We’re kicking off our new earnings season with another 50% gain.
Yesterday, our put options on Mattel (Nasdaq: MAT) climbed past 50%, which means our limit order to sell half our position at a 50% gain was triggered.
We grabbed this option to benefit from the downdraft that shares typically experience after Mattel posts poor earnings (like it did last Thursday) — and that’s exactly what happened.
If your orders weren’t hit for any reason, go ahead and sell half of your position at the market.
As part of our profit-managing strategy, we’re now going to place a stop-loss order to secure at least 10% on the second half of the position.
Keep in mind that the trade directions below are based on our official entry price of $1.40. 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, and we want to profit even more from Mattel’s drop.
Here’s your action to take:
|Action to Take|
|Sell Action to Take|
|Stock:||Mattel Inc. (MAT)|
|Option Type:||Put Option|
|Action:||Sell to Close|
|Order Type:||Stop-Loss Order|
|Duration:||GTC (Good ‘Til Canceled)|
|Trade Deadline:||Keep this order open until it is filled or canceled.|
I’m excited we’re continuing to collect winners — and that the system is working well for all of us. But please continue to reach out with your thoughts about the trading process.
I would love to hear how you did on Mattel. What were your gains, and is the process working for you? Just as importantly — are you having fun? I’d greatly appreciate it if you let me know by emailing me at email@example.com.
As always, I look forward to hearing from you.
Elsewhere in the Portfolio
The calls we bought on Juniper Networks (NYSE: JNPR) last Friday were filled — so we’re officially in the position. Our official entry price is $1.
Remember, for our entry point, we take the average of the price a minute after the alert broadcasts and one hour later. The goal is to capture the average entry point of everyone making these trades.
Juniper is up about 20%, while our two other open positions are down. But there’s no need to worry about those. There’s still some time for each trend to play out, so we’ll remain patient and look for the drift to carry the stocks in our direction.
We are still in the heart of earnings season, with about 20 companies on our list set to report earnings in the next seven days. So pay close attention to your inbox as there are several possible trades that could be triggered each day.
That said, I am traveling in Europe next week for research. If trades are triggered and I am in meetings, you will hear directly from my team.
Until next time, good trading…
Editor, Earnings Drift Alert