11:55am (EST)
The slick talking pros are now saying “it’s a stock picker’s market” but hasn’t it always been?
We have a bevy of news today for our Weekly Wrap as we are locking in profits on another winning trade and starting new positions on a stock we really like.
Shares are currently at $2.60 and the we have done well finding hidden gems under $5. The last stock we profiled in the $2’s is now pushing $6 and we used the breakout past $3 to play options in our Daily on a trade that is pushing a 600% return. Seriously.
This stock also trades options and we see lightning striking twice as wee expect our latest trade to double.
Subscribers, check the Members Area for the updates and stay locked-and-loaded all week as we could have additional Trade Alerts coming your way.
MEMBERS AREA
New Trade!!!
Buy Discovery Laboratories (DSCO, $2.42, up $0.04) Stock Trade
Action: We are suggesting 2 ways to play Discovery Laboratories. The first is a stock trade at current levels. We have a longer-term Price Target of $4.50-$5 that would represent a double from current levels.
Buy Discovery Laboratories (DSCO, $2.42, up $0.04) Covered Call Stock/ Option Trade
Sell to OPEN April 3 calls (DSCO140419C00003000, $0.25, flat)
Action: The second trade is a covered call trade that provides some protection in case shares move lower or stay in a trading range. For every 100 shares purchased, sell one contract of the April 3 call option for 25 cents. This will lower the cost basis of the trade to $2.17. If shares are called away at $3 in mid-April the trade will make nearly 40% in 3 months. If they stay under $3, we can write another call option against the position.
Profit Alert!!!
Exact Sciences (EXAS, $13.25, up $0.39)
Original Entry Price: $13.55 (6/11/13)
Lowered Price from Selling Options: $12.40
Exit Target: $16+
Return: 7%
Stop Target: $10.45
Action: Close the trade at current levels.
We have been in this trade since June as we have been waiting for a breakout to the mid-teens. While it could still come, we are going to take profits at current levels as we want to lighten our portfolio in case the volatility picks up into January and February. We will keep the stock on our Watch List as a possible option trade down the road.