Our system just triggered a sell signal in JPMorgan Chase (NYSE: JPM), so let’s close it today.
As you know, we grabbed a quick 50% gain in the first half of this June $110 put option last Thursday.
That was a nice gain to pocket in about one day, and I’m happy to see how many profit-taking orders triggered.
But after the recent market volatility, the position is headed back down. It closed more than 50% below its highest close ($4.30), which was reached last week.
Our stop-loss system indicates it’s now time to preserve our capital here, so let’s close the last half.
To exit this position, use a “sell to close” limit order:
|Sell Action to Take|
|Stock:||JPMorgan Chase (JPM)|
|Option Type:||Put Option|
|Expiration:||June 15, 2018|
|Action:||Sell to Close|
|Order Type:||Limit Order|
|Trade Deadline:||If this order is not filled near the end of the trading day, cancel the limit order and enter a market order, which will fill immediately.|
Selling tip: This option is trading at about $1.65. So you could set a limit order to sell at the current market price. That should reduce your loss, but it may not be executed. Remember to check and edit your order if need be to make sure you exit today.
Since we closed half of this position for a 50% gain, we are getting out near breakeven.
I’m now looking at more profit opportunities to take advantage of the market environment, so stay tuned. I will also have more details on this trade and what’s coming up for us in your portfolio update tomorrow.
If you have any questions or concerns about anything in today’s alert, please send an email to email@example.com.
Michael Carr, CMT
Editor, Precision Profits