Results for Week Ending October 26, 2012

Hello followers, lurkers and casual observers,

This week was a weird week.  This was the big week for earnings season.  Most of the companies that were set to report for the quarter reported last week.  There were big point gains and point losses on the major indexes this week.  Also the different sectors in the S&P 500 were gyrating back and forth during the week.

AAPL gave an enticing target this week.  Option premiums on both the call and put sides of the chain were extremely high.  It was tempting to put a bet on like what we did with GOOG last week.  If we had done so it would have been very profitable.  But you long time readers know I am not a fan of earning speculation plays.  AAPL ended up following the lead of other big tech sector stocks last week and kept the downward plunge.  But there was enough other items out there like:  the product announcement earlier in the week, the renewed buzz about Apple Radio, the supply problems for the iPhone 5.  These things kept me out of the AAPL gall spread or outright buying of puts.

GLD was our pick again this week.  The premium in GLD is still holding and the ETF itself is still trading in a range bound manner.  This was like our safety blanket in this very volatile week.

I completed week 4 of MAX10 this week.  I am getting the feeling that this is a muscle building session.  I have not lost any weight, but during the workouts I have noticed that I can push myself harder and do a little more than last week, of even when this last session started.  My toe seems pretty good now and I think that next week I will be back to 100%.

The two youngest are finishing up their first marking period and getting geared up for conferences.  I always like this part as the teachers are very engaging and let you know how your kids are going.  Boy is getting pretty good grades – consistent to where he was last year.   Youngest received her first GPA this year in fifth grade – 3.8 most excellent.

Eldest daughter got to her duty station and starts her first tour of duty on the 29^th.  I hope she has a great learning experience during this tour.    

Ok, let’s get on with the analysis:

ANALYSIS

Here is the trade:

GLD    167.50     Call     $0.151

GLD    168.50     Call    ($0.090)               This gave a $0.061 Net Credit for a 6.1% ROI

GLD    169.00     Call     $0.10

GLD    170.00     Call    ($0.06)                 This gave a $0.04 Net Credit for a 4.0% ROI

Total ROI for the week = 5.05% - Remember – we equally distribute assets among trades

We have done trades like this before.  I like to call them ladder trades as the trades look like rungs on a ladder when you look at them on the graph.  We start with our normal trade hitting our parameters.  Then we will go farther up the chain for calls and further down the chain for puts to still meet our ROI requirement. 

Looking at the chart it seems that we could have run a condor type trade.  I seriously thought about this, but I couldn’t get a put spread that met all of my requirements.  I also gave lots of consideration to making a trade that would give me some extra income but not hit my ROI requirement.  I probably could have done this as long as my overall ROI requirement kept intact, but I didn’t.  That is a thing I will have to keep in mind the next time this scenario comes up.

PAPER TRADE

Here are the Paper Trades from last week and our reasoning for getting into the trade:

AAPL   605.00   Put      Bought  Monday @ $0.92

                                    Sold Friday          @ $8.60

                                    Net Profit =              $768

1.      This put was bought to take advantage of the continuing slide of AAPL that has gone on for most of the month

2.      This was a big gamble with the product announcement coming out in the middle of the week, but when the numbers for the iPad came out we hit it big.  I probably should have sold this Thursday but still grabbed a nice gain for the paper account

3.      I followed the overall trend with this, but was greatly helped with the big downward bounce from the product announcement.  If not for that I probably would have lost on this trade. 

4.      The probability calculator had a 86.4% of success when I bought the put.

The paper trade was a success, but I really went out on a limb for this.  The trend was down for AAPL as well as the sector, but AAPL is notorious for beating those estimates and sentiments.  The item that really saved us was the numbers of iPads sold quoted in the product announcement.  The number was significantly down from what the Street thought they were going to be.  The big dip happened during the announcement.  As a result there was no big dip when earnings came out Thursday evening.  (There was a quick big dip, but still in aftermarket trading that dip largely went away and AAPL ended up Friday closing only a little more than $5 down.) 

