We’re locking in some exceedingly quick profits.
Last Thursday I sent you a trade alert to double down on our Cabela’s (NYSE:CAB) position by opening a new put option on Cabela’s.
That trade has panned out exactly as I expected.
After Cabela’s shares spiked on the company’s earnings report, the stock has steadily drifted lower, falling more than 5.5%. It is still early in Cabela’s weak seasonal trend, so I don’t want to close the whole position yet and miss out on more potential profits.
Instead, let’s close half of our position, as we routinely do, to lock in gains of more than 130% in just two trading days!
Action to take: Sell to close HALF of the CAB June 2015 $55 put options (CAB150619P00055000) for more than $2.30. At last glance, it was trading at $2.70.
Later this week you will be receiving Chris Orr’s 2015 hurricane forecast, so keep an eye on your inbox.
Until next time, good trading…