Happy New Year…
Here’s to a happy, healthy and profitable year.
When we last spoke, I recommended a buy on DIA March 2015 176 put, arguing the Dow was likely to fail at a double top and move lower.
That’s exactly what happened.
On failure, the Dow is down 236 points on the day, sending our put as high as $5.64.
If you’re happy with the gain, I’m recommending that you sell to close half to secure gains here.
While I believe the Dow could easily plummet to 17,200, challenging prior support, it’s still best to protect gains in this market.
Congratulations on the gain.
Aside from that trade – and the winners we closed in 2014 – I do have some losers to close out, including Enerplus (ERF) and Celgene (CELG).
When we first bought the ERF January 22 call, it was up as much as 22% in the first few days. But when oil flopped, so did ERF.
If you still hold this trade, sell to close, or allow it to expire.
As for CELG, despite overbought conditions, the underlying stock continued to push higher.
If you still hold the trade, consider selling to close, or allow it to expire this month.
Hold all other trades.
We’re looking for new opportunities as we speak. Stay tuned for that.
Ian L. Cooper
Forgotten Profits