COVERED CALLS

We have been doing covered calls on Vivus and McDonald’s.  We are continuing with these two stocks in our covered call adventure.

                                               

Symbol           Company       Stock     Option          Option            Initial              Annualized

VVUS             Vivus               17.55      Nov 23         .41                   2,676.00          18.38%*

MCD               McDonalds     88.72                                                   9,174.00             1.30%

* Changed this calculation from using the stock price at call option sell to using the initial investment.

VVUS – As we predicted last week, it looks like we are heading in for the support line of $17.46.  I am looking for this stock to start rebounding soon.  The drugs VVUS has in the pipeline are all still showing positive signs and the fundamentals of why I picked this company really have not changed.  We are getting really awesome premiums from this stock and technically it looks like we will start to pick up the share price soon.        

MCD is disappointing!  The option premium for this stock has basically dried up.  It is still a good stock to have overall and I will continue to hold it, but right now I am moving this from the covered call portfolio to the dividend portfolio. MCD will be found there next week.    

DIVIDEND STOCKS

Here is our Dividend Stock Portfolio:

Ticker Name                                                  Buy         Current      Date                Div

                                                                        Price           Price                               Yield  

 KO     Coke                                                         38.17      37.04       08/27/2012          2.71%

AGD   Alpine Global Dynamic Fund                    5.76        573        08/27/2012        12.18%

AOD   Alpine Total Dynamic Fund                      4.37        4.24       08/27/2012        14.80%

MO      Altria                                                        34.26      31.76       08/27/2012          5.17%

INTC   Intel                                                          22.87      21.95       10/01/2012          3.94%

HIX    Western Asset Hi Income Fund II          10.53      10.37       10/15/2012          9.44%         

Current Prices as of 10/26/2012 Closing Price

As I said above we will now see MCD in this portfolio as this is a great company making money hand over fist.  Earnings were a disappointment and the stock has taken a hit because of it.  But this is a great company and will rebound soon.  We get the dividend for this and will be good.

Each of these stocks carries a 15% stop on them, and we are nowhere near that on any of these stocks.  If 100 shares in each stock is held that will generate $416 in dividend revenue assuming no reinvestment.  This gives a 5.10% return.  This is a pretty good return in this market and it is very safe.  Three Blue Chips and two funds that are diversified in sectors and globally.  If reinvestment is used that number goes even higher.

I have developed a watchlist for this Portfolio.  These are stocks that basically meet the criteria we have: (1) a moat business model, (2) dividend of at least 3%, (3) solid fundamental analysis numbers.  Here is our watchlist:

                                                                       

Ticker Name                          Recent Price       Date                        Div Yield        Target Price

MSFT  Microsoft                         28.21          10/05/2012           3.12%         28.00

PG       Proctor and Gamble         69.44          09/21/2012           3.27%         62.50

JNJ      Johnson & Johnson          70.90          09/21/2012           3.56%         65.00  

MSFT – I will probably be picking up this stock any day now as we are nearing my target.    

JNJ – Still waiting!!!

PG – Again still waiting!

QUESTIONS

None at this time

 

DISCLAIMER:  Hashley Capital Management, LLC; as well as I are not giving any trading advice.  All data is historical in nature and is intended for use as an educational tool.  Trading in stocks and/or options is risky and can result in loss of capital. Stocks as well carry inherent risks and should be well researched before any buy decision is made.   There is no attempt to sell any brokerage services or act as a broker or dealer by Hashley Capital Management, LLC.  Any forward looking comments on this blog are not attempts to solicit business for Hashley Capital Management, LLC and are the opinion of Hashley Capital Management only.  If you choose to follow the same path and invest in the strategies and trades used by Hashley Capital Management, LLC after doing your own due diligence, that is your decision and yours alone. 

