3:00 p.m. (EST)
Shares of Exact Sciences (EXAS, $17.37, up $0.28) have been slipping since this morning’s opening pop past $19.
I took advantage of the short-term move to lock in massive half profits on the surge and set Stop Limits on the other halves to protect profits.
While I was expecting shares to make a run past $20, the suit-and-ties read my opening bid to make 200%. They have been trying to cut into the gains ever since despite a ground-breaking DNA test that will help detect early colon cancer.
No worries. I always try to stay a step ahead of them in an ever ending chess battle.
Biotech stocks can change quicker than the winds at Wrigley Field so I made sure the trades would still make triple-digits if shares continued their pullback on a pop-and-drop. The call options made 107% and 113%, respectively, in 4 days.
The closed trades gave me room to add a New Trade for today so let’s get on it. Subscribers, hit the Members Area for the updates!
New Trade!!!
Fossil (FOSL, $102.00, down $1.21)
Buy to Open September 90 puts (FOSL140920P00090000, $1.05, up $0.15)
Action: I like these put options at current levels as shares appear to be headed for a drop below $100 and a test to $90. This is a high risk/ high reward trade as earnings are due out this week.
Current Trades
Exact Sciences (EXAS, $17.37, up $0.28)
September 18 calls (EXAS140920C00018000, $1.10, up $0.05)
Entry Price: $0.75 (8/8/2014)
Exit Target: $2.25 (closed half at $1.85 on 8/12/14)
Return: 107%
Stop Target: $1.25 (Stop Limit on other half)
October 19 calls (EXAS141018C00019000, $1.15, up $0.10)
Entry Price: $0.75 (8/8/2014)
Exit Target: $2.25 (closed half at $1.85 on 8/12/14)
Return: 113%
Stop Target: $1.35 (Stop Limit on other half)
Action: The Stop Limits of $1.25 on the September 18 calls and $1.35 on the October 19 calls have triggered as shares have given up the majority of their gains. While frustrating, the “sell-the-news” event has been in play since the opening run past $19 and why I set Stop Limits on the other halves.
I will keep the stock on my Watch List to play another possible call option trade in case $20 clears down the road. For now, I’m back on the sidelines.