Early last month, I started a new strategy in Precision Profits: For every new trade, I added a second action to take — a limit order to close half the position at a 100% return. That way, we could collect a nice triple-digit gain in the event that a quick and unexpected spike happens before I can get an alert to you.
We opened our MarineMax (NYSE: HZO) calls in late October, before we instituted that new strategy, so I’d like to take a moment to recommend that limit order now. Our calls have been steadily edging higher, and I want to make sure we can collect a nice gain in quick fashion if a pop occurs.
The options closed yesterday at $4, putting our position up about 51%.
Action to take: Set a Good ‘Til Canceled limit order to sell to close half the HZO April 2016 $45 call option (HZO160415C00015000) at $5.30.
Until next time, good trading…
Editor, Precision Profits