Yesterday, I sent you an alert to safeguard your Cedar Fair (NYSE: FUN) gains ahead of today’s earnings report … and it was the right call. But there was a mistake in the language of the trade I gave you.

This morning, Cedar reported record revenues for 2014 but it failed to live up to expectations on earnings per share because of certain cost items. Investors initially bid up the stock, but it has since fallen slightly and is down 0.21% at the moment. This has led to some volatile trading in the options market, which my dispatch yesterday aimed to protect us from.

In that dispatch, however, I wrote that I wanted you to set a “limit order” at $7.30 on our Cedar Fair June call options. It was my intention for you to set a “stop order,” but we missed that wording in editing.

In this case, it worked in our favor.

With a stop order, your options would have been stopped out this morning at $7.30 with a 92% gain. But, if you followed my instructions to use a limit order, your options would have been executed yesterday afternoon in the range of $8.40, which is where the option closed. At that price, we’ve locked in a 121% return.

Including the 129% gain we took when we closed the first half of this trade on January 26, we have now exited Cedar Fair with a nice triple-digit gain in just two months.

If your options were not executed, go ahead and close them at the market. At last glance they were trading at an $8.10 bid, $8.70 ask. Given that our original cost was $3.80, you will still be able to close out with a gain exceeding 100%.

Until next time, good trading…

Jeff Opdyke
Editor, Precision Profits