ACTIONS:

Buy to open the FTNT March 32 calls (FTNT150320C00032000, $1.00, up $0.15).

Sell to close the FTNT December 29 calls (FTNT141220C00029000, $0.50, up $0.40).

 

Dear Momentum Options Subscriber,

I have an important update to one of our current trades, as the call options are zooming. I mentioned that this trade could come down to the wire, but the 400% surge and rebound from $0.10 to $0.50 is too good to pass up.

I mentioned that I could use a longer-term call option on a breakout, so I am also adding a New Trade to play that move higher.

 

New Trade

Fortinet (FTNT, $29.23, up $0.75)

Buy to open the FTNT March 32 calls (FTNT150320C00032000, $1.00, up $0.15).

I like these call options as a continued way to play the run to blue-sky territory.

 

New Sell

Fortinet (FTNT, $29.23, up $0.75)

FTNT December 29 calls (FTNT141220C00029000, $0.50, up $0.40)

Entry Price: $0.95 (9/2/2014)

Exit Target: $0.50

Return: -47%

Stop Target: None

Sell to close the FTNT December 29 calls (FTNT141220C00029000, $0.50, up $0.40).

The calls are up 400% today and are now “in the money,” but the options expire tomorrow.

I could possibly stretch this trade into Friday’s open and set a Limit Order at $1.00, but I am closing it at current levels given today’s incredible rebound.

The $0.50 in premium will allow me to finance the New Trade listed above.

 

All prices given in this update are current as of 2:45 p.m. EST.

Every new Momentum Options 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
Editor and Chief Options Strategist
Momentum Options