Trade Alert: Lam Research Is Up 190%

Yesterday, we bumped up our protective stop on Lam Research (Nasdaq: LRCX) to secure a 115% gain on the second half of our position.

Well, our June 16, 2017 $135 call option has continued to soar — and we are now up more than 190% in less than two weeks!

It’s always exciting when these drifts fall right in line with our expectations, so I hope you’re having fun with this one.

For those who’ve been following our stop-loss recommendations for locking in greater profits, well done.

Today, we’re going to bump the stop up once again.

Since the spread isn’t as wide as it was yesterday, we can increase the stop to protect a gain of 175% on the remaining half of our position.

Based on our official entry price of $5.25, I’ll be placing the stop at $14.45 — but be sure to place it at whatever nets you a 175% gain based on your own entry price.

Here’s your action to take:

Action to Take
Sell Action to Take
Stock: Lam Research Corporation (LRCX)
Option Type: Call Option
Expiration: Jun-16-2017
Strike Price: $135
Option Symbol: LRCX170616C00135000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $14.45
Trade Deadline: Keep this order open until it is filled or canceled.

I also have a quick note on our latest trade, Western Digital (Nasdaq: WDC).

As I noted yesterday, we are officially in this position, but our entry price is different than what I listed. I mistakenly used the closing price as the entry price.

As you know, our official way to calculate the entry price is based on an average of the price right after the alert goes out and one hour later. That gives us our actual official entry price of $3.07. Sorry for any confusion this may have caused.

That’s all for today.

But there are still plenty of possible trades this week, so keep paying attention to your inbox for our next trade alert.


Chad Shoop, CMT
Editor, Earnings Drift Alert