Weekly Wrap!

Submitted By Andy Wang

The market finished another volatile options expiration week. The financials made new lows while the fertilizers and coals made new highs. The Dow ended the week below 12,000, at 11842.69, down 474.66 points; SPX closed below 1320, at 1317.93, down 42.1 points; Nasdaq managed to stay above 2400, at 2406.09, down 48.41 points.

However, considering how the market conditions were, we did very well:
FXP ($83.6)
FXJGQ, July 85 calls, at $6.4, +6.7%

MEE ($92)
MEEGQ, July 85 calls, at $11.2, +24.4%

GOOG ($555)
GOOGT, July 600 calls, at $10.1, -30.3% (all out)

FCX ($124.26)
FCXGY, July 120 calls, at $10.5, +7.1% (partially out)

STLD ($40.66)
RQLGG, July 35 calls, at $6.3, +23.5%

FSLR ($285)
HJQGA, July 300 calls, at $16, +41.6% (all out)

MON ($143.3)
MFPGH, July 140 calls, at $10, +25%

GOOG ($578)
GOOGT, July 600 calls, at $17.6, +21.3% (more out)

FSLR ($278)
HJQGA, July 300 calls, at $13.2, +16.8% (more out)

Besides the partial GOOG trade, we’re 100% GR$$N on the closed trades; and, we’ve taken most profits off the table on that one. So, lots of blessings. I was being very careful, maybe too careful… Would have been nice to have held on to MEE from couple of weeks ago. (Then, there’s RIMM, ENER, CF…). But, all-in-all, pretty good.

What we’ve noticed is that, recently, although the overall market has been weak, there have been pockets of sustainable strength. We’ve been very careful because of the overall market conditions. In a more bullish market environment, we probably would have felt more comfortable holding on to some of those winning trades longer and capture much bigger gains. In any case, we certainly cannot complain about taking profits. However, I’m going to look over some of my own trades this weekend and try to adapt more to the market and perhaps capture bigger gains.

The only trade left open this week is:
FLR ($192.35)
FLRGW, July 190 calls, at $9.8 (open)
Friday close: $9.4; unrealized gain/loss: -4.1%

It is “extremely hot” in California this weekend! I’m trying to stay inside in a restaurant, a theater, at home, or maybe at the mall? wherever there’s AC! I’ll be back tomorrow with my Market Forecast. Enjoy your weekend and stay cool!