Register New User RegistrationChoose a Username*First NameLast NameEmail*CELLPHONE (optional: For Premium Trading Alert Subscribers)How Did you Hear About LEAPtoProfit?<---- Select One ---->FacebookFriendSearch EngineSeeking AlphaTwitterOtherPreference: (For Premium Trading Alert Subscribers)<---- Select One ---->Text Message AlertE-mail AlertGet notifications via emailYour notificationsArticlesBlogsDaily Market UpdateReprintsTradesWeek in ReviewWeekend UpdateWeekly Prospects<span style="font-family: arial5151); line-height: 26px; font-family: verdana; font-size: 15.55px; vertical-align: baseline;"><span style="font-family: arialAAAAPLAAPL APOL BBBY DE DOW EMC KSS LOW MU and SBGIABBVAbercrombie and FitchABTADBEADSKAETAGNAGQAIGALGNalong with others in the for-profit education business. Having Bill Ackman place you in his cross-hairs isn't necessarily good for your share's healthalthough I would prefer to be out of the positionalthough I would still consider the possibility of rolling over putsalthough there are still those that worry about deflationALTRAmazonAMGNAMZNand WMBANFAOLAPAAPCAPKTAPOLApple shares will be less likely to reflect fervor that enhances risk and reward. For meApple would become a better trading vehicle as it settled into that phase of its corporate identity that no longer scoffed at dividendsare a little different. The real excitement comes during the climb higheras expanded weekly options are available.<span style="font-family: arialas it is frequently moved by its more volatile progenyas long as its job is not to stay for prolonged times at elevated or depressed levels. While that may describe the worst rollercoaster ever designedas lots of assignments were my fate.<span style="font-family: arialas well. But at least most everyone is agreed that interest rates have more than just mere relevance.<span style="font-family: arialat the current price I think it's time to add additional shares and perhaps make use of some of the expanded option opportunities.<span style="font-family: arialATVIAXPAZNBABABABACBASFYBAXBBBYBBRYBBYBCSbecause sooner or later we all know that it is the end result of a whirring economy and if that is the goal then there has to be some acceptance of inflation's return.<span style="font-familBed Bath and Beyond (6/25 PM)Bed Bath and Beyond (BBBY) reports earnings this week and its chart isn't the most beautiful of sights to behold.<span style="font-family: arialBed Bath and Beyond is a stock that I wouldn't mind owning if faced with the prospect of assignment of those putsBGCPBHIBHPBIDUBIIBBKBLKBMYBNOBPBRCMBTUbut are also near those one year highs. Both favorites over the past few yearsbut as long as the Federal Reserve keeps adding that track I'm not certain I can see a specific reason why the drop should come at this particular time for either of those stocks. While the share pricbut before we are ready to accept it.<span style="font-family: arialbut EMC has been a steady and reliable performerbut it too goes ex-dividend this week and itbut my guess is that when on the canvass and feeling threatenedbut only as long as you get off of the ride before the actual drop.<span style="font-family: arialbut rather because I had shares of SInclair and had sold options that were expiring this Friday. Mid-week came word that a decision might come as early as Thursday or Friday and that sent shares movinbut selling again got the better of the shares and Sinclair lost its past month of gains.<span style="font-family: arialbuybacks and stock splits.<span style="font-family: arialBWLDBXCCAGCAHCATCCCCLCHKCITCLCLFCLXCMCSACMICoachCOFCOHCOH INTCCOPCOSTCPBCREECRMCRMBCSCOCVCCVSCVXCYDDDEDECKdespite the recent recovery of many momentum stocks.<span style="font-family: arialDFSDGDISDNKNDouble Dip DividendDOWDow Chemical (6/26)DRIduring her press conference that followed the release of the most recent FOMC statement suggested that inflationary signals didn't threaten low interest rates that could only be construed as a green lEBAYEBAY HD KO LO LOW MO MRK MRO PM RAI STX TGT MOS C HFCeither.<span style="font-family: arialELUXYEMCEMC Corp (6/27)<p style="margin: 0px 0px 17px; padding: 0px; outline: 0px; border: 0px currentColor; color: rgb(51FFASTFBFCXFDOFEYEFFIVFLfor now it seems as if the Federal Reserve just keeps adding more and more track to make the ride up more giddy and the ride down more of a "white knuckle" experience.<span style="font-family:GDXGEGFIGGILDGLDGLWGMGMCRGMEGOOGGPROGPSGRPNGSGWWHALHDhe would be impressed. WellhelveticaHFCHLFhoweverHPQHTZHUMI don't know if I want to be on the ride whenever the dove bears her teeth and puts on the brakes. As much as we like Janet Yellen's actions that help to support the market's continued trajectory it mI haven't owned Deere in almost a yearI supposeI tend to prefer those earnings related trades in which shares are already trading with a negative biasI was forced off of many ridesIBMIEPif not assigned.<span style="font-family: arialif purchasedin adjustment to and consideration of market movements. The overriding objective is to create a healthy income strein order to avoid assignmentin the knowledge that they're aligned with investors. Even if that alignment is unintentional it signals favoring investing over saving. That in turn belies a mindset that reduces the role of a defensIncludes:AXPINTCIPis one that I've been waiting upon to shed some of its gains. While its dividend isn't as attractive as some othersis the lack of expanded option availability. I like to have those available in the event that a rollover of the put contracts is necessaryISISISSIit is a perfectly good design for a stock used in a covered option strategy.<span style="font-family: arialit's probably a good idea to stay on the same side as the Federal Reserveits ChairmanJCPJNJJosh Brown asked on Twitter if anyone could find a worse looking chart in the S&P 500 than Coach (COH)JOYJPMJWNKKMIKOKohlsKORSKSSLBLCLEAPSLENLLYLMTLNKDLOLO. LXK KOLogin/RegisterLOWLowesLTDLULULVSLXKMMAMATmay give every indication of being a doveMCDMCPMDLZMDTMETMHFIMHPMicron Technology (6/23 PM)<p style="margin: 0px 0px 17px; padding: 0px; outline: 0px; border: 0px currentColor; color: rgb(51MLNXMOMomentum or "PEE" categories.<span style="font-family: arialMOSmost often coupling a share purchase with call option sales or the sale of covered put contractsMRKMROMSMSFTMUMURNDAQNFLXNKENQNUSOIHOLNOPENORCLOSTKPpare down the profit and look for another roller coaster car.<span style="font-family: arialPBRPCLPCYCPEPPETMPFEPGPHPMPNRAPOTprior to earnings during the early part of the August 2014 option cyclePSXPSXPPXPYPLQCOMQQQRADRDS.ARIGRVBDSsans-serif; font-size: medium;">A few days agosans-serif; font-size: medium;">Apollo Education (APOL) has been beleaguered for a whilesans-serif; font-size: medium;">As Apple (AAPL) gets ready to begin trading its third week following the 7 to 1 splitsans-serif; font-size: medium;">AS earnings season now winds down in preparation for the next one that begins in just two weeks I'm somewhat less inclined to engage in risksans-serif; font-size: medium;">As I suggested at the time of the split announcement that may have been timed with earnings to help deflect closer scrutiny of resultssans-serif; font-size: medium;">As opposed to Micron Technology and Apollo Groupsans-serif; font-size: medium;">As usualsans-serif; font-size: medium;">At some point even a zealous non-engineer can realize that something is missing from the formula that creates the real excitement. The climb higher is only the anticsans-serif; font-size: medium;">By the time the market closed on Friday the decision had yet to be releasedsans-serif; font-size: medium;">Double Dip Dividend: Deere (6/26)sans-serif; font-size: medium;">Either waysans-serif; font-size: medium;">Finallysans-serif; font-size: medium;">For nowsans-serif; font-size: medium;">I don't think Yellen was using the old "Rope-a-dope" strategy to ultimately beat inflationsans-serif; font-size: medium;">I had shares assigned this past week and would consider adding them again despite a small increase in its price in that time. It is currently trading at about the misans-serif; font-size: medium;">I have a lot more money this week after last week's assignments and while still concerned about approaching that point at which a drop seems sooner rather than latersans-serif; font-size: medium;">I haven't owned EMC Corp (EMC) as frequently as Dow Chemical or Deeresans-serif; font-size: medium;">I like that kind of gap between what the market is expecting and the risk level where I may be able to achieve my desired ROI. One negative factorsans-serif; font-size: medium;">I was watching closely not because I had any great interest in the legal basis for any decisionsans-serif; font-size: medium;">Inevitablysans-serif; font-size: medium;">It neither stands out at the upper nor lower ends of the consumer spectrum and sees little reason to bring too much attention for itself as it is very comfortable besans-serif; font-size: medium;">It was exciting going up and I can get back on. There's always another ride coming along and maybe even one that will come at a discount on the ride down.<span stsans-serif; font-size: medium;">Janet Yellensans-serif; font-size: medium;">Kohls (KSS) is to me an ideal kind of stock. It just muddles along and has some occasional earnings surprises that propel shares higher or lower only to see it somesans-serif; font-size: medium;">Lowes (LOW) is another stock that just seems to do its jobsans-serif; font-size: medium;">Maybe that's one of the reasons I like a covered option strategy. On days like this past Fridaysans-serif; font-size: medium;">Micron Technology (MU) also reports earnings this week and a look at its chart makes you believe that it may be ready for a rest.<span style="font-family: arsans-serif; font-size: medium;">Momentum: none<p style="margin: 0px 0px 17px; padding: 0px; outline: 0px; border: 0px currentColor; color: rgb(51sans-serif; font-size: medium;">On the meantimesans-serif; font-size: medium;">Premiums Enhanced by Earnings: Apollo Education Group (6/25 AM)sans-serif; font-size: medium;">Remembersans-serif; font-size: medium;">Right nowsans-serif; font-size: medium;">So when Janet Yellensans-serif; font-size: medium;">Stockssans-serif; font-size: medium;">The decision to do anything will essentially be binary. If the decision favors Aereo I would be very interested in re-purchasing shares of Sinclair Broadcasting. Ifsans-serif; font-size: medium;">They have pretty powerful tools even when there's some concern that the quiver is beginning to empty.<span style="font-family: arialsans-serif; font-size: medium;">This week's potential purchases reflect the difficulty in re-allocating funds when prices are at or near their highs. Both Dow Chemical (DOW) and Deere (DE) are ex-dsans-serif; font-size: medium;">Traditional Stocks: Applesans-serif; font-size: medium;">While I already have some shares of Kohls that are hoped to be assigned away or rolled over this coming weeksans-serif; font-size: medium;">While the Federal Reserve may be easing some defenses as it continues to ignore some inflationary pressures I've been looking increasingly to a more defensive positisans-serif; font-size: medium;">While the option market is anticipating an 11.1% move in share price upon earnings announcement in either directionsans-serif; font-size: medium;">While the option market is anticipating only a 7.5% move in pricesans-serif; font-size: medium;">While the speculation regarding new products and innovations will continue and there will undoubtedly be occasional elation and occasional disappointmentsans-serif;">There's an old expression that advises that it's generally a bad idea to fight the Federal Reserve.<span style="font-family: arialSBGISBUXSCTYSDRLSHAKshares would fill a void for me as I'm currently under-invested in the technology sector. That itself may not be a good reason to add sharesshe would be a formidable foe to anything that creates a threat.<span style="font-family: arialSHLDSinclair Broadcasting (SBGI) was a stock that I kept a close eye on this past week. As the nation's largest independent broadcaster it potential had something to lose as it awaited a decision by the SSinclair Broadcasting<p style="margin: 0px 0px 17px; padding: 0px; outline: 0px; border: 0px currentColor; color: rgb(51SLBSNDKso there may be some sporadic punches taken in the name of advancing the offense.<span style="font-family: arialSODASPYSTJSTTSTXSTXEsuch as Apollo.<span style="font-family: arialSWKSWNSWYSXLSYYTtaking and throwing the same punchesTAPTEVATGTthat makes it a much more logical covered option trade than at anytime over the past 30 months.<span style="font-family: arialthat should be the case for both Dow Chemical and Deerethe 1% ROI threshold may be able to be achieved if shares drop less than 9.3%. The availability of expanded weekly options makes this a bit more attractive than the Apollo tradethe Federal Reserve is giving us all of the opportunities we need and I'm certainly not going to become a fighter at this stage in my life.<p style="margin: 0px 0px 17px; padding: 0px; outlinethe most immediate threat that can be recognized is that of a rising interest rate environmentthe sale of put contracts at a strike level 14.9% below Friday's closing price could still deliver a weekly 1% ROIthe week's potential stock selections are classified as being in Traditionalthere isn't the same kind of gap between the implied price move and the strike level that gives me a sense of security if selling puts. Howeverthese are just guidelines for the coming week. The above selections may become actionableTIFTIVOETMUStooTSLATWCTWTRTWXTXNTYCUAUALUNHVVLKAYVLOVMWVMWare (VMW).<span style="font-family: arialVXXVZWAGWBAWDCWeekly ProspectsWFCWFMwhat is clear is that for those expecting a quick profit once the shares became priced in a more egalitarian fashion it has been two weeks of disappointments. in that time Apple shares dropped 1.7% whwhere possible.<span style="font-family: arialwhich limits the ability to respond to an adverse price movement that might make unwanted assignment possiblewhich was the conclusion of the June 2014 option cyclewhile awaiting it to give back some gains.<span style="font-family: arialwhile having owned shares of Dow Chemical recentlywhile then awaiting a bounce back in share price.<span style="font-family: arialWLTWMBWMTWNRWSMWSMEditWYWYNNXXLVXOMYELPYHOOYUMYUMEditZZSLZTSChoose from the terms above to enable email notifications when new posts are published.Receive HTML Email notificationsReceive HTML email notifications (uncheck for plain text)Pause notifications Temporarily stop all notificationsUnsubscribe from all notifications Remove preferences and stop all notifications.*Required fieldPowered by WP-Members Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Tumblr (Opens in new window)Click to print (Opens in new window)Like this:Like Loading...
