It was an admittedly tough week for us with two of our core holdings reporting less than expected results for the March quarter or providing guidance for the June quarter that came in below Wall Street expectations.

Google reported numbers on Thursday night that by all counts were good (given the size of Google) but were greeted with a chorus of boos by Wall Street. AS a result, we took a beating in our long call positions expiring in June. ON the flip side, we were able to add 50 shares of Google (GOOGL) to our portfolio at $731.77 per share on Friday.

Netflix reported strong numbers for the March quarter with a beat on earnings and subscribers but guided June quarter subscriber addition to a tepid 2 million adds in international. The shares also sold off about 9-10% again affecting our call position expiring in June. On the flip side, we were able to open an equity position of 500 shares of Netflix at an average price of $93.77 per share.

Our weekly call shares on Google and Netflix has thus far been very successful netting us $5,110 and $1,490 in Netflix for the week.

We have made two covered call sales on our equity holdings namely, NFLX and GOOGL selling 5 calls and 1 call respectively expiring next week. It is not that I am bearish on the two names but it's just a way to continue to generate weekly income on our long equity holding and/or lower our cost basis on those equity holdings on constant weekly basis.

Last week was generally a down week in tech land, so our other option positions were also affected negatively and I will be making some moves to offset those losses in the coming weeks.

We have three big earnings coming up next week as far as our portfolio holdings with Apple earnings on Tuesday after the close and Baidu and Amazon on tap after the close of trading on Thursday.

With that I wish all of you all much success and a very happy weekend.

Weekly recap for 1/15/2016

Good morning

We finished last week up 1% and are now up 12% for 2017. I am not too pleased but given the volatility and given the fact that we operate in techland only which has seen continued higher volatility than most other sectors, I will take it. Just the nature of the beast. Of course, a major reason for not having a better week is the fact that Amazon did not announce an earnings date last week which led to options specialists in Amazon sucking a lot of ER volatility out of the January 27 strikes and adding it to the following week. An ER date announcement will more than likely come from Amazon tomorrow itself but it is what it is. 

No woulda, shoulda, coulda allowed. 

The account I have set up for the site is under no tech-only mandate/restrictions that I have for the fund or the IMA (individually managed account) part of my firm. So, if the opportunity presents itself, other sectors are open to establish positions in and around. I leave that up to you. I would love to hear your thoughts on that, so please take the 30 seconds or so it will take to respond back with your yea or nay.

Last week, we opened new positions in Google, Skyworks, JD.com, Micron and NetEase. We took partial profits on our FaceBook 125 calls with a sale at $7.07 (average cost of entry was $1.51) and we entered a new position in FaceBook with a strike of $135.

 Our new FB strikes and our existing position in the 125's are all free rides. All the Facebook options have been already paid for with our 125 strikes sales. Not bad, no? 

Finally, we added to our position in Alibaba calls.

Global markets are open today and Asian markets mostly closed lower on the day with the Nikkei lower by 1%, the Shanghai Comp was off 0.3%, Hang Seng lower by 1% as well and the Sensex was the lone market in the green with a tiny gain of 0.2%. Anxiety in the region seems to be picking up on the Brexit speech by PM May tomorrow and PEOTUS Trump's inauguration looming large as well as worries about what he might say/tweet regarding China, Japan and just about anything that pops into his head are a constant overhang. LOL

Across the pond, the CAC is lower by is lower by 0.6%, the Dax is down 0.5% and the FTSE is flat as a pancake.

Here are a few links to my articles over the weekend on Forbes and RMpro.com for those of you that want to read up ahead of the opening bell tomorrow.

http://www.forbes.com/sites/jaysomaney/2017/01/16/slice-survey-confirms-what-savvy-forbes-readers-already-knew-apple-airpods-sales-explode/#67d908281882

http://www.forbes.com/sites/jaysomaney/2017/01/15/it-could-be-time-to-not-yahoo-anymore/#6aa58447541d

http://realmoneypro.thestreet.com/articles/01/14/2017/dont-be-fooled-earnings-wells-fargo-jpmorgan-and-bank-america?cm_ven_int=homepage-latest-headlines

My Cowboys lost yesterday but fought tooth and nail to the finish. A couple of plays and we could have pulled out a win and headed to the Championship game next weekend. All in all, a great season given what the experts were predicting once Tony Romo went down in the offseason. I, for one, cannot wait for the 2017 season to begin. 

I hope you are having a happy weekend with your loved ones.

Thanks as always and be safe

jay

Weekly recap for 1/22/2016

Good morning

We are back to tech apathy again, if not outright tech avoidance as our new President continues to threaten a trade war outright all over the globe. On the flip side, he has said nothing about the new administrations plans for fiscal policy and spending going forward. His favorite targets remain China, Mexico, and Japan and in almost every soundbite regarding trade, those countries are mentioned. I continue to believe that he is continuing with his campaign rhetoric however given the wild-card that he is, an element of uncertainty has crept back in the markets globally. It could be time for some positive news regarding his policies this week. 

Please also keep in mind that everyone wants the markets to fall and both the under-invested bulls and the dark-side (obviously) are all at their vocal and strident loudest at the moment. Both sides are desperately trying to talk things lower and using every half-truth if not outright lie to do so. Be careful out there.

Our account has slipped into the negative (-4%) for the year and I am not a happy camper to say the least. There is a lot of shouting by the gurus and swamis on the boob tube about Trump trade reversals and all that noise, however techland did not benefit in from any rally since Trump won the elections in the first place. However, there is no doubt that if the POTUS were to get into a trade war with China a lot of our positions in techland would be hurt significantly and not just the Chinese stocks we have direct exposure to but also the likes of Apple, the semis, and pretty much every other company out there that has manufacturing operations in Asia. Again, I don't think he is stupid enough to get into a trade war and this is all rhetoric tin order to bring these countries to the negotiating table with the Trump team seizing the early advantage. At least, thats what it looks like from a reasonable point of view.

We have a few of our account positions reporting earnings this week starting with Alibaba tomorrow morning (Tuesday) before the opening bell, and Google after the close on Thursday. I expect outstanding numbers from both the companies ala Netflix however the reaction to the earnings is not clear at the moment. Alibaba has a massive short position at the moment (110 million shares or so) which could lead to a nice squeeze and take it past the $4.70 or so move indicated currently. (See my article on Forbes.com). Google was a flatliner all of last year (up 2% in 2016 at best) and I expect the management, especially CFO Ruth Porat, is well aware of the relative underperformance and will not let it happen again this year. 

I hope each and everyone of you have had a great weekend with your loved ones.

Be safe

See you in our little room in a few hours

Jay

PS: please keep your positions as big or as small as your total account size warrants

PPS: A few articles for those of you that would like to read them that were published dover the weekend:

http://realmoneypro.thestreet.com/articles/01/21/2017/here-comes-avalanche-tech-earnings-good-netflix?cm_ven_int=homepage-latest-headlines

http://www.forbes.com/sites/jaysomaney/2017/01/22/yahoo-could-be-ushering-in-the-end-of-an-era-with-earnings-on-monday/#2f400b5e12a0

http://www.forbes.com/sites/jaysomaney/2017/01/22/alibaba-could-silence-critics-with-its-earnings-on-tuesday-morning/#39eeacf67e11

Weekly recap for 1/29/2016

Good morning

I hope you enjoyed your weekend with your loved ones.

Well, this week President Trump dropped another potential surprise on the world with his ban on citizens from 7 countries which have global markets on risk-off mode today with most Asian markets lower, EC markets also lower and our futures indicating a red open as well.

To recap, Trump has signed the repeal of Obamacare, tore up NAFTA and TPP, signed a bill to build the wall, now banned people from entering our shores, and so what's left for him to do? Start trade wars and on the positive side lower corporate taxes, and allow for repatriation of overseas money for US corporates. One major negative left and two major positives. Timing is the key there though. Until last week I was under the impression/hope that maybe Trump would see better of going after every single thing he talked about in his campaign bluster. Now it seems just in a week he has come through on the worst of his promises. On the flip side, it means now maybe, he could come up with some positives like the lowering taxes and repatriation.

As far as our performance in the week goes, we had terrific week going from a negative return 4% YTD as of last weekend to a positive 21% as of this past weekend and for 2017. The account I have set up for the site has a current liquidation value of $324,506 as of Friday closing prices. Not bad considering the account was funded with $100,000 on Feb 1, 2016, no?

Tech is still not completely back or at least not convincingly enough. We had the "miss" from Google otherwise our week would have been even better. I am still not pleased with my overall performance and I expect going forward there remains a lot more work to be done. The year has started out as volatile as the last many years have been and like I have said, making money in this environment is tough. However, this is why we are all here. "Together we will all get there, where there is for each of us." 

Our basket of Chinese stocks are not acting very well with the Trump threat overhanging heavy on those names however I still expect 2017 will be the year of Chinese stocks to come flying through. I will have to, maybe, make a few moves in the names that we own in that basket. Extending expirations being one of them and/or equity positions as well. I am aware that I will have to clear some room in the portfolio if I were to add equity shares.

Last week, I added equity shares in Google/Alphabet and Amazon although I might make a few moves in those two positions this week. WE also sold some options positions, in GOOGL, AMZN, FB and MU last week while adding/opening options in further dated expirations/strikes in all four. This week will bring us to the meat and potatoes of techland earnings with Amazon on Thursday, FB on Wednesday and Apple reporting tomorrow (Tuesday) amongst a slew of others. 

For your reading pleasure (if you like that is).

https://www.forbes.com/sites/jaysomaney/2017/01/29/using-already-reported-techland-earnings-to-decode-apples-results-on-tuesday-evening/#1133dcd16dc1

Our futures are down this morning as most Asian markets were lower as our EC markets as investors globally seem to be in risk-off mode (at least this morning) as they mull over the ban from President Trump.

See you all in the room in a bit.

Until next week, 

stay safe and stay happy

Jay

Weekly Update Week Ended Feb 5, 2017

Good morning:

We gave up ground last week in terms of performance as Amazon laid an egg (so to speak) for us. The loss was lessened by the sale of calls against our equity however it was obviously not enough and tech continues to perform erratically in response to the erratic policies our President Trump. Over the weekend you had a who's who among tech firms in Silicon Valley file an amicus brief in support of overturning the immigration ban against refugees from seven Muslim countries. I am a huge believer in not mixing politics and business and whatever my moral and humanitarian views are on the matter, my business sense says that shareholder money is better spent elsewhere.

Our performance in the week slipped and were are still way ahead of the Nasdaq and the other indices, (up 16%) and that is disappointing to me. Lots of works remains going forward. Our Chinese basket also had a down week and continues to drag on our portfolio overall despite no major news on any stock in particular although after trading closed on the week, Walmart announced that they had upped their stake in JD.com. 

Last week we added positions in Apple, Google and had opened new positions in Oclaro, Proofpoint and FireEye. We sold our ITM calls in Apple expiring in April last week.

We have a relatively busy week again with earnings from Twilio tomorrow and Nvidia on Thursday as far as our portfolio holdings are concerned.

Here are a few articles that were published over the weekend:

http://www.forbes.com/sites/jaysomaney/2017/02/05/why-does-walmart-keep-upping-its-stake-in-chinese-e-commerce-player-jd-com/#43b253412d2e

http://www.forbes.com/sites/jaysomaney/2017/02/05/twilio-can-fly-once-again-after-its-earnings-on-tuesday-night/#138b839327c4

As seems to be the norm for our futures and the negativity that has gripped investors here at home our futures are indicating a lower open this morning despite Asian markets mostly higher and EC market treading water for the most part.

Until the next week may all your trades be in your favor.

Be safe

Jay