9:10am (EST)
NetApp (NTAP, $18.36, down $0.48) has had a great week and I wanted to update the two trades we had going on. On Wednesday, around noon, I sent out a blog update on the stock when it was at $18.65 and talked about the strength the shares were showing. Later that day the stock went on to hit a high of $19.36.
We had an exit target of $2.20 for the May 17.50 calls (NULEW, $1.55, down $0.40) which were profiled on April 4th at $1.10. The calls were at $1.90 and I knew if we got over $19 our target would be triggered. The calls hit a high of $2.30.
The May 20 calls (NULED, $0.60, down $0.25) gave us an incredible 150% return from our entry price of 40 cents and I said they had a great shot of hitting $1.00. Mission accomplished.
These options took a slight hit yesterday but are still up 50% from our entry points. I would’ve liked to have kept the trades “open” because they could still do well but when our 100% return was hit, it was time to cash out.
It comes at a good time because I am trying to wind down some positions before I go on vacation. Yes, ladies and gents, I am taking next Thursday and Friday off to go to the Jazz & Heritage Festival down in New Orleans. Can’t wait. I won’t promise anything but I might do a live update.
Another one of my trading rules is to never have any open positions when you go on vacation. The trades you do leave open you have to make sure your stops and exit points are in place because you may not have the time or resources to check the market while you are on vacation.
As we head to the opening bell, the market is set to open higher with futures looking good.
Rick Rouse
Rick@OptionsMentoring.com
