Just days after recommending a buy on the KNDI September 19 put, the underlying KNDI stock fell well under $17. It was enough to send our put to $4 where it stands today. Only if you’re happy with the current gain on this trade, consider exiting just half of it today for gains. If you choose not to, that’s okay, too. We plan to hold the remaining half, believing KNDI could fall to $15 on a gap fill.
We feel it’s best to secure at least something because the stock is attempting to form a new base just under $17. We’re not interested in losing money even if the upswing is short-lived.
Again – if you’re interested – sell to close half of the KNDI September 19 put for gains. Hold the second half.
As for our positions in GoPro (GPRO), the underlying stock did exactly what we thought it would. Right after recommendation, the underlying stock plunged under $38 giving us a gain. We decided to hold, and are continuing to hold.
We also knew that at some point, the foolish herd would attempt to chase the stock higher. That has now happened too, forcing our October 43 calls to $6.20 – a 42% gain. If you’re interested, sell to close half of the call side of the hedge to secure gains on that side. Hold the second half, as well as the put.
Here’s the problem with GPRO.
It’s massively over-extended again. At some point, it will swan dive and die off fast on the realization that this company is overvalued with revenue stream issues. It’ll be very interesting to see what they produce with earnings out Thursday.
For the time being, if you’re interested, sell to close just half of the GPRO October 43 calls to secure what’s there.
Hold all other positions, including the PetSmart (PETM) October 70 put. PETM is extremely overbought, too. Stay tuned for more updates and recommendations.