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Today, we are going to increase our protective stop on Juniper Networks (NYSE: JNPR).
Last Monday, we exited the first half of our Juniper April 2017 $27 call options for a 59% gain. We followed that up by placing a stop to protect a 10% gain on our remaining position.
Well, that option has continued to rally — and today we’re up more than 100%!
So let’s increase our stop to preserve a 75% gain, a much better return than the 10% we were originally looking to capture.
If you have that standing 10% protective stop, you can simply edit it to preserve a 75% gain instead. Be sure to also set your stop at whatever nets you a 75% gain based on your individual entry price. Our official entry is $1, so our stop to protect a 75% gain will be set at $1.75.
Here’s your action to take.
| Action to Take | |
| Sell Action to Take | |
| Stock: | Juniper Networks Inc. (JNPR) |
| Option Type: | Call Option |
| Expiration: | Apr-21-2017 |
| Strike Price: | $27 |
| Option Symbol: | JNPR170421C00027000 |
| Action: | Sell to Close |
| Order Type: | Stop-Loss Order |
| Duration: | GTC (Good ‘Til Canceled) |
| Limit Price: | $1.75 |
| Trade Deadline: | Keep this order open until it is filled or canceled. |
Portfolio Update
Last week, we set a 75% stop-loss order on our Western Digital Corporation call options to preserve our capital.
Those calls failed to turn higher, so our stop was triggered, closing our position for a 75% loss. If your stop didn’t trigger for any reason, go ahead and exit this position at the market.
A losing trade is never fun — but we’ll look to make up for this rare loss in our upcoming trades.
In fact, we’re set to enter another call option soon based on an earnings announcement from a couple weeks ago. And there are a total of 11 more possible trades this earnings season, so our trades could rev up as we enter these last weeks of the season.
You will want to pay close attention to your inbox.
Until next time, good trading…
Jeff Opdyke
Editor, Earnings Drift Alert