Trade Alert: A 50% Gain in Juniper

Today, we’re grabbing a 50% profit in less than two weeks and changing our stop in another trade. So let’s get right to it.

First, the gains … This morning, our Juniper Networks (NYSE: JNPR) call options topped 50%, triggering our orders to sell half of our position for a 50% gain.

If your orders weren’t hit for any reason, go ahead and sell half of your position at the market.

Then, as part of our profit-managing strategy, let’s place a stop-loss order to protect a 10% gain in the second half. I’ll look to increase it as the gains keep climbing.

Keep in mind that the trade directions below are based on our official entry price of $1. So be sure to place your stop-loss order at whatever price nets you a 10% gain based on your individual entry price — and remember to use a stop-loss order. Otherwise, your trade could be triggered right away.

Here’s your action to take:

Action to Take
Sell Action to Take
Stock: Juniper Networks Inc. (JNPR)
Option Type: Call Option
Expiration: Apr-21-2017
Strike Price: $27
Option Symbol: JNPR170421C00027000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $1.10
Trade Deadline: Keep this order open until it is filled or canceled.

As always, I would love to hear how you did on this quick-hit trade. What were your gains, and is the process working for you? I’d greatly appreciate it if you let me know by emailing me at earningsdrift@banyanhill.com.

I look forward to hearing from you.

New Stop-Loss Order for Netflix

Now let’s move on to managing our Netflix (Nasdaq: NFLX) calls.

Those $140 February call options are expiring this Friday, and they’re around breakeven right now. That could easily turn into a nice profit by the end of the week as the drift kicks in, so instead of closing the calls early, let’s cancel our standing orders to sell half at 50%. Then, let’s place a stop-loss order to minimize our losses at 15%. (For our portfolio, that means a price of $4.35.)

With this strategy, we are limiting our potential loss to a manageable number, while allowing the options to ride higher if the stock continues moving up as it has been. If that happens, I will be sending further dispatches this week to reset our stop-loss order at higher and higher prices so that we can lock in a gain, hopefully.

So pay attention to your email this week because I could be hitting you up several times.

Here’s your action to take now:

Action to Take
Sell Action to Take
Stock: Netflix Inc. (NFLX)
Option Type: Call Option
Expiration: Feb-17-2017
Strike Price: $140
Option Symbol: NFLX170217C00140000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $4.35
Trade Deadline: Keep this order open until it is filled or canceled.

Update on Last Week’s Buys

Before I sign off, a quick update.

Last Wednesday, we entered two new trades: call options in United Rentals (NYSE: URI) and put options in Akamai Technologies (Nasdaq: AKAM).

Both of those options traded below their respective buy-up-to prices — $10.70 for United Rentals and $6.20 for Akamai — so we are officially tracking these positions. Our official entry prices are $10.15 and $5.05, respectively.

I’ll continue to monitor these positions and let you know whenever any action is needed. And remember to keep an eye out for new trades. There are a number of companies reporting earnings this week, so we could be entering a few positions if my trading parameters are met.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert