Today, I have a quick update for you on our Briggs and Stratton (NYSE: BGG) puts.
In last week’s alert, I recommended that we sell half of our position because Briggs’ stock was slipping and our puts were up 92% in just over a month. To capture a 100% gain, I gave this action to take: “Set a Good ‘Til Canceled limit order to sell to close half the BGG October $20 put option (BGG151016P00020000) at $2.60 (or the price that nets you a 100% gain).”
However, our order never got filled. The option hung around $2.50 for a while, and now it sits at $2.
We originally bought puts on the small-engine manufacturer to benefit from its spring and summer downtrend, and our thesis has been playing out. The company’s seasonally weak trend — which spans April to August — emerged earlier this year, just as it’s done every year since 2010. In fact, since April the stock has fallen 8.9%. And I don’t expect that trajectory to turn around.
So let’s keep our limit order open for now. I’ll keep watching it, and I’ll alert you if we need to take any more actions.
On a separate note, Chris Orr told me he’s putting the finishing touches on his special summer outlook report, which should be ready for you tomorrow. In it, he explains his forecast for the upcoming months — and the trends that seasonal traders like us should be watching. So keep an eye on your inbox!
In the meantime, you can see how the rest of our holdings are doing by clicking here.
Until next time, good trading…
Editor, Precision Profits