ACTIONS:
Sell to open the BBRY March 11 weekly calls (BBRY150306C00011000, $0.24, up $0.05) at current levels.
Sell to open the JDSU March 14 monthly calls (JDSU150320C00014000, $0.23, down $0.02) at current levels.
Dear Momentum Stocks Weekly Subscriber,
I have two trade updates for the portfolio today, as it’s time to write a couple of covered calls to lower our cost basis.
BlackBerry (BBRY, $10.72, up $0.21)
Sell to open the BBRY March 11 weekly calls (BBRY150306C00011000, $0.24, up $0.05) at current levels.
Original Entry Price: $10.03 (1/29/15)
Lowered Price from Selling Options: $10.03
Exit Target: $12+
Return: 7%
Stop Target: $8
Shares tested $10.80 on Wednesday following the company’s announcement that it would be working with Google (GOOG). Today’s high has reached $10.95. With $11 serving as short-term resistance, we can sell these call options to lower our cost basis to $9.79.
These are the weekly options that expire next Friday, March 6, and if shares are above $11, the position will be “called-away.” We can start a new position in BBRY if this is the case, as I do believe that shares are headed to the mid- to high-teens this year.
If the trade is called away at $11, the return will be 12%.
JDS Uniphase (JDSU, $13.31, down $0.08)
Sell to open the JDSU March 14 monthly calls (JDSU150320C00014000, $0.23, down $0.02) at current levels.
Original Entry Price: $14.07 (12/19/14)
Lowered Price from selling options: $13.77
Exit Target: $18+
Return: -3%
Stop Target: $10
Sell to open the JDSU March 14 monthly calls at current levels to collect the $0.23 premium. These are the regular monthly calls that expire on March 20. This will lower the cost basis to $13.54. If shares are called away in late March at $14, the trade will make 3%.
All prices given in this update are current as of 2:55 p.m. EST.
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
Editor
Momentum Stocks Weekly