3:10 p.m. (EST)
I have a New Trade for the Daily on a stock that is familiar to the portfolio. The options are trading for 45 cents and could double if shares make a move above $80 over the next month or so. I am also ringing the register on another double-digit winner that returned option traders 33% in less than a week. Subscribers, check the Members Area for latest action!
Closed Trades for 2014: 73-37 – the Weekly Wrap is 22-4 (85%) for 2014 (107-11, or 91% win rate, since 2011) and is designed for traders that want to use options with less risk. All trades are dated and time stamped so new subscribers can look at the past history to see how the trades have played out.
Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades. Please remember, ALL “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one. I will send out a “Profit Alert” or “New Trade” if I want you to close a position OR if a new trade comes out. Otherwise, follow instructions at all times in the 9am and 12pm-1pm updates. Also, I will usually give you a heads-up if I think I’m going to send an email outside of these time frames.
New Trade!!!
CVS Caremark (CVS, $78.33, down $0.79)
Buy to OPEN September 82.50 calls (CVS140920C00082500, $0.45, down $0.16)
Action: I like these options at current levels for a possible run past $80.
Current Trades
Regal Entertainment (RGC, $20.03, up $0.34)
August 20 puts (RGC140816P00020000, $0.40, down $0.05)
Entry Price: $0.30 (7/24/2014)
Exit Target: $0.60-$0.90
Return: 33%
Stop Target: None
Action: Close the trade at current levels.
I mentioned I wanted to be out of these options this week because the time premium will start to erode. I wanted to see shares trade lower today but they have been in an uptrend. I can always come back to this trade as well on a break below $19.50, but for now, I suggest locking-in profits.