On October 16, I issued a buy consideration on the CELG January 90 call, and the GILD January 105 call. Both underlying stocks were wildly oversold, finding support after a massive 900-point drop on the Dow.
The next day, I recommended that you consider exiting half of each position, as they put in unexpected moves higher. Today, after what appears to be a near-term over-extension to the upside, I recommend closing the second halves of the CELG and GILD call options. I’ll consider buying them again on the next pullback.
Unfortunately, after such a market routing, losers exist, too.
Lululemon (LULU) and Quiksilver (ZQK) are two of those losers. If you have not done so already, sell to close these two positions.
Always remember not to risk the house on any trade, ever. This market is far too volatile to play games with. Only risk 2% to 5% on any trade.