Sell Jazz Calls for a 66% Gain

By Linda McDonough • February 13, 2017

Sell to close the March 24, 2017 call on Jazz Pharmaceuticals (JAZZ) with a strike price of $130.00 at $7.80 or higher. Symbol (JAZZ170324C130) for a gain of 66%.

Jazz has been jumping higher on the backs of a strong pharmaceutical group and progress in its drug trials. I still love the stock but am booking this solid gain.

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02/14/17 ‐ 7:05am ET February 14, 2017 at 7:05am ET

I would have liked to, but was not able to enter at your Suggested price and you said not to chase it. Glad it worked for some folks anyway I have read another train is coming in 15 minutes :^)

Linda McDonough

02/14/17 ‐ 7:49am ET February 14, 2017 at 7:49am ET

Yes, there are always more trains coming down the track! That’s the beauty of the market.
Best,
Linda

Eugene K

02/20/17 ‐ 12:46pm ET February 20, 2017 at 12:46pm ET

Hello Linda,
I’m a new subscriber and new to investing. I purchased Jazz on 2/7 and Chemours on 2/9 as you recommended. But could not sell calls on both on your 2/13 announcement because I couldn’t get the options setup on time with my broker. As of today 2/20, do you still recommend this sell calls? Thank you for your advise!
Eugene

Linda McDonough

02/21/17 ‐ 7:07am ET February 21, 2017 at 7:07am ET

Eugene-
Welcome aboard! Lucky you for waiting- both of these calls are trading for prices higher than when I sold them. The JAZZ calls are now trading about $10.35 and the CC calls about $5.07. I would sell them now and book these nice gains- congrats!
Best,
Linda

Christopher

02/22/17 ‐ 11:34pm ET February 22, 2017 at 11:34pm ET

If you didn’t have the ability to trade options with your broker you probably didn’t buy the options in the first place so you probably bought the stock for Jazz and Chemours. This trade alert was to sell the option on Jazz bought earlier. If you bought the stock instead, I don’t think Linda is advocating selling a covered call on the stock. Just keep the stock until Linda issues an alert to sell it.

Linda McDonough

02/23/17 ‐ 6:16am ET February 23, 2017 at 6:16am ET

Christopher,
Thanks for the clarification- this is not a new trade to sell covered calls but rather a selling of the ones that subscribers may have purchased before. I still have both stocks long in the portfolio.
Best,
Linda

DR083157

02/14/17 ‐ 11:59am ET February 14, 2017 at 11:59am ET

Hope we got some more options trades coming to day so we can invest all the gains, whhhhaaaaahhhhah

Derek: Las Vegas, NV

02/14/17 ‐ 1:01pm ET February 14, 2017 at 1:01pm ET

lol

Michael S.

02/21/17 ‐ 3:48pm ET February 21, 2017 at 3:48pm ET

Hi Linda,
Are we still holding JAZZ long?

Linda McDonough

02/21/17 ‐ 3:57pm ET February 21, 2017 at 3:57pm ET

Hi Michael,
Yes- I sold the calls because they jumped so much so quickly (although in retrospect, we could have made more if I had held them!). However I do expect many catalysts with new drug development coming from JAZZ and expect the stock to go higher. It reports on 02.28. I don’t expect fireworks on the call but am eager to hear how trials are progressing for new uses for its narcolepsy drug.
Best,
Linda

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