12:30pm (EST)

OceanFreight (OCNF, $1.88, up $0.09) had its 15-minutes of fame as the stock hit a high of $2.10 earlier this morning. I mentioned last night to look for an exit above $2 and we were right on point.

The December 2.50 calls (QZVLZ, $0.65, unchanged) traded as high as 90 cents after opening at 80 cents. They were going for 40 cents on Monday and we nabbed our triple-digit return in just three days. Awesome.

These calls can still be traded but as you can see they are getting cheaper by the minute. The calls don’t expire for another 7 months but we didn’t plan on hanging around that long, now did we? There will be a time to trade them again; next week, next month, I don’t know but for now we move on.

Same thing with Cisco Systems (CSCO, $15.56, down $0.31). The July 19 calls (CYQGA, $0.80, down $0.18) were profiled to use with a covered call strategy but some of you got in at 60-65 cents on Monday. Yesterday they hit $1.20 which was good for a double and today they opened at $1.04 which is still 40%.

The action is fast and furious and we have a lot of moving parts right now. However, wait for your entry and exit points and don’t lose sight of the big picture. These positions had longer option expiration dates and when you play with these options it’s okay to take your profits quickly.

The Dow is still holding a positive gain of 12 points at 8,486 but was up triple-digits earlier today. Still, the bulls have had an impressive week….

Rick Rouse