Trade Alert: We Grabbed a 70% Gain!

This morning, our January 2017 $47.50 call options on Garmin (Nasdaq: GRMN) gapped lower at the open, triggering our stop-loss order to protect a 75% gain.

Since the option opened below our stop price of $4.75, our official exit is $4.60 — which secures us a 70% gain in less than 10 days on the second half of Garmin.

Remember, we locked in a 50% gain on the first half earlier this week. So this nets us a nice 60% overall gain, handing us our ninth winner (including half trades) since we started the beta test.

If your protective stops were not hit, feel free to keep them open and adjust them higher as you track the position. But if you’re not comfortable doing that on your own, go ahead and sell your calls today to lock in your gains. I will no longer be monitoring the position since we’re officially out of it.

With that said, I want to reach out to you on this trade. What gains did you receive, and were you satisfied with the process for this trade?

Please send your thoughts to me at earningsdrift@sovereignsociety.com. I appreciate every piece of feedback I receive in the mailbag. And if you have any questions, I’ll be addressing some emails next week in a mailbag issue.

Portfolio Update

As for the three new trades we made yesterday, I have an update…

You shouldn’t have had a problem getting into two of them — Activision Blizzard (Nasdaq: ATVI) and NetApp (Nasdaq: NTAP) — since both traded under my limit prices. Activision’s official entry price in the portfolio is $1.86, meaning our official limit order to sell half the position for a 50% gain is set at $2.80.

NetApp’s entry price is $1.71, so our official limit order to sell half for a 50% gain is set at $2.55.

Make sure to set yours at whatever nets you a 50% gain based on your own entry price.

Best Buy (NYSE: BBY), on the other hand, only traded below our limit price of $2.60 for about a half hour because the stock steadily rose that day (ranging from $1.75 to $3.70).

Today, the price pulled back some, and a few more orders were filled at our limit. But I’m aware that some people may not have gotten in below our limit price yet — and that’s fine. If your order wasn’t filled, just keep it open through Thanksgiving, and we’ll see if any volatility can get more orders filled. For the purposes of our portfolio, our entry is $2.60, and our limit order to sell half for a 50% gain is $3.90.

In the meantime, I need your feedback on yesterday’s buying process for these three trades. Please let me know how this one went for you by filling out the brief survey below.

Until next time, good trading…

Jeff Opdyke
Editor, Earnings Drift Alert