Reach me @:

Email:  hashleycm@yahoo.com

Twitter: @awagel01

Stocktwits:  awagel01

Or leave a comment on the blog

TTFN

Ash

Results for Week of October 19, 2012

Hello friends,

This week we decided to go on more of a technical bent.  We got off our AAPL kick as the decaying option premium got to the point where it became no longer practical to get into the AAPL option chain.  We moved into GOOG based on technical indicators.  We stayed with GLD as the option premium in this ETF is still quite high. 

I completed week 3 of MAX10 this week.  This go round I am not losing much weight, but I am really reshaping myself…I almost have abs and visible biceps and triceps again!!  The stress relief also is a good thing. I love the daily workouts.  I still have to be a little gentle on the almost healed fractured toe, but I am going about 85% right now.  Hopefully in the next couple of weeks I will be back to 100%.

Youngest child is now starting tumbling.  She really likes the gymnastics aspect, and loves the flexibility stuff.  We have the middle school volleyball program coming up next week then all the volleyball stuff will be done until this summer.    

Eldest daughter has been on leave for the past week.  She is resting as she gets ready for her first active duty station.  She will be off to Ellsworth AFB.  She is still really gung-ho and I hope she keeps that.    

Middle child, the boy, had a full social calendar this week.  He is starting to get invited to more and more things as he is there longer and longer.  It is good to see him having fun and making friends and memories.

ANALYSIS

Here is the trade:

GOOG    795.00     Call     $2.96

GOOG    800.00     Call    ($2.33)     This gave a $0.63 Net Credit for a 12.6% ROI

As I said in the intro I worked on more of a technical bent this week with one trade than I usually do.  This was the GOOG trade.  The GLD trade we pretty much followed the formula.

Again, I am going to use some terminology here to help some of the newbies that have asked for more usage of terms they see elsewhere our in the web-o-sphere.

The GOOG trade was a little out on the limb for me. Usually I don’t trade a stock in the week of earnings.  In fact that is one of the tenets of my system.  The following points can be seen in the chart above, I broke with that because:

1.      GOOG was retreating from its all-time 52 week high that it hit in early October.  The retreat is shown by the yellow line and the brown line shows the 52 week high.

2.      The technology sector was consistently reporting poor earnings calls this quarter.

3.      Many of the same questions hitting Facebook, Microsoft, Oracle and others were being asked of GOOG and like their brethren GOOG didn’t really have good answers.

4.      The option premiums showing in the option chain well above the 52 week high were very high.

5.      The two white lines at the top show our trade parameters.

If ALL 4 of the above facts had not been present, I would not have gone out on a limb like that.  Other than the trading a stock during earnings we followed our system:

1.      The trend line is going down, so we go with a Vertical Call Credit Spread.

2.      The underlying market price for our trade is at least 1.5 Standard Deviations away from the short strike sold.

3.      The probability calculator showed at least 85% probability of success – we were at 98.24% when trade put on.

4.       The ROI is at least 3-4%.  In this case 12.7%

5.      Our stock was on our list.  The list is in the archives as well as our tenets.

    

Trade #2:

GLD     171.50    Call     $ 0.19

GLD     172.50    Call     $(0.11)                       This gave a $0.08 Net Credit for a 8.00% ROI

The trades this week give us a 10.80% blended ROI.  This is a once in a GREAT LONG time return.  Weeks like this do not come along often.

1.      The probability calculator gave this trade a 93.4% success probability.

2.       Our new indicator the IV> HV was in our favor meaning that the IV (Implied Volatility) was greater than the HV (Historical Volatility).

3.      The trade was better than our minimum 3%.

4.      The overall trend was down so we go call side.

PAPER TRADE

Here is the Paper Trade from last week and our reasoning for getting into the trade:

RVBD     26.00     Call     $0.42

RVBD     27.00     Call   $(0.31)   This will give a $0.11 Net Credit for a 11.00% ROI

1.       The probability calculator hits in at 89.69%

2.      The Std Dev are between 1.0 and 2.0

3.      The overall trend is going downward so we look to go Call Spread

4.      This stock is not covered by Trademonster so I could not get the IV>HV indicator for tis one

5.      One of two things that is a little worry some about this stock is that the Implied volatility for the options is 132.5%  This is a very high number.  That is why we are putting this in the paper trade account so it won’t cost us real money.

