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.
Nicholas A. Vardy