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Trade Alert: A Chance to Boost Your Winter Profits

A note from the senior managing editor…

Below, you will find a Sovereign Edge trade alert from Jeff Opdyke, the editor of Precision Profits.


Jocelynn Smith
Sr. Managing Editor, The Sovereign Society

Trade Alert:
A Chance to Boost Your Winter Profits

Two weeks ago, I sent you a trade alert on Columbia Sportswear (Nasdaq: COLM). The next day, shares tumbled as fellow retailers Skechers and Under Armour posted weak results. Clearly, this is a case of guilt by association.

Indeed, Columbia is cruising higher today after reporting strong earnings overnight. So now we’re locking in a triple-digit gain on half of our position:

Action to take: Set a Good ‘Til Canceled limit order to sell to close one half of your position in the COLM January 2016 $55 call option (COLM160115C00055000) at a price of $8.20 — or whatever price gives you 100% based on your original cost. The last trade in this option went off at $9. If your order is not filled by my next dispatch, I will update you on the trade.

The stock is moving around a lot today. So our orders might not be filled. But just leave them in place and I will update you as necessary.

The fact is that neither Skechers nor Under Armour are part of a winter-weather pattern. So just because they reported flea-bitten results for their summer does not have any bearing on what Columbia will do this winter. Indeed, Columbia reported better-than-expected results, and the shares shot up more than 11% this morning … meaning that our position that was down as much as 60% in value last Friday on the Under Armour/Skechers news, was up more than 100% a week later.

Until next time, good trading…

Jeff Opdyke
Editor, Precision Profits