6.      The other thing is that RVBD will report earnings this week.  Normally I do not trade a stock when it is coming up on earnings, but this looks attractive as any bumps + or – from past earnings would not push the underlying past our strikes.  Again this is why I am doing this in the paper trade account instead of the real money account.

Well, the paper trade was a success.  As I thought, there was a huge spike up on positive earnings, but it did not come close to our lower limit ending Friday at $23.07. 

COVERED CALLS

We have been doing covered calls on Vivus and McDonald’s.  We are continuing with these two stocks in our covered call adventure.

                                               

Symbol           Company       Stock     Option          Option            Initial              Annualized

VVUS             Vivus               20.06      Nov 23         .41                   2,676.00          18.38%*

MCD               McDonalds     88.72                                                   9,174.00             1.30%

* Changed this calculation from using the stock price at call option sell to using the initial investment.

VVUS – we did not put on another VVUS trade for the week as the option premium was just not there.  The stock closed Friday at $20.6 and looks like it is heading toward the recent support line of $17.46.  The only reason I am sticking with this one is that I know that this stock is extremely volatile – that is how we get the outrageous premium we get for the covered call each month.     I am not overly concerned about the stock price as long as I keep getting the great ROI on the option premiums.      

MCD came out with disappointing earnings last week.  As a result of the negative earnings the options premium has absolutely dried up.  So we still hold onto the stock and will look for option premiums to rebound up.  The food sector is getting hit hard recently with the buzz on Chipotle and MCD and YUM and others not looking good.  Worst case scenario we grab the dividend again in a couple of months.    

DIVIDEND STOCKS

Here is our Dividend Stock Portfolio:

Ticker Name                                                  Buy         Current      Date                Div

                                                                        Price           Price                               Yield  

 KO     Coke                                                         38.17      38.39       08/27/2012          2.71%

AGD   Alpine Global Dynamic Fund                    5.76        5.87       08/27/2012        12.18%

AOD   Alpine Total Dynamic Fund                      4.37        4.36       08/27/2012        14.80%

MO      Altria                                                        34.26      33.21       08/27/2012          5.17%

INTC   Intel                                                          22.87      21.26       10/01/2012          3.94%

HIX    Western Asset Hi Income Fund II          10.53      10.31       10/15/2012          9.44%         

Current Prices as of 10/19/2012 Closing Price

This week on market price we are down about $256.  Half of our portfolio gives us monthly premiums so this will help us grow the portfolio quickly.  AOD, AGD, HIX give us monthly premiums.

Each of these stocks carries a 15% stop on them, and we are nowhere near that on any of these stocks.  If 100 shares in each stock is held that will generate $416 in dividend revenue assuming no reinvestment.  This gives a 5.10% return.  This is a pretty good return in this market and it is very safe.  Two Blue Chips and two funds that are diversified in sectors and globally.  If reinvestment is used that number goes even higher.

I have developed a watchlist for this Portfolio.  These are stocks that basically meet the criteria we have: (1) a moat business model, (2) dividend of at least 3%, (3) solid fundamental analysis numbers.  Here is our watchlist:

                                                                       

Ticker Name                          Recent Price       Date                        Div Yield        Target Price

MSFT  Microsoft                         28.64          10/05/2012           3.12%         28.00

PG       Proctor and Gamble         68.57          09/21/2012           3.27%         62.50

JNJ      Johnson & Johnson          71.86          09/21/2012           3.56%         65.00  

MSFT – This is closing in and we will be poised to pull the trigger.    

JNJ – This took a slight downturn this week, but I am still waiting for more of a pullback.

PG – I might have to wait on this one a bit.  It is continuing the uptrend and is closing in on a 52 week high.  The slight pullback I saw was more of a quick consolidation. So now I just sit back and wait patiently for this stock to come back to Earth.  The last thing I want to do is buy at the high and wait for another high to come along.  I will be patient as the chart shows that $62 is long term support for this stock.  Also at this level that would raise our Dividend Yield to 3.75% AND give us lots of upside potential.

