HI Financial Services Commentary 01-17-2017
What are my choices in the stock market because everything I look at seems to be the same and now it is 2017?
This is the question I’ve gotten since November of last year. What do you think is the correct response?
Of course, I’m going to do the same thing. Because I have experience and know how well it works
There better way to create wealth than by picking up shares as stocks fall in value.
Basis collar trade structure is
BTO Stock @ $100
BTO ATM Long puts 60 days after earnings (45 – 75 days range)
STO 3 -4 strike higher short calls (45-90 days)
Thought less than 3.5% Total invested capital risk for the earnings play
I don’t like to cap the upside
Looking for 4 rewards per 1 risk
If we have really bad earnings = I run out to a leap short call for a huge credit because I want a negative delta effect
Looking to adjust the short call and long put around a support level willing to add long puts again immediately if support doesn’t hold
Trading is a process You get just as excited to see stocks fall as you do to see them go up
What’s happening this week and why?
Holding pattern until China numbers on Thursday and Presidential – Trump in on Friday
Where will our market end this week?
DJIA – Still technically bullish but consolidated
SPX – Technically Bullish still
COMP – Bullish with a stair step pattern
Where Will the SPX end Jan 2017?
01-17-2017 -5.0 %
What is on tap for the rest of the week?=
Tues: CSX, IBKR, MS, UNH
Wed: SCHW, C, FAST, GS, KMI, NFLX, USB
Thur: ALK, FUL, IBM, UNP
Tues: Empire Manu
Wed: MBA, Crude, CPI, Core CPI, NAHB Housing Market Index, Industrial Production, Capacity Utilization, Fed Beige Book
Thur: Initial, Continuing Claims, Housing Starts, Building Permits, Phil Fed
Fri: OPTIONS EXPIRATION
Thursday – ECB Announcement, CN: GDP, Industrial Production, Retails Sales
Friday – U.S. Presidential Inauguration 2017
Sunday – JP: All Industry Index
How I am looking to trade?
I’m basically collared with – DIS, NFLX, BIDU, F would be my big upside surprise Stocks
AAPL 01/31 AMC
BABA 01/24 BMO
BAC 01/13 BMO BEAT EARNINGS
BIDU 02/23 est
C 01/18 BMO
DIS 02/07 est
F 01/26 est
FB 02/01 AMC
NVDA 02/15 est
AOBC 03/02 est
V 02/02 AMC
ZION 01/23 AMC
DHI 01/24 BMO
NFLX 01/18 AMC
Non – Earnings ETF’s
Core portfolio components = AAPL, AOBC, BIDU, DIS, V, F, FB, NVDA, BAC, C, CLX, NFLX, MS
750 K or higher = AAPL, BIDU, V, DIS, FB, MS
250K to 750 K = DIS, BIDU, AAPL, V, C, DHI
and looking to move out of AAPL in FB
250K or Less – F, NVDA, SNDK, BAC, ZION, XLF, XLRE,
www.myhurleyinvestment.com = Blogsite