Trade Alert: Lock in a 50% and 75% Gain

Our trades continue to drift in our direction: We’re now up 115% in F5 Networks (Nasdaq: FFIV) and 96% in Garmin (Nasdaq: GRMN).

I like to manage our positions closely to ensure our gains, so today we’re going to move our protective stop-loss orders higher in these positions.

Since our F5 Networks January $130 call options are up 115%, let’s bump up our stop so that we’ll pocket at least a 75% gain on our remaining position. (Remember, we already made 50% on the first half of this trade.)

Keep in mind that the trade directions below are based on our official entry price of $6.83. Be sure to place your stop-loss order at whatever price nets you a 75% gain based on your individual entry price.

Here’s your action to take:

Action to Take
Sell Action to Take
Stock: F5 Networks Inc. (FFIV)
Option Type: Call Option
Expiration: Jan-20-2017
Strike Price: $130
Option Symbol: FFIV170120C00130000
Action: Sell to Close
Order Type: Stop-Loss Order
Duration: GTC (Good ‘Til Canceled)
Limit Price: $12
Trade Deadline: Keep this order open until it is filled or canceled.

Now for our other trade…

Since our Garmin January $47.50 call options are up 96%, we are going to bump up this stop as well — in this case, locking in at least a 50% gain on the second half of this trade. (We made 50% on the first half yesterday.)

Remember, as with the trade before this one, the limit price for your stop-loss order should be based on your individual entry price. In this case, you want to put in a stop-loss order to sell your remaining position for whatever nets you a 50% gain.

Here’s your action to take:

Action to Take
Sell Action to Take
Stock: Garmin Ltd. (GRMN)
Option Type: Call Option
Expiration: Jan-20-2017
Strike Price: $47.50
Option Symbol: GRMN170120C00047500
Action: Stop-Loss Order
Order Type: GTC (Good ‘Til Canceled)
Limit Price: $4.05
Trade Deadline: Keep this order open until it is filled or canceled.

As our calls keep rising, we may adjust these stop-loss orders higher.

That’s all for now, but remember to keep an eye on your inbox. We still have nine companies that are set to report earnings this season — and three are on my radar for next week, so stay tuned.

I’ll also have a mailbag issue for you early next week.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert