Trade Alert: A 50% Gain in 3 Days

In just three trading days, we grabbed another 50% gain!

Our call options on Lam Research (Nasdaq: LRCX) hit our 50% mark on Friday, and they have continued to rally today. If you placed a limit order to sell half the position for a 50% gain when we entered this trade, well done for locking in your gains.

If your limit order wasn’t triggered for any reason, go ahead and sell half at market, and then follow the trade instructions below.

See, we are up over 60% on the second half of our trade. And that means it’s time to place a stop-loss order to preserve our gains.

Sticking with our conservative strategy, we will place a stop to protect a 40% return. This gives the option room to run higher — while allowing us to secure a sizable gain if prices pull back.

Based on our official entry price of $5.25, we will be placing the stop at $7.35 in the portfolio to preserve a 40% profit. You should place your stop at whatever nets you a 40% gain based on your individual entry price.

Here’s your action to take:

Action to Take
Sell Action to Take
Stock: Lam Research Corporation (LRCX)
Option Type: Call Option
Expiration: Jun-16-2017
Strike Price: $135
Option Symbol: LRCX170616C00135000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $7.35
Trade Deadline: Keep this order open until it is filled or canceled.

I also have a quick request. This is one of the first trades within our new earnings season, so I want to check in on the trading process. Were you able to get into this trade? What returns did you collect? And most importantly, are you still having fun with the Earnings Drift Alert system?

Send me your thoughts at

That’s all for today. But we have over two dozen companies on our list set to report during this week, so pay close attention to your inbox as we could have several trade alerts this week.


Chad Shoop, CMT
Editor, Earnings Drift Alert