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I used to run a limited partnership, boutique hedge fund in the 90s. Retired in 2000 and moved from New York City to Toronto, Canada, got married, raised a family and basically settled down. After a few years in Toronto, my wife got tired of the city’s 8 months of cold weather and insisted that... More
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  • Portfolio Update 5/17/2013 4 comments
    May 19, 2013 9:43 PM | about stocks: AAPL, CSCO, FSLRQ, VIAV, JNPR, LDK, QCOM, S, SPWR, TSL, SUNEQ

    This was another good week for my Options2Wealth portfolio...

    Thanks to continued strength in SunPower, which, to my chagrin and disappointment, refuses to make a 3 Box Reversal on its PnF chart, and a strong move by WFR, helped lift my public portfolio's value well past the half million mark and it closed the week with a value of $624,798, up 6,148%...Shared below is the screen shot of an Excel spreadsheet showing the portfolio's current holdings and value :

    (click to enlarge)

    For the coming week, I expect SunPower to complete its current run up when it prints $23 on its PnF chart, at which point I will exit out of my 700 CALL contracts of its June 2013 $15 options...I am 99.9% sure that SPWR's stock price will pull back to around $19, consolidate around the new $20 floor, before resuming its next upward move towards $30...Once it has completed its upcoming consolidation phase which, btw, should last about 8 weeks, I plan to climb back with another large position...

    In the meantime, my portfolio's other holdings, namely WFR, TSL and LDK are getting ready to make their individual moves up as well...of the 3, I am most bullish about WFR and almost equally so about TSL...on LDK however, my conviction is not as sanguine...

    Here are the PnF charts of WFR and TSL and also the candlestick chart of TSL...

    (click to enlarge)

    (click to enlarge)

    (click to enlarge)

    From the WFR's PnF chart, one can see that its has pushed its Bearish Resistance Line a little and when its stock price prints $7.00, which incidentally is also a double top break, it will have convincingly broken through...(As pointed out in my April 22nd post titled Reasons Behind My Big Bet on SunPower, I had highlighted the significance of this break...the subsequent move of SunPower in the last 1 month shows the validity, and importance, of this break...) I believe that WFR will make such a break this week...in fact, the chances of it doing so on either Monday or Tuesday are looking pretty good...I, however, would prefer that it delays its move until after SunPower completes its run to $23, so that I can exit SPWR and pile some more cash into WFR...


    On TSL, a similar pattern is beginning to develop on its PnF chart...additionally, as can be seen from its candlestick chart, the 50 day simple moving average (NYSE:SMA) line just crossed the stock's 200 day SMA, another bullish indicator...In anticipation of the impending fireworks in TSL's share price, I plan to substantially increase my portfolio's exposure to the stock this coming week...

    Hurry up SunPower and complete your darn move to $23! LOL!


    DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you. On the other hand, if the move(s) result in a profit for you, I am open to discussing a split. ;-)

    Disclosure: I am long LDK, SPWR, TSL, WFR.

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Comments (4)
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  • 11828801
    , contributor
    Comments (33) | Send Message
    I am plannig to "Call" on WFR. Which strike price you suggest and also Expiration? As of now I am aiming for 7.0 Strike price for Jun'22 2013 Strike Price. Do u think this is OK ?
    19 May 2013, 10:58 PM Reply Like
  • Options2Wealth
    , contributor
    Comments (135) | Send Message
    Author’s reply » Aggressive but doable...In my personal portfolio, I also have a pretty significant position in $7 CALLS, but for October expiration...I bought these a couple of weeks ago and paid as little as 37¢ and expect them to be worth at least $6 by expiration...on Friday they were selling for 91¢...those are the ones that I will still be buying...kp
    20 May 2013, 09:28 AM Reply Like
  • Spak007
    , contributor
    Comments (19) | Send Message
    Is there any significance that the volume on the June $35 calls has jumped. Is it possible SPWR in the short term runs even higher than your previous $23 target.
    20 May 2013, 04:32 PM Reply Like
  • Options2Wealth
    , contributor
    Comments (135) | Send Message
    Author’s reply » I don't believe that SPWR will print $24 without first pulling back and doing a 3 or 4 Box reversal on its PnF chart..Here on my blog, I have stated on more than one occasion that SPWR's share price will eclipse that of FSLR...However, no stock, no matter how good its business prospects, can keep printing Xs on its PnF chart without switching into Os and consolidating...As for the unusual activity in its June $35 CALLS...First of all, we don't know if most of that activity was CALL buying, or selling, to open a new position(s)...and second, if people are betting that by June expiration, SPWR will be over $35, then, unless they have some insider information, they are gamblers and in the next 2 weeks or so, their CALLS will be worth a lot less than what they paid for...I don't believe in gambling...In order for SunPower to get to $35, it will first need to digest its recent $14 dollar move (from $9 to $23) and consolidate around the $19-$20 range before making a move towards $35...just my humble opinion...kp
    20 May 2013, 09:38 PM Reply Like
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