Trade Alert: Locking in a 50% and 100% Gain

Our portfolio continues to move today.

I try not to send two dispatches a day, but sometimes this happens when things are moving. And in this case, it means good things for us.

While I sent you an email earlier to limit our losses on Activision Blizzard (Nasdaq: ATVI), we’re now locking in two nice profits — a 50% gain in one position and a 100% gain in another!

So let’s get right into our trades.

To start, our calls in Target Corp. (NYSE: TGT) jumped, triggering our orders to sell half the position for a 50% gain in about a week. As part of our profit-managing strategy, we’re going to place a stop-loss order to secure at least 10% on the second half of the position.

If your orders to sell half your position at a 50% gain haven’t been filled for any reason, go ahead and sell half your position at the market. Then you can manage the remaining half with the 10% stop-loss.

Remember that the trade directions below are based on our official entry price of $1.93. So be sure to place your stop-loss order at whatever price nets you a 10% gain based on your individual entry price. For the portfolio, 10% would be roughly $2.15.

Here’s your action to take:

Action to Take
Sell Action to Take
Stock: Target Corp. (TGT)
Option Type: Call Option
Expiration: Jan-20-2017
Strike Price: $77.50
Option Symbol: TGT170120C00077500
Action: Stop-Loss Order
Order Type: GTC (Good ‘Til Canceled)
Limit Price: $2.15
Trade Deadline: Keep this order open until it is filled or canceled.

Elsewhere in our holdings … F5 Networks (Nasdaq: FFIV) is up nearly 130% for us.

Our current stop-loss order on the last half of this trade protects a 75% gain — so I want us to increase that stop-loss to protect a 100% gain instead. Remember, we closed the first half of this position last month for a 50% gain.

As always, 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 100% 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
Limit Price: $13.65
Trade Deadline: Keep this order open until it is filled or canceled.

That should be it for the week. Again, have a great holiday, and I’ll talk to you next week.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert