SNE Current Price: $53.20
At the end of April, I wrote about a call option trade on this stock, buying the July Week 3 $50 call at $3.10 per share. The stock has rallied nicely, and isn’t quite to my original target at $53.72. I like to think of target prices in a similar way to what I do with support and resistance levels; they are reference points rather than hard-and-fast rules. The stock isn’t far off that target price, and the option is up nicely from my original purchase price, so I think this is a great time to lock in that gain.
- July Week 3 $50 Call current Bid: $4.60. Original purchase price: $3.10
- Order type: Market sell to close.
- Net gain: $1.50 per share.
- Net return: 48.3%