This morning the $45 April Call option sold on the open for $1.60. The stock opened at $45.11. We had our gain objective of 5% gain on the stock price and to sell automatically at that point. You can also do a contingency order if you are playing options. Just set your option to sell at market when the stock reaches its 5% goal, and your broker will sell your option.
The goal for the gain on the stock is $2.25 which means our target price is $47.36. At this point the stock has been up to $46.60 or $1.49 per share. Always remember to have a protective stop just beneath the breakout line which is at $44.60 so set your stop loss at $44.55 or something underneath the breakout line. I usually just use a mental stop but you can put a hard stop in with your broker. Things can always go wrong so you will be taken out of the stock or option if the stock hits $44.55 for a small loss. Right now the Call Option is worth $2.30 on the ask and $2.00 on the bid. So the option is up about 40 cents. One contract of Call Options, (100 Shares) is up $40.00. For every $160 investment risked you now are worth about $200. If the stock makes its goal you very possibly will double your money depending on volatility. Now isn't this fun? I think so. Stay tuned for more updates and a new pick once this play is over.
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