QUESTIONS

None at this time

 

DISCLAIMER:  Hashley Capital Management, LLC; as well as I are not giving any trading advice.  All data is historical in nature and is intended for use as an educational tool.  Trading in stocks and/or options is risky and can result in loss of capital. Stocks as well carry inherent risks and should be well researched before any buy decision is made.   There is no attempt to sell any brokerage services or act as a broker or dealer by Hashley Capital Management, LLC.  Any forward looking comments on this blog are not attempts to solicit business for Hashley Capital Management, LLC and are the opinion of Hashley Capital Management only.  If you choose to follow the same path and invest in the strategies and trades used by Hashley Capital Management, LLC after doing your own due diligence, that is your decision and yours alone. 

Reach me @:

Email:  hashleycm@yahoo.com

Twitter: @awagel01

Stocktwits:  awagel01

Or leave a comment on the blog

TTFN

Ash

Results for Week of October 12, 2012

Hello fellow traders,

Well, we went back to our familiar pattern this past week, back to the AAPL and GLD trades.  AAPL is sliding as the map app disaster is still unfolding.  GLD is still range bound but Friday was testing the downward side of the range.

I am pretty much healed up from the Blackbelt testing.  My hyperextended knee is feeling good and the fractured toe is no longer painful to walk on.  I did my first class last week and that was a lot of fun.  I really like the hyung or forms and that was my responsibility – teaching the new 1^st Dans one of their new forms.

Youngest child is now done with volleyball.   She had a blast this season.  The end of season tournament was cancelled when a couple of teams dropped out. The team dinner is this Friday and then the program banquet is in a couple of weeks.  She gets to dress up and man o man she loves that!!! 

Eldest daughter graduated Friday from Tech School.  Now she has a week off in leave then is off to her first duty station.  She is excited to get her career under way but wishes that she could be a little closer to civilization.  I like it because she is only a 12 hour drive from me.  I feel a road trip or two in my future!! 

Our boy is getting very inquisitive on some engineering things.  I know just enough to be dangerous.  My brother is the engineer.  I just picked up some stuff supervising cost engineers and just hanging out with them while I was in the plants.  He is also getting involved in the tech side of theatre at school.  It is funny how the girls love the stage and the boy loves the tech side.  I am just glad they are finding things they enjoy.

AAPL and GLD have been good to us for a while now.  AAPL’s continued downward slide has now created a good opportunity because we are seeing some buyers coming in the prop up the price for a day or two then the drop continues.  This up and down action gives us some premium that was not there two weeks ago. 

ANALYSIS

I am going to use some terminology here to help some of the newbie lurkers that have asked for a more technical bent so they could see what the terms mean.

We will tackle the AAPL trade first.    This is a vertical call spread.  We are short (selling) the 645.00 strike call and are long (buying) the 650 strike call.  The goal of this spread is for it to expire worthless.  My basic strategy is called a contrarian strategy.  I place trades in the opposite way I think the market is going.  In this example I think that APL will continue its downhill slide.  Therefore, I entered into a vertical call credit spread hoping that the price will stay below the 645.00 level.

AAPL     645.00     Call     $0.68

AAPL     650.00     Call    ($0.40)     This gave a $0.28 Net Credit for a 5.60% ROI

1.      We put this trade on Wednesday afternoon after watching the price action for the first part of the week.  Wednesday morning the price dropped through both the 20 and 50 Day SMA (Simple Moving Average).  This is when I decided to enter a trade.  This drop through both SMA lines had me thinking call spread.

2.      Now I look for a set of strikes that are at least 1.5 Standard Deviations from the underlying market price at the time of the trade.  The 645/650 Call spread fit that bill.    

3.      The Probability Calculator gave the 645/650 trade an 89.95% probability of success.   Our minimum for the probability calculator is 85%, but if I can go higher I will.  Basically this is telling me I have a 90% probability of success.  I will take those odds all day long.

