ACTION:

Take profits and sell to close the second half of the EMR March 49 calls at current levels.

Dear Momentum Options Subscriber,

I have another Profit Alert this afternoon for our position in Emerson Electric (EMR). The stock has pulled back today, and the options opened below our Stop Limit at $0.90. Although I’m slightly disappointed we didn’t make a larger profit, this marks our 20th win of the year.

 

Emerson Electric (EMR, $47.80, down $0.54)

EMR March 49 calls (EMR160318C00049000, $0.80, down $0.20)

Entry Price: $0.60 (2/16/2016)

Exit Target: $1.20 (closed first half at $0.90 on 2/17/16)

Return: 42%

Stop Target: $0.90 (Stop Limit)

Action: Take profits and sell to close the second half of the EMR March 49 calls at current levels.

The Stop Limit at $0.90 hasn’t been filled, as the calls have only traded to a high of $0.88, but I’m electing to close the trade and take profits at this point ahead of the weekend.

I will keep EMR on my watch list for another possible trade, but, for now, we are out.

 

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