Stop Limit triggered on Aruba Networks (ARUN, $18.77, up $0.06) Covered Call Trade.


Dear Momentum Stocks Weekly Subscriber,

This morning’s pullback has triggered one of the Stop Limits that was set on a profitable trade to protect profits.

The covered call trade made 3% over a six-week timeframe.  A single-digit gain might not look impressive, but, when annualized, the return is better than 20%.

Hitting home run returns (50%-100%) are great, but monthly singles (3%-9%) on covered call trades also do their part to help improve portfolio performance.


Aruba Networks (ARUN, $18.77, up $0.06) Covered Call Trade

Original Entry Price:  $19.24 (10/17/14)

Lowered Price from Selling Options:  $18.04

Exit Target:  $25+

Return:  3%

Stop Target:  $18.60 (Stop Limit)

The Stop Limit of $18.60 triggered shortly after the open on the dip to $18.55. I will keep ARUN on my Watch List for another possible opportunity down the road, but, for now, I’m out.


All prices given in this update are current as of 10:10 a.m. EST.

Every new Momentum Stocks Weekly recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!


Rick Rouse
Momentum Stocks Weekly