Trade Alert: Lock in Gains on Alamo

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We collected another gain today.

On Friday, we placed stop-losses on a few positions. Our stop on Alamo Group (NYSE: ALG) was triggered this morning for our traditional trade.

The traditional March $65 call options traded below my stop order to secure a 10% gain on the second half. We already locked in a 29.41% gain on the first half of this trade, netting us a 19.7% profit in just over two months.

For those whose stops haven’t been hit yet, you can sell your traditional position at the market today since we’ll no longer be following this trade.

Our expanded orders to sell the second half of the Alamo Group March $60 call options for a 10% gain are still standing since the price of the option is above our limit order. But to make sure we’re all on the same page, we are going to go ahead and lock in that larger gain today to close the position.

That will hand us about a 42.55% gain in the second half of expanded. Since we collected 47.87% from the first half, we’ll be walking away with an average gain of about 45.21%.

Here’s your action to take:

Expanded Trade
(In the Money)
Sell Action to Take
Stock: Alamo Group Inc. (ALG)
Option Type: Call Option
Expiration: Mar-17-2017
Strike Price: $60
Option Symbol: ALG170317C00060000
Action: Sell to Close
Order Type: Market Order
Price: Market

I should also note that the first half of our Cedar Fair (NYSE: FUN) expanded orders haven’t been filled. Let’s keep those open to see if they’ll get hit in the next few weeks.

That’s all for today, but keep an eye out this week. I am researching a position at the moment that we might trade.

Until next time, good trading…

Jeff Opdyke
Editor, Precision Profits