Market Wrap Up – August 29, 2013

Market Wrap Up – August 29, 2013

US equity markets closed higher as fears over the situation in Syria began to ease following stand-offish comments by President Barack Obama and an unwillingness to participate from the British government. $SPY broke through a key short-term resistance level at $164.40 early in the trading session, extending to session highs over $165 before selling off in the session’s final hour, closing below initial resistance at 164.17. Verizon Wireless made Thursday’s biggest market headlines as it appears poised to buyout Vodafone’s stake in the North American wireless provider for as much as $125 billion. Shares surged in the pre-market to more than $50 before selling off for much of the day’s session, closing up 2.71% at $47.82.

Key movers in the VT portfolio included Campbell’s Soup $CPB, which we played ahead of earnings by purchasing the September 21 $45 strike put calls for $1.15. The firm posted decent earnings results, but write-offs and concerns over the company’s European exploits caused a 3% sell-off on the day. We sold our put options at $1.70 on the news amidst market strength, good for a 4738% gain. Another mover was Fuel Cell Energy $FCEL, one of our favorite long-term equity plays. The clean energy developer of fuel cell power generators closed on the highs at $1.21 per share, perhaps receiving a boost from oil shortage fears stemming from the Syrian situation. The Street’s Roberto Pedone @zerosum24 highlighted the technical setup for $FCEL, featuring the stock in one of his regular technical breakout pieces (http://www.thestreet.com/story/12022407/6/5-stocks-under-10-set-to-soar.html). We remain bullish on $FCEL’s fuel cell technology, and the company is rapidly approaching profitability as alternative energy continues to shift to the forefront. Fuel Cell delivers earnings next week, and we will be delivering our strategy for the stock ahead of earnings.

We will be looking to play the Technology sector once again after having found success with Facebook $FB weekly option swings spanning Friday-Monday over the past two weeks. Tesla $TSLA, Amazon $AMZN, Netflix $NFLX and Apple $AAPL remain our stocks to watch in the sector for short term movement. We will also be taking a look at the banking industry for a possible short-term move as well, with Goldman Sachs $GS representing a leading candidate.

LONG POSITIONS:

AAPL Stock from $405

AAPL 8/30 Weekly $495 Calls from $.90 (NEW POSITION)

FCEL Stock from $1.20

HOLX 9/21 $22 Calls from $.50

OMX 2/22/14 $11 Calls from $1.15

SHORT POSITIONS:

T Oct. $31 Puts from $.25

TAP Sep $50 Puts from $2

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Posted on August 29, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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