Categories: Bull Market Alert HotlinesStock Market News

Booking 71.43% Option Gains on the Japanese Rally

The Bank of Japan’s quantitative easing has put a fire under Asia’s biggest stock market, as Japan’s Nikkei continues to soar.

Your position in the ProShares Ultra MSCI Japan (EZJ) is now up 13.77% during the past month.

Your option play on the Japanese market — the August 2013 $45 call options in WisdomTree Japan Hedged Equity (DXJ) — is now up 71.43%.

With the market rising so sharply, these options have become overvalued for the short term. So I am recommending that you sell half of your call options here to lock in your big gains.

Hold on to the rest of your DXJ options for potential triple-digit percentage gains in the days and weeks ahead.

Also, I am recommending that you sell half of your position in ProShares Ultra MSCI Japan (EZJ) to lock in a 13.77% gain on that portion of your position. Raise your stop to $76.80. That will lock in double-digit percentage gains in case of a pull back.

Note that since Japan’s Nikkei is up another 1.96% overnight, you may exit these positions at an even better price than indicated above.

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Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.