MomentumOptionsTrading.com Weekly Wrap New Trades (HBP, CUBE)/ Trade Updates/ Profit Alert (KOG) for 6/23/2014

 3:45pm (EST)

The Weekly Wrap continues to turn out winners just like the Daily.  After waiting 2 months, it’s time to ring the register on half the LEAP option trade I recommended as it is up nearly 40%.

I also have a 2 New Trades and updates on 2 current positions.

Subscribers, hit the Members Area for the updates.

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The Weekly Wrap Closed Trade Track Record for 2014 is 16-4, or 80% win rate (101-11, or 90% win rate, overall since the start of 2011)

New Trades!!!

BUY Huttig Building Products (HBP, $4.30, down $0.20) stock trade

Action:  This is a small-cap stock with a market-cap just over $100 million.  The company has been in business for over 125 years and is a long-term bet on a continued “housing recovery”.  Shares have been publicly traded for 5 years and have gone undiscovered by the Wall Street pros.  Buy at current levels but use limit orders to get the best fills.

BUY CubeSmart (CUBE, $18.62, down $0.16)

Action:  This was a recommendation from last year that made a nice double-digit return in under 3 months.

I brought you their story in the low teens at $13.  Shares have been in a tight trading range for months but are on the verge of a breakout.

Options do trade on CubeSmart but I would like to see a run past the 52-week high of $19.69, or $20 before making this a covered call trade.  The stock also yields 3%.

Current Trades

Kodiak Oil & Gas (KOG, $14.49, down $0.02)

September 15 calls (KOG140920C00015000, $1.00, down $0.05) LEAP Trade

Original Entry Price:  $.0.72 (4/24/14)
Exit Target:  $1.45 (Limit Order on HALF)
Return:  39%
Stop Target:  75 cents (Stop Limit)

Action:  Close HALF the trade at current levels to lock-in profits.  Keep the Stop Limit of 75 cents on the other half.

Alexza Pharmaceuticals (ALXA, $4.40, down $0.10) Covered Call Trade

Sell to OPEN September 5 calls (ALXA140920C00005000, $0.35, down $0.05)

Original Entry Price:  $5.53 (3/4/14)
Lowered Price from Selling Options:  $5.03
Exit Target:  $6+
Return:  -10%
Stop Target:  $3

Action:  Sell these calls for 35 cents to lower the cost basis of the trade to $4.68.  If shares are called away at $5 by mid-September the trade will make 7%.

Discovery Laboratories (DSCO, $1.73, down $0.01) Covered Call Trade

Sell to OPEN October 2 calls (DSCO140101900002000, $0.35, flat)

Original Entry Price:  $2.42 (1/7/14)
Lowered Price from Selling Options:  $2.02
Exit Target:  $4.50-$5
Return:  -14%
Stop Target:  None

Action:   Sell these calls to lower the cost basis of the trade to $1.67.  If shares are called away at $2 by mid-October the trade will make 20%.