Take GG Profits
Lock in Modest Gainer
PLAY: Sell your GG April 39 Puts (O:GG 10P39.00) at market, good for the day.
Dear Bottarelli Research Member,
Back on March 11th, we played earnings on Goldcorp (GG – NYSE) using a combination of GG April 40 Calls (O:GG 10D40.00) and GG April 39 Puts (O:GG 10P39.00). In total, we paid $3.30 for both positions. Then, in response to GG’s earnings, we sold the GG calls for $1.42, leaving us long the puts for a break-even price of $1.88.
As you can see above, shares of GG are breaking below two critical levels of support, which has pushed our GG April 39 Puts (O:GG 10P39.00) up to a high of $2.15. This gives us a modest gain on our entire basket. So at this point, the question is whether to maximize our returns and continue holding our puts, or close the position now? Considering how long we’ve held these puts, I say we sell them. After all, as I mentioned earlier, we can always jump back into a new put play if the GG chart (or the markets) indicate more weakness ahead. But for now, let’s take the money and officially close off this earnings play.
PLAY: Sell your GG April 39 Puts (O:GG 10P39.00) at market, good for the day.
And as always…
Lock and load!
Sincerely,
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