General Market Direction:
Last week I described the previous week’s market action as: BRUTAL!
What a difference a week makes!
This past week was the mirror opposite of the previous week!
I will let the numbers tell the week’s story:
Weekly Market Snapshot:
| Index | Previous Week’s Close | Current Week’s Close | Change | % Change |
| Dow | 32,417.59 | 34,061.32 | +1,643.73 | + 5.07% |
| SPX | 4,117.37 | 4,358.34 | + 240.97 | +5.85% |
| Nasdaq | 12,643.01 | 13,478.28 | + 835.27 | +6.61% |
For the week, the Dow was up a solid 5.07% and the S&P did even better, up 5.85%! However, it was the tech-heavy Nasdaq that got to eat the cake, up a very impressive 6.61%!
Stock Performance of Options2Wealth Portfolio Companies:
| Company | Weekly Close | Previous Close | Change | Percentage |
| Intel Corporation | $38.14 | $35.54 | +$2.60 | + 7.32% |
| Tetra Technologies | $4.56 | $5.55 | –$0.99 | – 17.84% |
| Palantir Technologies | $18.89 | $15.07 | +$3.82 | + 25.35% |
| Microvast Holdings | $1.42 | $1.28 | +$0.14 | + 10.94% |
| Upstart Holdings | $30.32 | $23.03 | +$7.29 | + 31.6% |
Now it’s time to check the performance of my O2W portfolio over the past week:
Options2Wealth Options Portfolio:
| Company | Options | Quantity | Purchase Price | Weekly Close * | Price Change | Current Value |
| INTC | Nov 17, 2023 $35 Calls | 15 | $2.75 (Average) | $3.15 | +$ 0.40 | $4,725.00 |
| INTC (Expired Worthless) | Oct 27, 2023 $43 Calls | 10 | $0.85 | $0.00 | –$ 0.85 | $ 0.00 |
| TTI | Dec 15, 2023 $5 Calls | 20 | $1.10 | $0.05 | – 1.05 | $ 100.00 |
| MVST | Dec 15, 2023 $2.5 Calls | 10 | $0.50 | $0.00 | – 0.50 | $ 0.00 |
| PLTR | Nov 17, 2023 $16 Calls | 10 | $1.68 | $2.96 | +$1.28 | $ 2,960.00 |
| UPST | Dec 15, 2023 $27.50 Calls | 1 | $5.20 | $5.90 | +$0.70 | $ 590.00 |
| Available Cash | $ 118.78 | |||||
| Total Portfolio Value | $8,493.78 |
*Bid Price
Options2Wealth Portfolio Snapshot (Week ending November 3rd, 2023):
|
Current Week |
Previous Week | Weekly Change | Weekly % Change | Total Current Value | YTD % Change |
Avai. Cash |
| $8,493.78 | $4,901.78 | +$3,592.00 | +73.28% | $8,493.78 | –15.06% |
$ 118.78 |
This past week, my O2W portfolio made a dramatic turnaround, up a whopping 73%. However, it is still down 15% since I started this experiment with $10,000.
Considering that during the last 2 months the market pullback has taken every stock index through the wringer, I am pleased that my 100% stock options portfolio is only down 15%…I feel very good about my portfolio’s prospect this coming week.
Intel & Nvidia
Approximately 2 months ago, when I started my latest experiment trading stock options with $10,000, I, for my initial trades, allocated the largest percentage into Intel call options. The reason behind my big bet on Intel was that I believed that the market had mis-priced this semi-conductor behemoth. Though it was very bullish on Intel’s rival Nvidia, it was very bearish on Intel’s prospects in the AI space. My stance was not anti-NVDA. I simply did not agree with the almost 8x market cap multiple that NVDA enjoyed over Intel: $1.2T for NVDA and $152B for Intel.
In the 2 months since I made my bet on Intel, the market-cap multiple between the 2 chip making giants is slowly starting to shrink. As of last week, NVDA’s market-cap is $1.11T and INTC’s market cap now is $1.61B and the Nvidia’s market-cap multiple over Intel now has shrunk to 6.9x.
With NVDA announcing earnings in about 2 weeks, I fully expect the stock to make another big upward move going into its quarterly earnings announcement. However, I also believe that INTC will continue to move higher as well and the stock will continue to chip away NVDA’s market-cap multiple advantage.
|
Stock |
Closing Price on Sept 1, 2023 | Price on Nov. 3rd, 2023 | Price Change | Percentage Change |
|
NVDA |
$485.09 | $450.00 | —$35.09 |
—14.68% |
| INTC | $36.61 | $38.14 | +$ 1.53 |
+ 4.18% |
Over the past 2+ months, on a percentage basis, NVDA’s stock price has come down almost 15% while Intel’s stock price is up 4+%.
Intel is moving in the right direction but it still has lots of ground to cover…
Wish you all a Safe Monday!
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.