Recap on 20 Sep Bull Alert
From 20 September where I said XLI, X, CTL, AA, MU, SQ were a buy, here's how I did:
The US Steel (X) had a gain on 04 OCT where one could have taken profits in an options trade. Emerald Chase is still in the trade as such; we bought a single call.
These small moves in the underlying is all you need for awesome returns trading options. For instance, we bought calls options when CTL was $18.93 on 25 Sep and as she moved to $20.18 over seven trading days, that $1.95 uptick was enough for substantial returns. Check it out:
CTL- We took profits on this name making +32% (risked $300 made $96) returns in one account and +51% (risked $200 made $102) in another. We bought these vertical call spreads on 25 Sep and sold them across both accounts on 03 Oct. The difference in returns aforementioned is due to the different times we executed our sell orders; the 32% gain was early in the trading day while the 51% was later.
For my investors out there Century Link (CTL) is a buy. She is coming off a seven year low of $18.17 and paying a dividend of $0.54 for the last five years. With the current stock price $20.10 that's a dividend yield of 10.74% at the time of writing this post. CTL is gearing up for something big regarding its $25 billion takeover of Level3. I don't like putting on a stop loss but if I did here it would be at $18.16.
If you're not already in these names then I would advise not to jump in as all of them are overbought, with the exception of CTL.
MU- man we sold too early! But you can't cry over money not made if you still made some!
Positions: S, NKE, TGTX, AMX, VALE, GDX,
