2:40pm (EST)
We have a 3 New Trades for our Weekly Wrap on three stocks we believe will easily return 10%-20% over the next few months.
We are going to write covered calls on one of the trades and for the other two we are suggesting buying the stock without writing call options as both stocks are due for a much higher explosion.
Subscribers, check the members Area/ Weekly Wrap Premium section for the New Trades!
MEMBERS AREA
New Trades!!!
Buy Hercules Offshore (HERO, $4.35, up $0.05)
Sell to OPEN May 4 calls (HERO140517C00004000, $0.55, flat)
Action: The bears have been attacking Hercules as shares are hovering near 52-week lows. There is risk to $4 and why we are selling the May 4 calls to lower our cost basis to $3.80.
If shares hold $4 by mid-May the stock will be “called-away” and the return will be 5%. If shares are below $4 next month, we can write another call option to lower the cost basis even further.
Buy Kodiak Oil & Gas (KOG, $13.25, up $0.24)
Action: Shares are on the verge of a major breakout. We have provided daily coverage on the stock since early February for the Daily newsletter and shares are in a strong uptrend.
Buy RF Micro Devices (RFMD, $7.78, up $0.03)
Action: We have covered this company in our Weekly Wrap and we should have started buying shares when they were below $6. We still believe the stock will trade to $10 and we like it at current levels.