ACTION:
Buy Discovery Laboratories (DSCO, $1.68, up $0.02) at current levels.
Dear Momentum Stocks Weekly Subscriber,
I have a New Trade on a stock that is already a current member of the Momentum Stocks Weekly portfolio.
The trade is on track to make 67% if shares reach my Price Target by mid-April. This is great news, obviously, but it is a covered call trade, and this means our gains will be capped if shares are “called away.”
The good news is that the shares are just above my recommended price from November 2014, and we can enjoy a continued rally without being “covered” by just buying the stock and not writing options on the position.
While the talking heads bash covered call trading, the returns can be tremendous if you know a company’s story and technical patterns. Additionally, just because you can or might be called away from a stock doesn’t mean you can’t establish new positions on strength.
Shares have recently broken several layers of resistance and volume has been building. This means news is likely pending. I believe we can make another 40%-50% by adding to our position at current levels.
Buy Discovery Laboratories (DSCO, $1.68, up $0.02) at current levels.
Action: I’m starting another position at current levels, as shares appear headed past $2.00 by mid-April.
All prices given in this update are current as 2:00 p.m. EST.
Every new Momentum Stocks Weekly recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.
Trade on!
Rick Rouse
Editor
Momentum Stocks Weekly