ACTION:

Take profits and sell to close the first half of the KBH October 16 calls at current levels.

Dear Momentum Options Subscriber,

I have a Profit Alert this afternoon on one of our current trades. Although I always shoot for triple-digit profits, I want to lock in the 95% gain we are sitting on to take a little risk off of the table.

We can still register a 100% return or better on continued strength in the stock, but the current gain in the option is too juicy to pass up.

 

KB Home (KBH, $16.11, up $0.45)

KBH October 16 calls (KBH151016C00016000, $1.00, up $0.20)

Entry Price: $0.52 (8/10/2015)

Exit Target: $1.05

Return: 95%

Stop Target: $0.65 (Stop Limit)

Take profits and sell to close the first half of the KBH October 16 calls at current levels.

 

All prices given in this update are current as of 2:25 p.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). 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