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