Yesterday, I sent you an alert to lock in gains of more than 50% in three positions. Today, we lock in another, this time a 100% gain.
Action to take: Set a Good ‘Til Canceled limit order to sell to close the TSN January 2016 $42 call option (TSN160115C00042000) at $6.80. At last glance, it was trading at $7.20. Keep this order open until it is filled.
This will secure us a nice 100% gain. And remember to set your order at whatever price gives you a 100% gain based on your original entry price.
Now, I have a second trade for you as well, to assure that we preserve the huge gain we have in Toro Corporation (NYSE: TTC).
Toro, a leading maker of snowblowers and lawn maintenance equipment, has been on the rise as well — pushing our calls higher as Toro’s winter uptrend played out. As you might remember, we’ve already sold half of our Toro position with a 100% gain back in September. We also initiated a protective stop-loss at 125% on the remaining half of that position earlier this month. But since the stock has been steadily climbing, those orders never got filled.
Now our options are up nearly 190%!
So, today, I want you to adjust your old stop-loss order: We are going to increase it to 150% to secure an even larger gain.
Action to take: Set a protective stop-loss on the TTC March 2016 $70 call option (TTC160318C00070000) at $6.90. At last glance, it was trading at $7.95. Keep this order open until it is filled.
By doing this, we’re locking in a 150% return in the event the shares retreat. If the shares continue to run higher, we will continue to benefit — and we will adjust our stop-loss order accordingly.
Profits From Yesterday’s Trades
Now, back to the trades from yesterday. Let me recap the outcome…
We ended up locking in half of our calls on Vail Resorts (NYSE: MTN) for a profit of 65%, and half of our Tyson Foods (NYSE: TSN) calls for a profit of 85%.
Our order to lock in gains on Carnival (NYSE: CCL) didn’t get filled yesterday since the option never traded above our limit price — but that’s perfectly fine. We still have until January 15 before those calls expire, so leave your orders open. That way, we can capture gains from any quick moves in the stock.
That should be it for this week, but as always, I will continue to monitor our positions and alert you of any actions to take.
Until next time, good trading…
Editor, Precision Profits