Action Alert: Lock in Remaining Profits on FDG
Dear Bottarelli Research LEAPS Member,
Over the last week, we’ve seen some weakness creep into the oil, energy, and coal sectors. Near as I can tell, this could be a combination of sector rotation (out of the top performing names and into recovery plays like the financials) combined with near-term profit-taking in advance of the Fed. But whatever the reason, shares of FDG are dropping today, so let’s adhere to our selling model and lock in the remaining profits on our FDG September 90 Calls (FDG IR).
After all, there’s no sense letting our great profits evaporate. As you know, we entered these puts on 6/9/2008 for $5.40 and locked in a 50% return as they traded as high as $8.30. In fact, they moved all the way up to $9.80, which almost put it at the 100% profit mark. But today, the stock is moving lower and these puts are now trading between $6.60 and $7.00. We can always re-enter this position in the future. But for now, let’s lock in the remainder of our profits!
PLAY: Sell the remainder of your FDG September 90 Calls (FDG IR) at market, good for the day.
Sincerely,
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