12:45pm (EST)
We have a special situation brewing on one of our favorite stocks to trade. In September, a LEAP option trade made our subscribers 213% in a little over a month.
We like the risk/ reward and we are suggesting new positions at current levels on a stock we have done major research on. We are getting the EXACT same setup we did 3 months ago with some pending news possibly coming by the end of the month. The company’s CEO recently purchased 150,000 shares between $8.55-$9.12. The stock is currently down 9% on acquisition news, as is normally the case for an acquiring company, and is at $8.30.
Subscribers, check the Weekly Wrap Premium section/ Members Area for the update.
Special Note: We also have a Profit Alert for Krispy Kreme Doughnuts (KKD, $18.55, up $0.10). The winning trade gets our 2013 Track Record to 41-4 for the year.
MEMBERS AREA
New Trade!!!
Opko Health (OPK, $8.24, down $0.85)
Buy to OPEN March 10 calls (OPK140322C00010000, $0.70, down $0.25) LEAP OPTION
Action: Shares took a beating last week and support seems to be holding at $8.50 again. We went long back in September when shares were at support and made over 200% with these same March call options. We are looking for lightening to strike the shirts twice as we are expecting major news from the company this month.
CURRENT TRADES
Krispy Kreme Doughnuts (KKD, $18.55, up $0.10) Short Position
Original Entry Price: $18.92 (9/4/13)
Lowered Price from Selling Options: None
Exit Target: $16
Return: 2%
Stop Target: $26
Action: We are going to COVER our short on this trade and lock-in a small profit by buying the stock back. We want to lighten our Weekly Wrap Portfolio before yearend and we can always come back to the stock on a close below $18. This level has been serving as short-term support and we were looking for a close under this level last week.