For every 100 shares of RLYP you own, sell to open one RLYP March 30 call (RLYP160318C00030000, $0.65, up $0.05) at current levels to create a covered call against the RYLP stock position.


Dear Momentum Stocks Weekly Subscriber,

I have an update and action to take for one of our current trades. I recommend opening a covered call against our Relypsa (RLYP) shares to help lower the cost basis.


Relypsa (RLYP, $19.13, up $0.81)

Sell to open the RLYP March 30 call (RLYP160318C00030000, $0.65, up $0.05)

Original Entry Price: $28.29 (12/28/2015)

Lowered Price from Selling Options: $25.49

Exit Target: $30.00+

Return: -25%

Stop Target: $14.00

Action: For every 100 shares of RLYP you own, sell to open one contract of the RLYP March 30 calls that are currently trading for $0.65. This will lower the cost basis of the stock to $25.49.


All prices given in this update are current as of 11:50 a.m. EST.

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