or at the bottom of this page.
This Week’s Low Cost Put-Call Hedge Selections
There is one new selections this week: EW
| Market Edge Opinion: The current technical condition for EW is strong and the chart pattern suggests that upward momentum should continue. 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. Upside momentum, as measured by the 9-day RSI indictor is beginning to show signs of strength. Over the last 50 trading sessions, there has been more volume on up days than on down days indicating that EW 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 EW. 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–> | 13.37 | 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 | 12 | $101.31 | 101.0 | 100.0 | $0.31 | 07/20/18 | 95.0 | $4.45 | None | $0.00 |
| CVX | 12 | $124.79 | 125.0 | 124.0 | $0.43 | 07/20/18 | 120.0 | $4.40 | 05/17/18 | $1.12 |
| XLE | 10 | $76.17 | 76.0 | 75.0 | $0.30 | 07/20/18 | 175.0 | $2.43 | None | $0.00 |
| LULU | 9 | $126.09 | 126.0 | 125.0 | $0.43 | 09/21/18 | 100.0 | $8.45 | None | $0.00 |
| HSY | 8 | $94.96 | 95.0 | 94.0 | $0.39 | 08/17/18 | 95.0 | $5.30 | None | $0.00 |
| PYPL | 8 | $85.51 | 85.5 | 84.5 | $0.38 | 08/17/18 | 82.5 | $4.85 | None | $0.00 |
| SWKS | 7 | $99.78 | 100.0 | 99.0 | $0.42 | 08/17/18 | 100.0 | $5.30 | None | $0.00 |
| UTX | 7 | $126.05 | 126.0 | 125.0 | $0.34 | 08/17/18 | 125.0 | $3.50 | None | $0.00 |
| PEP | 6 | $108.41 | 108.0 | 107.0 | $0.40 | 08/17/18 | 100.0 | $2.50 | None | $0.00 |
| V | 5 | $135.18 | 135.0 | 134.0 | $0.44 | 09/21/18 | 135.0 | $4.90 | None | $0.00 |
| LOW | 2 | $96.92 | 96.5 | 95.5 | $0.37 | 10/19/18 | 95.0 | $5.28 | 07/24/18 | $0.48 |
| EA | 1 | $146.47 | 147.0 | 146.0 | $0.55 | 11/16/18 | 145.0 | $8.60 | 07/24/18 | $0.48 |
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. A * before the stock symbol indicates a short sale. 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: | 07/06/18 | 2759.82 | Close Credit – Anchor Open Debit) When The Position Is Closed | |||||||||
| S&P Points Gain/Loss: | -113.05 | |||||||||||
| S&P % Gain/Loss: | -3.9% | 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: | $2,358 | The Short Put Strike Price | ||||||||||
| Hedge Total % Return: | 2.4% | |||||||||||
| # Of Weeks: | 20 | 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: | 48.4% | |||||||||||
| 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 | $0.70 | $94.66 | 01/00/00 | $101.16 | $6.50 | 6.8% | 07/20/18 | |
| CVX | 04/23/18 | $122.40 | 120.0 | $4.00 | $0.51 | $121.89 | $124.14 | $2.25 | 1.8% | 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 | $1.29 | $74.04 | $75.67 | $1.63 | 2.2% | 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 | $1.40 | $97.28 | $128.54 | $31.26 | 31.7% | 09/21/18 | ||
| HSY | 05/21/18 | $92.50 | 95.0 | $5.30 | $1.20 | $91.30 | $95.55 | $4.25 | 4.6% | 08/17/18 | ||
| PYPL | 05/21/18 | $81.35 | 82.5 | $4.85 | $1.61 | $79.74 | $85.94 | $6.20 | 7.6% | 08/17/18 | ||
| SWKS | 05/29/18 | $100.02 | 100.0 | $5.30 | $0.42 | $99.60 | $100.13 | $0.53 | 0.5% | 08/17/18 | ||
| UTX | 05/29/18 | $126.48 | 125.0 | $3.50 | $0.28 | $126.20 | $125.40 | -$0.80 | -0.6% | 08/17/18 | ||
| PEP | 06/04/18 | $100.31 | 100.0 | $2.50 | $2.08 | $98.23 | $109.56 | $11.33 | 11.3% | 08/17/18 | ||
| V | 06/11/18 | $134.54 | 135.0 | $4.90 | $1.52 | $133.02 | $134.09 | $1.07 | 0.8% | 09/21/18 | ||
| LOW | 07/02/18 | $94.17 | 94.0 | $5.28 | $0.70 | $93.47 | $96.14 | $2.67 | 2.8% | 10/19/18 | ||
| EW | 07/09/18 | $146.47 | 145.0 | $8.60 | $0.55 | $145.92 | $146.47 | $0.55 | 0.4% | |||