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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Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: