Tyson Foods (NYSE: TSN) continues to rally — great news for the second half of our call option, which is up more than 100%.
The first half of our position already closed for a nice profit: Last Friday afternoon, I sent you an alert to lock in a 50% gain on our January $55 Tyson calls, and the order was triggered that same day.
Since the alert went out within the last hour of the trading day, we’re simply using the closing price as our exit price — and that represents a great, quick gain of 73.92% on the first half of our trade in less than a month.
If your 50% protective stops weren’t hit for any reason, go ahead and sell the first half of your position at the market today.
Since the second half is now up more than 100%, let’s stick to our profit-managing strategy of increasing our stops higher in line with our rising returns. That means we’ll be boosting the 10% protective stop order we set on Friday to a price that will lock in a 75% profit on the second half of this trade.
Remember to place a stop-loss order at a price that nets you a 75% gain based on your individual entry price. For our official position, that will be $7.30 since our entry price was $4.18.
Here’s your action to take:
|Action to Take|
|Sell Action to Take|
|Stock:||Tyson Foods Inc. (TSN)|
|Option Type:||Call Option|
|Order Type:||Limit Order|
|Duration:||GTC (Good ‘Til Canceled)|
|Trade Deadline:||Keep this order open until it is filled or canceled.|
That’s all for now, but remember to send me any questions you might have about the service, the system or the trading process. You can reach me at firstname.lastname@example.org. I’ll have another mailbag issue for you soon.
Until next time, good trading…
Editor, Earnings Drift Alert