But first, the Weekly Market Snapshot:
|
Indices |
Weekly Close | Previous Close | Change | Percentage Change |
|
Dow |
34,618.24 | 34,576.59 | + 41.65 | + 0.12% |
|
S&P 500 |
4,450.32 |
4,457.59 |
– 7.27 |
– 0.16% |
| Nasdaq | 13,708.34 | 13,761.53 | – 53.19 |
– 0.39% |
Stock Performance of Options2Wealth Portfolio Companies:
|
Company |
Weekly Close | Previous Close | Change | Percentage Change |
|
Intel Corporation |
$37.88 | $38.01 | – $0.13 |
– 0.34% |
|
Fluor, Inc. |
$35.56 | $35.00 | + $0.56 |
+ 1.60% |
|
Tetra Technologies |
$ 6.43 | $ 5.81 | + $0.62 |
+ 10.67% |
| Microvast Holdings | $ 2.03 | $ 2.11 | – $0.08 |
– 3.80% |
Now let’s see how my O2W portfolio has fared over the last week:
Options2Wealth Options Portfolio:
|
Company |
Options | Quantity | Purchase Price | Weekly Close * | Price Change | Current Value |
|
INTC |
Nov 17, 2023 $35 Calls | 10 Contracts | $2.85 | $4.15 | +$1.30 | $4,150.00 |
| INTC | Oct 27, 2023 $43 Calls | 10 Contracts | $0.85 | $0.41 | – $0.44 |
$410.00 |
|
INTC |
Sept. 22, 2023 $40 Calls | 20 Contracts | $0.49 | $0.12 | – $0.37 |
$240.00 |
|
FLR |
Oct 20, 2023 $35 Calls | 7 Contracts | $2.10 | $1.65 | – $0.45 |
$1,155.00 |
|
TTI |
Dec 15, 2023 $5 Calls | 20 Contracts | $1.10 | $1.75 | +$0.65 |
$3,500.00 |
| MVST | Dec 15, 2024 $2.5 Calls | 10 Contracts | $0.50 | $0.20 | –$0.30 |
200.00 |
*Bid Price
Options2Wealth Portfolio Market Value (Week ending Sept 15th, 2023):
|
Current Week |
Previous Week | Weekly Change | Weekly % Change | Total Current Value | YTD % Change |
Avai. Cash |
| $10,766.63 | $10,199.45 | +$567.18 | +5.56 | $10,766.63 | +7.16 |
$1,111.63 |
Weekly Musings:
Intel & Nvidia
In my first post on September 4th post, I picked Intel Corporation as my #1 stock for my new Options2Wealth trading portfolio. The reason behind my bullishness is based on the simple premise that the valuation multiple that Nvidia enjoys over Intel cannot be justified by me:
“The dominant microprocessor company of the 1980s and the 1990s (recall the Intel Inside marketing campaign) is now the laggard (market-cap of just $153 Billion) in the new era of Artificial intelligence dominated by Nvidia (Symbol: NVDA) with a market-cap of $1,200 Billion.
I believe this 8x price multiple cannot be sustained and should come down in the not-too-distant future.
If Intel’s stock price were to just double from here to $70 / share, its market-cap will be slightly above $300B and the 8x multiple will be cut in half, provided of course Nvidia’s stock price stays around $500.”
Let’s see how the two stocks have fared since I postulated my opinion 2 weeks ago:
|
Stock |
Closing Price on Sept 1, 2023 | Price on Sept. 15, 2023 | Price Change | Percentage Change |
|
NVDA |
$485.09 | $439.00 | —46.09 |
—9.50% |
| INTC | $36.61 | $37.88 | +$1.27 |
+3.47% |
Over the last 2 weeks, Nvidia’s market capitalization has shrunk by a whopping $116 billion while Intel’s has gone up by approx. $5.64 billion, reducing NVDA’s multiple over Intel has shrunk from almost 8x to 6.8x.
I am betting that the multiple should go down even further between now and Intel’s projected earning’s release on October 27, 2023.
Note the relative performance(s) of the two companies’ weekly price movements via their respective PnF charts:
Over the last 2 weeks, Nvidia’s market capitalization has shrunk by a whopping $116 billion while Intel’s has gone up by approx. $5.64 billion, reducing NVDA’s multiple over Intel has shrunk from almost 8x to 6.8x.
I am betting that the multiple should go down even further between now and Intel’s projected earning’s release on October 27, 2023.
O2W Intel options positions:
The 2 Intel options I purchased this past week have not done well for me…especially the options that expire this week. Depending how the markets open on Monday, I may add to my position(s) to average down my cost(s). Not sure if the options that expire this week will turn a profit, however, I still feel comfortable with my October $43 option position.
Intel is holding its annual developer conference this week (Tuesday and Wednesday). And should they share their Ai roadmap at this conference, I believe INTC stock will jump. Let’s see how the week unfolds…
O2W TTI options position:
My position in Tetra options has been doing quite well but should TTI stock hit $7.00, I will book profits by selling most of my TTI options.
Happy Trading!
karim
DISCLAIMER: I am not a licensed broker or securities dealer. 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 not for the faint of heart as one’s portfolio can move up, or down 10%-50% or more during a single trading day, so trade with extreme caution. Past performance is no guarantee of future results.
Full Disclosure: I own options in the stocks of companies mentioned in my posts.