Oct 2015 – Portfolio Review (+ 21.91%)

Dividends earned in October 2015 = $260.10 * (Total dividends YTD = $2,988.94)

* Total dividends were a combination of $255 (regular distribution) + $5.10 (interest)

YTD Performance

Dividend Project Investment Portfolio = + 21.91 %
S&P 500 Index = + 0.99 %

I use S&P 500’s closing values right from the source… Standard and Poor’s website.

Under Armour… I’m back in

When I first bought into Under Armour on May 8, 2015 the stock closed at $79.08 and since then soared well past $80 to a high of even $105.89. Since then, there were only 2 meaningful sell-offs worth mentioning:

  1. Aug 24 2015 when UA hit a low of $80.12 but this was when the S&P500 lost about 10% within 5 trading days. To catch this low on Aug 24 you’d need to trade like a Ninja and try to hit your order close to this low.
  2. Nov 17 2015 when UA hit $84.19… this time the price was more stable so hitting this order would’ve been very likely.

I was watching UA for an entry since it started to drop in mid October, with my target of around $86. After dropping to a low of $88 in October, I finally got my entry on Nov 13th.

I bought 2018 call options with a $80 strike when UA was around $86.50. Since then, UA fell to a low of even $84 which hurt a bit, but I’m holding long expiry options so time is on my side.

Now onto the most important thing… Under Armour continued to pump out great earnings, yet the stock market decided to discount the stock. These are moments that separate the bold from the weak and create mind-blowing long term opportunities.

Time will tell how this options trade plays out, but there are very specific reasons why I believe in Under Armour (or said differently I would NEVER bet against them)… I will write up this post in the coming week.

The Market… A Tough Battlefield

I honestly thought with the flash crash of August that the bull market was at risk. The coming months proved differently, with huge gains in very short periods. I would still say we are in a period of high volatility and while I would generally remain cautious, it appears the market is being supported from significant downside pressure.

It will be important to see how the S&P500 holds up around key levels of 2090. If it breaks out, then the stage is set for a good start in 2016. If it breaks down, I will start to think whether or not to keep my UA call option, and possibly buy some put options to protect my portfolio.

The over-all market hasn’t been too kind in 2015. All I can do is hold myself to my disciplined investing strategy to continue generating returns and outperform the market.