Trade Alert: A 100% and 10% Gain

This morning, our protective stop-loss orders on two positions were hit — F5 Networks and Target — handing us nice gains of 100% and 10%.

I also have a trade to manage another position, but first, let’s discuss the gains…

The 100% gain came from the second half of our F5 Networks calls — and in just over a month. Remember, we closed the first half of this position after just three days for a 50% gain. The second half continued to rally, so we adjusted our protective stops higher, allowing us to capture this 100% gain.

If your orders were not hit for any reason, go ahead and close the position now since I will no longer be following the trade.

As for Target, we previously captured a 50% gain on the first half in about a week. We then placed a stop-loss order to protect a 10% gain in the second half — and that order was hit today. The stock’s rally has petered out, so we’ll gladly capture an overall gain of 30% in just two weeks.

Again, if your orders were not filled, go ahead and close them now since I’ll no longer be following the position.

These profits bring us to a string of 14 winners out of 16 trades since we started this beta test … with some gains reaching the triple digits. I’ve been having fun shaping this service with your help, and I hope you have too.

So as always, I would love to hear how these trades panned out for you. What gains were you able to make in F5 Networks and Target — and were you pleased with the process for both trades?

I’d greatly appreciate your feedback, so please email me at earningsdrift@sovereignsociety.com.

Now, for today’s action…

Preserve Capital in Juniper

Today, we’re also going to adjust our standing stop-loss order on Juniper Networks Inc. (NYSE: JNPR) to trigger at a 36% loss (instead of a 75% loss).
Since we placed that stop-loss order on our calls, the stock has inched upward again. In fact, by sticking with our strategy of using a 75% stop-loss instead of simply jumping out, we’ve nearly cut our possible loss in half.

So let’s go ahead and move that stop-loss order to protect more capital.

To adjust your order, place the stop at $0.50 now, or whatever nets you a 36% loss.

Action to Take
Sell Action to Take
Stock: Juniper Networks Inc. (JNPR)
Option Type: Call Option
Expiration: Dec-16-2016
Strike Price: $27
Option Symbol: JNPR161216C00027000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $0.50
Trade Deadline: Keep this order open until it is filled or canceled.

That’s all for today.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert