Sell Signals
01/07/2015
Taking Profits on Two Options -- Selling for Gains of 388% and 112%
Today's sell signals are for
our Option
Portfolio. We are fond of buying call options of the
stocks in our Primary
Stock Portfolio. Of course, buying call options ratchets
up the risk level. It is not uncommon for call options to
expire worthless. But they also have higher upside potential
than simply owning the underlying stock. An example of this
was when we recommended buying call options on Zimmer Holdings.
A $660 investment in Zimmer Holding call options was sold
for $5,260 seven months later, resulting
in a gain of 697%.
Today we took profits on the two positions listed in the table below. Because we already personally have positions in ABBV and KRFT, we sold the options for cash instead of using the options to purchase the stocks. If we had not already owned shares of ABBV and KRFT, we would have used the options to purchase the stock.
Selling the ABBV option resulted in a gain of 388.3% while selling the KRFT option resulted in a gain of 112.2%. The options were recommended on June 8, 2013. Selling these options means our option portfolio currently has no recommendations, but we soon will be adding options.
The average result of the options we have recommended in our Option
Portfolio has been a 110.9% profit in 257 days.
Recommended
Options Being Sold |
| Underlying
Stock |
Option
Type |
Exercise
Price |
Expiration
Date |
ABBV |
Call |
$50.00 |
01/17/2015 |
KRFT |
Call |
$57.50 |
01/17/2015 |
***
