That correction may have started with the overnight sell-off in Asia.
So I want to recommend that you do some “house cleaning” on some of your expiring options positions.
1. Sell your remaining March $23 call options in Ivanhoe Mines (IVN) for a small loss of 3.13%. You shouldn’t have many options left, and your overall position should be profitable, as you’ve already sold half of your options on Nov. 8 for a 53.13% gain, and another quarter on Dec. 8 for a 103.13% gain.
2. Sell your April $7.00 call options in Melco Crown Entertainment (MPEL) for a modest 15.79% gain. I expect to recommend more options on this one at a later date, after the stock pulls back.
You also have March options in China MediaExpress Holdings (CCME) and Silvercorp Metals (SVM). Both of these are powerful stories as stock investments and you should feel comfortable holding them. But I am keeping a close eye on the options for an opportune time to exit. Keep an eye out for a Special Alert on these in the coming weeks.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager. As well as a book author and regular contributor to numerous investment websites, Jim is the editor of:
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Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: