This best way to describe this past week’s the stock markets’ action: turbulent.
However, on Friday, even though the employment data was not what the markets hoped and it showed its displeasure by dropping like a rock at the open. However, by late morning, the indices had a change of heart and reversed with a vengeance and all major indices closed up for the day.
For the record, I called the bottom a day earlier: On Thursday, October 5, 2023.
For the week, the Dow closed down fractionally while the S&P closed up almost 0.5%. The tech-heavy Nasdaq was the star performer closing up an impressive 1.60% for the week!
Weekly Market Snapshot:
| Index | Previous Week’s Close | Current Week’s Close | Change | % Change |
| Dow | 33,507.50 | 33,407.58 | – 99.92 | – 0.30% |
| SPX | 4,288.05 | 4,308.50 | + 20.45 | + 0.48% |
| Nasdaq | 13,219.32 | 13,431.34 | + 212.02 | + 1.60% |
Stock Performance of Options2Wealth Portfolio Companies:
|
Company |
Weekly Close | Previous Close | Change | Percentage Change |
|
Intel Corporation |
$36.19 | $35.55 | + $0.64 |
+1.80% |
|
Tetra Technologies |
$ 5.64 | $ 6.38 | + $0.21 | – 11.60% |
|
Palantir Technologies |
$ 16.61 | $ 16.00 | + $0.21 |
+ 3.81% |
| Microvast Holdings | $ 1.71 | $ 1.89 | + $0.13 |
– 9.52% |
Let’s now 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) | $2.65 | – $0.10 | $3,975.00 |
| INTC | Oct 27, 2023 $43 Calls | 10 | $0.85 | $0.10 | – $0.75 | $ 100.00 |
| TTI | Dec 15, 2023 $5 Calls | 20 | $1.10 | $0.85 | – $0.25 | $1,700.00 |
| MVST | Dec 15, 2023 $2.5 Calls | 10 | $0.50 | $0.10 | – $0.40 | $ 100.00 |
| PLTR | Nov 17, 2023 $16 Calls | 10 | $1.68 | $1.92 | + $0.24 | $1,920.00 |
| QQQ | Oct 20, 2023 $345 Puts | 0 | Sold Position | Sold Position | Sold Position | $ 0.00 |
| Available Cash | $ 639.43 | |||||
| Total Portfolio Value | $8,434.43 |
*Bid Price
Options2Wealth Portfolio Snapshot (Week ending Oct 6th, 2023):
|
Current Week |
Previous Week | Weekly Change | Weekly % Change | Total Current Value | YTD % Change |
Avai. Cash |
| $8,434.43 | $9,019.78 | – $ 585.35 | – 6.50% | $8,434.43 | –15.66 |
$ 639.43 |
Even though my portfolio’s value is down 6.5% for the week, and more than 15.50% since its inception, I feel quite confident that it should substantially outperform the overall market for the remainder of the year.
Weekly Musings:
Intel & Nvidia
This past week both INTC and NVDA outperformed the overall market, however, NVDA’s performance was especially impressive.
|
Stock |
Closing Price on Sept 29, 2023 | Price on Oct. 6, 2023 | Price Change | Percentage Change |
|
NVDA |
$434.99 | $457.62 | +22.63 |
+5.20% |
| INTC | $35.55 | $36.19 | +0.64 |
+1.80% |
Let’s see how the two stocks have fared since I postulated 5 weeks ago that the market-cap multiple between the 2 stocks will shrink:
|
Stock |
Closing Price on Sept 1, 2023 | Price on Oct. 6, 2023 | Price Change | Percentage Change |
|
NVDA |
$485.09 | $457.62 | —50.10 |
—5.66% |
| INTC | $36.61 | $36.19 | —1.06 |
—1.15% |
Over the past 5 weeks, on a percentage basis, NVDA’s stock price has come down almost 5x more than INTC’s stock price.
And therefore, NVDA‘s market-cap has shrunk substantially more than INTC and that of course means that NVDA’s market cap multiple over INTC has also come down.
General Market Direction:
Last Thursday, October 5, 2023 I called the market bottom. The next day, Friday, the markets made a very impressive reversal and confirmed my previous day’s call!
Unfortunately, yesterday, war broke out in the Middle East between Israel and Hamas and as I type this post, the market futures are indicating a significant pullback.
Irrespective of tomorrow’s market action, I still believe that Friday’s reversal will hold and the markets will continue to move up from here and all the way into the New Year (2024)!
Wish you all a Happy 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.