4.      The IV > HV indicator also showed us that this was a good stock to put a spread on as IV>HV.  This gap continually narrowed as the week went on, so our premium was safe, and the time decay was working even more in our favor. 

5.      The price drop continued throughout the week.  That made our premium safer and safer as the week went on.  This is exactly the type of setup I like to see.  The goal in this system is to make it to Friday and not have to worry that much on our positions.  We had that in spades this week.    

Trade #2:

GLD     173    Call     $ 0.22

GLD     174    Call     $(0.13)    This gave a $0.09 Net Credit for a 9.00% ROI

The trades this week give us a 7.30% blended ROI.  This is a great return!!!

1.      Again, we put this trade on Wednesday afternoon after watching the price activity.  The price hovered around the 20 and 50 day SMA with a downward bias.  This is our clue to go the call spread route.  This means that the trend is going slightly down, but very slowly since the price was hovering around the SMA lines and the SMA lines are very close together.  Later in the week on Friday the price broke through the SMA lines and that confirmed our decision and made it a pretty stress free Friday.  Again, our goal is to have the spreads expire worthless.  That we keep the entire premium we collect (less commissions of course – gotta pay the broker!!!)

2.      The probability calculator gave this trade a 90.07% success probability.  I knew this one would have a higher probability since it was almost 2.0 Standard Deviations (Std Dev) from the underlying price at the time of trade. 

3.      Our new indicator the IV> HV was in our favor meaning that the IV (Implied Volatility) was greater than the HV (Historical Volatility).

4.      The trade was better than our minimum 3%.

5.      The overall trend was down so we go call side.

PAPER TRADE

This is one that hit my screen and I thought I would take a flyer and try it in the paper trade environ:

RVBD     26.00     Call     $0.42

RVBD     27.00     Call   $(0.31)   This will give a $0.11 Net Credit for a 11.00% ROI

1.       The probability calculator hits in at 89.69%

2.      The Std Dev are between 1.0 and 2.0

3.      The overall trend is going downward so we look to go Call Spread

4.      This stock is not covered by Trademonster so I could not get the IV>HV indicator for tis one

5.      One of two things that is a little worry some about this stock is that the Implied volatility for the options is 132.5%  This is a very high number.  That is why we are putting this in the paper trade account so it won’t cost us real money.

6.      The other thing is that RVBD will report earnings this week.  Normally I do not trade a stock when it is coming up on earnings, but this looks attractive as any bumps + or – from past earnings would not push the underlying past our strikes.  Again this is why I am doing this in the paper trade account instead of the real money account.

COVERED CALLS

We have been doing covered calls on Vivus and McDonald’s.  We are continuing with these two stocks in our covered call adventure.

                                               

Symbol           Company       Stock     Option          Option            Initial              Annualized

VVUS             Vivus               22.74                                                   2,676.00          14.3%*

MCD               McDonalds     93.50      Oct  100       .10                   9,174.00            1.3%

* Changed this calculation from using the stock price at call option sell to using the initial investment.

VVUS has rebounded significantly since last week, moving up almost 20% this week.  We bought back the Oct23 Call at .20 making a .12 profit, and are now waiting to see what happens over the next day or two to sell another one.  I want to see what the price action is before getting into another contract this close to expiration.  We have made money this month on the stock and we are getting close to breakeven on the stock portion.  If I get into another covered call on this stock I will put out another blog post detailing it.  Despite selling the call back early we are still on a pace to make more than 10% ROI for the year.  This is a ROI I will take any day.      

MCD looks like it is on the way back to the $100 mark.  WE have come back to show a gain on the stock portion of this covered call and it looks like our call premium is good.  The premium is at $0.00 on the bid side.  Ask side is $0.04 so even if we have to sell it back we are good.  This is working out just great for us.    

DIVIDEND STOCKS

Here is our Dividend Stock Portfolio:

Ticker Name                                                  Buy         Current      Date                Div

                                                                        Price           Price                               Yield  

 KO     Coke                                                     38.17      38.13       08/27/2012          2.71%

AGD   Alpine Global Dynamic Fund                    5.76        5.94       08/27/2012        12.18%

AOD   Alpine Total Dynamic Fund                      4.37        4.45       08/27/2012        14.80%

MO      Altria                                                     34.26      33.17       08/27/2012          5.17%

INTC   Intel                                                       22.87      21.73       10/01/2012          3.94%

HIX    Western Asset Hi Income Fund II            10.53      10.53       10/15/2012          9.44%         

Current Prices as of 10/15/2012 Closing Price

HIX is the latest addition to our Dividend Portfolio.  HIX is another closed end fund that yields a monthly dividend.  Currently the dividend is .0825 per share.  HIX is a high-yield bond fund that invests in non-investment grade bonds (read junk bonds).  Until Mr. Bernanke is dropped as Fed Chief HIX should be a good bet since he has stated that interest rates will be kept low until 2013.  Now if Obama loses then we will have to reevaluate this addition to our dividend portfolio as Romney’s campaign says they want long term interest rates to rise.

Each of these stocks carry a 15% stop on them, and we are nowhere near that on any of these stocks.  If 100 shares in each stock is held that will generate $416 in dividend revenue assuming no reinvestment.  This gives a 5.10% return.  This is a pretty good return in this market and it is very safe.  Two Blue Chips and two funds that are diversified in sectors and globally.  If reinvestment is used that number goes even higher.

I have developed a watchlist for this Portfolio.  These are stocks that basically meet the criteria we have: (1) a moat business model, (2) dividend of at least 3%, (3) solid fundamental analysis numbers.  Here is our watchlist:

                                                                       

Ticker Name                          Recent Price       Date                        Div Yield        Target Price

MSFT  Microsoft                         29.51          10/05/2012                         3.12%         28.00

PG       Proctor and Gamble         68.71          09/21/2012                         3.27%         62.50

JNJ      Johnson & Johnson          68.60          09/21/2012                         3.56%         65.00  

MSFT – This is close to our target and is heading down to it.  Hopefully soon it will be in our range.  This stock is literally a household name.  If you have a laptop or desktop computer you probably are running a version of Windows on it.  Also if you are like me your productivity suite is a Microsoft product.  Word is the standard business word processor, Excel is the standard spreadsheet, Access is the standard database system, Outlook is the standard mail program, and Power point is your default presentation software package.   MSFT has a lock on these markets.  The company is generating tons of cash and is a stable dividend payout stock.    

JNJ – I am still looking to get into this stock at $66.00 or lower.  The stock is on a slight uptrend again after a slight pull back.  There is a recent run from $62 to $68 and so I would like to split the difference and get in at $66

PG – I might have to wait on this one a bit.  It is continuing the uptrend and is closing in on a 52 week high.  The slight pullback I saw was more of a quick consolidation. So now I just sit back and wait patiently for this stock to come back to Earth.  The last thing I want to do is buy at the high and wait for another high to come along.  I will be patient as the chart shows that $62 is long term support for this stock.  Also at this level that would raise our Dividend Yield to 3.75% AND give us lots of upside potential.

QUESTIONS

None at this time

 

DISCLAIMER:  Hashley Capital Management, LLC; as well as I are not giving any trading advice.  All data is historical in nature and is intended for use as an educational tool.  Trading in stocks and/or options is risky and can result in loss of capital. Stocks as well carry inherent risks and should be well researched before any buy decision is made.   There is no attempt to sell any brokerage services or act as a broker or dealer by Hashley Capital Management, LLC.  Any forward looking comments on this blog are not attempts to solicit business for Hashley Capital Management, LLC and are the opinion of Hashley Capital Management only.  If you choose to follow the same path and invest in the strategies and trades used by Hashley Capital Management, LLC after doing your own due diligence, that is your decision and yours alone. 

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TTFN

Ash