Trade Alert: Portfolio Update on Columbia

A note from the senior managing editor…

Below, you will find a Sovereign Edge update from Jeff Opdyke, the editor of Precision Profits.


Jocelynn Smith
Sr. Managing Editor, The Sovereign Society

Portfolio Update on Columbia

There’s some good weather news for Columbia Sportswear (Nasdaq: COLM).

Here’s what Chris Orr, our in-house meteorologist, told me:

Snow season is ramping up, and snow is already significantly falling in the Rockies. Colorado was hit with a storm that dropped up to a foot and a half of snow yesterday and today. And another six inches will fall there next Wednesday.

Meanwhile, stormier winter weather — with its rain, wind and snow — will become more active east of the Mississippi River, a weather pattern that will benefit Columbia Sportswear (Nasdaq: COLM) as folks look to stay warm as the weather gets chillier.

As you know from last Friday’s trade alert, Columbia has already had other good news recently. The stock cruised higher last week after the company reported strong earnings, so I recommended closing half of our position for a 100% gain.

Here are the details again: Set a Good ‘Til Canceled limit order to sell to close one half of your position in the COLM January 2016 $55 call option (COLM160115C00055000) at a price of $8.20 — or whatever price gives you 100% based on your original cost.

However, by the time the trade hit your inbox, the price had moved again, and it’s likely that you were unable to get your orders filled. That’s fine — and that’s how rapidly prices can move in the options market. We’re going to keep that order in place as Columbia’s seasonal uptrend continues to play out. I expect shares to climb back up as winter ramps up, allowing us to secure another big winter gain.

Until next time, good trading…

Jeff Opdyke
Editor, Precision Profits