Weekly Wrap Profit Alert (KOG) for 6/26/2014

8:00am (EST)

The Weekly Wrap closed two more winners on Tuesday to run the track record to 18-4 for the year.

The whipsaw action in Kodiak Oil & Gas (KOG, $14.25, up $0.53) has been brutal following a test to $15 on Monday and then $13.63 on Tuesday.

I will keep the stock on my Watch List for a possible reentry above $15 but for now, the volatility needs to settle before getting into new positions.

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The Weekly Wrap Closed Trade Track Record for 2014 is 18-4, or 82% win rate (103-11, or 90% win rate, overall since the start of 2011)

Current Trades

Kodiak Oil & Gas (KOG, $14.25, up $0.53) Stock Trade

Original Entry Price:  $13.25 (4/14/14)
Lowered Price from Selling Options:  $13.25
Exit Target:  $15 (closed at $14 on 6/24/14)
Return:  6%
Stop Target:  $14 (Stop Limit)

September 15 calls (KOG140920C00015000, $0.80, up $0.10) LEAP Trade

Original Entry Price:  $.0.72 (4/24/14)
Exit Target:  $1.45 (Closed half at $1 on 6/23/14, half at 75 cents on 6/24/14)
Return:  22%
Stop Target:  75 cents (Stop Limit)

Action:  Shares made a nasty backtest to $13.75 on Tuesday after falling below $14 and triggering the stop limit.  Although there was a rebound on Wednesday, the trade is officially closed.

For the option trade, I suggested closing half the trade at $1 on Monday to lock-in profits.  The Stop Limit of 75 cents on the other half was triggered on Tuesday as well.