MomentumOptionsTrading.com Weekly Wrap Trade Update (DSCO)/ Profit Alert (RFMD) for 4/30/2014
12:45pm (EST)
We have an update for one of our current trades for our Weekly Wrap portfolio.
We also have a trade that has made our subscribers a sweet double-digit gain in 2 weeks so let’s go ring the register!
Subscribers, check the Members Area/ Weekly Wrap Premium section for the Profit Alert!
MEMBERS AREA
RF Micro Devices (RFMD, $8.60, up $0.51)
Original Entry Price: $7.78 (4/14/14
Lowered Price from Selling Options: $7.78
Exit Target: $10 (closed at $8.60 on 4/30/14)
Return: 11%
Stop Target: $5
Action: CLOSE the trade at current levels.
Our goal is to make monthly double-digit profits and with today’s 7% pop, let’s take profits. We can still get back in the stock at a later date as we think we can get shares cheaper in June. This is one of the reasons we did not write covered calls as we expected a good report and used the stock as a safer way to play the move instead of options.
Discovery Laboratories (DSCO, $1.83, down $0.12) Covered Call Trade
Sell to OPEN June 3 calls (DSCO140621C00003000, $0.15, flat)
Original Entry Price: $2.42 (1/7/14)
Lowered Price from Selling Options: $2.02
Exit Target: $4.50-$5
Return: -11%
Stop Target: None
Action: We are going to sell the June 3 calls for 15 cents to lower the cost basis for the trade to $2.02. If shares are “called-away” at $3 in mid-June the trade will make 20+%.