Take profits and sell to close the MS August 28 calls at current levels.
Dear Momentum Options Subscriber,
After being down over 50%, our Morgan Stanley (MS) August 28 calls have made an incredible rebound. We went long just ahead of the Brexit news, thinking the financial stocks here in the United States would rally. While we were a tad early, I love to see trades come back after starting off on the wrong foot. I have plenty of other trades on my watch list to play a continued rally, but I wanted to reduce a little risk in the financial sector, as we still have our trade in Green Dot (GDOT) open.
Morgan Stanley (MS, $28.00, up $0.84)
MS August 28 calls (MS160819C00028000, $0.90, up $0.36)
Entry Price: $0.79 (6/23/2016)
Exit Target: $1.50
Stop Target: None
Action: Take profits and sell to close the MS August 28 calls at current levels to lock in profits.
I hereby disclose that I will be participating in the aforementioned trade(s).
Editor and Chief Options Strategist