As I wrote in yesterday’s Alpha Algorithm, I am treating the current market with an abundance of caution. The market is technically overbought and we are entering August, which is traditionally a difficult month for the markets.
I also noted that I am taking all opportunities to close out existing option positions that expire in August.
Yesterday, O’Reilly Automotive (ORLY) jumped 4.02%, and your ORLY Aug. 19 $270.00 calls (ORLY160819C00270000) soared in tandem.
Today, I am recommending that you sell all of these options to lock in a solid 22.92% gain.
I expect to recommend more options in the coming weeks as some of your Alpha Algorithm positions pull back.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
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Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
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: