Trade Alert: Lock in 130% and a New Trade

We’re securing a triple-digit gain today! We also have the new trade I told you about on Monday, but first, let’s lock in our profits…

To do that, we’re going to increase our stop on Activision Blizzard (Nasdaq: ATVI) to secure a 130% gain on the second half of this trade.

As you might recall, we sold the first half for an 89% gain, and we immediately placed a protective stop on the remaining position to secure a 40% gain.

Well, since then, our position has continued to rally, and now our shares are up 165% in just two weeks!

So, let’s capitalize on this quick surge by protecting a 130% gain on the remaining half.

Based on our official entry price, we’ll place this stop at $3.35 in the portfolio.

Please place yours at whatever nets you a 130% gain based on your individual entry price.

Here’s your action to take:

Action to Take
Sell Action to Take
Stock: Activision Blizzard Inc. (ATVI)
Option Type: Call Option
Expiration: Apr-21-2017
Strike Price: $45
Option Symbol: ATVI170421C00045000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $3.35
Trade Deadline: Keep this order open until it is filled or canceled.

Now for our new trade.

Buy Calls in Garmin

Two weeks ago, Garmin (Nasdaq: GRMN) posted earnings that easily surpassed analyst expectations — crushing them by 25%. The stock popped nearly 7% on the news — meeting our parameters for trading.

However, based on our historical data, we knew this wasn’t the ideal time to buy call options. Instead, we knew it was better to wait two weeks because that allows the stock time to calm down from the earnings hype before climbing into a steady uptrend.

So we waited, and we saw that exact thing happen this time.

Since Garmin’s initial pop, the stock has fallen more than 4%, so now is the most opportune time to grab call options. And based on our data, we know we should hold them for about a month and a half.

This same scenario came up 18 times in our research, and in only five of those times was there no opportunity to profit. The other 13 trades were up anywhere from a marginal 1% to more than 20% — showing us a 72% win rate.

Now we can leverage those types of gains with the options we’re buying today.

Not to mention we have a good history with Garmin’s drifts. Last November, we locked in 51.85% on the first half of our Garmin trade and a 70.37% gain on the second — all within just 10 days.

So I’m excited about what our trade today has to offer.

Here’s your action to take:

Action to Take
Buy Action to Take
Stock: Garmin Ltd. (GRMN)
Option Type: Call Option
Expiration: Jul-21-2017
Strike Price: $52.50
Option Symbol: GRMN170721C00052500
Action: Buy to Open
Order Type: Limit Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $2.60
Trade Deadline: If your order is not filled by my next update, I will update you on the trade.
Note: Do not place a market order. Set the limit order at $2.60.
Once this order is filled, place the following order:
Sell Action to Take
Stock: Garmin Ltd. (GRMN)
Option Type: Call Option
Expiration: Jul-21-2017
Strike Price: $52.50
Option Symbol: GRMN170721C00052500
Action: Sell to Close Half
Order Type: Limit Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: Whatever nets you a 50% gain.
Trade Deadline: Keep this order open until it is filled or canceled.
Note: This second order will allow us to collect a 50% gain on half of our position in the event that a quick move happens before I can get a trade alert out to you.

That’s all for this week, but if anything noteworthy happens in the portfolio, we’ll be sure to alert you.

Regards,

Chad Shoop, CMT
Investment Analyst, Earnings Drift Alert