Capitol Gains Watchlist 10.14.2022

Dear Cap Gainers,

Below is the Watchlist Plus that I am watching from the original lists from Frank and Griff for names that are important.  Anytime option pricing or underlying pricing moves to an extreme or a significant event is at hand, I will add to our active list.

Right now I am looking for cheaper implied volatility, since that is the counter trend going on.  In my active watch list that will show up in green on the Sigma on the right.  Where Sigma is more expensive, I would be looking to sell options or sell what I own.

CCJ

CCJ sold off on the deal to buy Westinghouse’s Nuclear business.  I am very long term bullish on this name but we own near term puts close to the money and are short out of the money puts against them.  Implied vol looks cheap relative to the huge down move this week.

CVX

CVX and most energy stocks could not quite get to the 10 day uptrend.  Higher oil prices are keeping the names up but overall market sentiment is pulling them down.  Options are fairly priced here.

ENB

ENB pays a 10% dividend and is at the bottom of the range.  I think this makes a good addition to my div+ strategy as a 10% dividend looks very attractive.

F

F tried to make a move off of the bottom and I am looking to set up another broken wing butterfly.  Stock blew through our strike area.  F is at the bottom of the 1 year range and still makes an attractive long here.

GOLD

GOLD was green for us and 10 days of downtrend from there is now red.  GOLD is now down at the bottom of the 1 year price range.  I will look for a repair strategy next week.

TSM

Options are relatively cheap as TSM came out with great earnings.  With sentiment this bad, it is hard for stocks to move higher buying options. TSM is relatively trendless right now.