Health check on trades initiated
November 26, 2014 MarcoTrade 5,277
This morning I will quickly review the status of some of the trades initited in the last 30 days.
ALXN covered call (initiated November 12th). The call sold has already lost a third of its value (from $7.60 to roughly $5 as of this morning). The stock has traded down as well from $194.92 to $193.96. So far we are holding just a 1% profit on the trade. Remember however that time is working in our favor as the call option quickly loses value, especially in the last 20 days before expiration. This short trading week will put a dent in the call value if the stock continues to trade sideways. This strategy seems to be working very well so far.
BIDU – Trade initiated on the stock on November 10th for $236.54. The stock is currently trading at $248.40 for a 5% return already. No reason to sell yet. BIDU is close to its 52-week high and there is no reason at this time to believe that it will reverse course.
RJET – Trade initiated on November 21st at $12.40. RJET is now trading at $13.05, moving up very slowly but consistently. I would like to see a little more conviction on high volume. So far the trade is working with a 5% return in only 5 days. This one I am watching closely, ready to sell if the stock starts behaving poorly. Keep in mind however that low oil prices combined with the busy travel season make a compelling argument for RJET to go higher.