12:35pm (EST)
We have action to take on 2 trades in our Weekly Wrap newsletter that have returned us a nice double-digit return while the other is a single-digit return. We are only taking HALF profits on the trade that is up 26% as we are expecting shares to breakout to blue-sky territory but in case they don’t we want to ensure we walk away from our options trade with a profit.
Our Track Record for the Weekly Wrap is now 9-1 for 2014, 94-8 over a 3-year period.
Subscribers, check the Members Area/ Weekly Wrap Premium section for the update and stay close to your email inboxes into the close in case we have additional Profit Alerts or possible New Trades! We will be out with our Daily shortly.
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H&R Block (HRB, $31.46, down $0.07)
April 32 calls (HRB140419C00032000, $1.20, flat) LEAP Option
Original Entry Price: $0.95 (11/5/13)
Exit Target: $1.90+
Return: 26%
Stop Target: None
Action: Close HALF the trade at current levels.
Shares have reached resistance and our near-term target of $32 and while we are hopeful there will be a breakout in coming weeks, let’s lock-in HALF profits at current levels in case there isn’t.
Sonus Networks (SONS, $3.76, up $0.02)
Original Entry Price: $3.73 (9/9/13)
Lowered Price from Selling Options: $3.73
Exit Target: $5
Return: 1%
Stop Target: $2.50
Action: Shares are up 15% for the week and we have been in the trade for 5 months. Although we still believe shares can still clear $4 and possibly push $5, we are moving on to look for a better trade.