1:35pm (EST)
I have another Profit Alert for the Weekly Wrap on a stock that has longer-term potential to DOUBLE.
Shares are just south of $3 and the company recently received a buyout offer north of $6 that they declined.
I have recommended 2 trades that have made 16% and 14% and still have another position for the portfolio that’s open. I may start another position if shares hold $2.75 or dip to $2.50.
This gets the track record for the Weekly Wrap to 20-4 for the year.
I also have an update on Apple and a NEW TRADE as well.
The Weekly Wrap Closed Trade Track Record for 2014 is 20-4, or 83% win rate (105-11, or 91% win rate, overall since the start of 2011)
NEW TRADE
Buy Pizza Inn Holdings (PZZI, $6.00, down $0.01) Stock Trade
Original Entry Price: $6 (7/9/14)
Lowered Price from Selling Options/ Dividends: No options available
Exit Target: $8
Return: 0%
Stop Target: $4
Action: Shares traded to a low of $5.97 on Tuesday. I want to start a fresh position at current levels.
Current Trades
Apple (AAPL, $95.35, flat) covered call/ stock trade?
Sell to OPEN July 97 calls (Weekly) (AAPL140725C00097000, $1.85, flat)
Original Entry Price: $93.10 (6/30/14)
Lowered Price from Selling Options/ Dividends: $91.25
Exit Target: $120
Return: 2%
Stop Target: $85
Dividend. Yield: 2.1%
Action: I wanted to sell some options on Tuesday’s pop to $96.80 but got greedy as I also wanted to see $97.50 trigger. I said to wait until shares cleared $95 before writing options so I don’t want to miss this opportunity to possibly lock-in a 5% gain in 3 weeks. By selling these options, it will lower the cost basis of the trade to $91.25.
Apple could continue to resume its uptrend over the next 2 weeks and shares are called-away at $97 I can start another position. Otherwise, the premiums can really start to add up by selling these weekly call options to get the cost of the trade into the $80’s.
Profit Alert!!!
Limelight Networks (LLNW, $2.92, up $0.06) stock trade
Original Entry Price: $2.50 (6/4/14)
Lowered Price from Selling Options: None
Exit Target: closed at $2.90 on 7/8/14
Return: 16%
Stop Target: $2.90 (Stop Limit)
Action: Shares fell below $3 to start the week and tested $2.81 on Tuesday. Support at $2.75 is holding but the Stop Limit of $2.90 triggered on Tuesday on the 6/4 trade. While disappointed, protecting profits is crucial in choppy markets.
I still have an open position for the Weekly Wrap on Limelight that I expect to hold for the longer-term that was started at $3. I’m expecting $2.75 to hold as support.