Increasing Limit on Granite Calls but Eagle and Vulcan Rose Too Fast

By Linda McDonough • August 30, 2017

The call trades from yesterday rose much faster than I expected.

I am withdrawing the trades on the Eagle and Vulcan calls as both are up more than 50% overnight. If you were able to buy these calls, please let me know and I will keep an eye on them for a good exit point despite them not formally being in the portfolio.

Hopefully, these stocks give up some ground so that I can suggest these calls at a better price.

It is very difficult to choose the best limit price for less liquid options. I recommend subscribers give $.05-$.10 leeway for the limit prices suggested but even that latitude would not have worked for these two sets of options.

Although the Granite calls traded at my limit they are only up marginally so subscribers who missed that trade might raise the limit from $2.50 to $2.78.

Buy to open the December 15, 2017, call on Granite Construction (GVA) with a strike price of $55 at $2.80 or lower. Symbol (GVA171215C55)

Happily the Summit (NYSE: SUM) November 30 calls traded at my limit price. They doubled overnight so I recommend subscribers who executed this trade to sit tight.

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Karl

08/30/17 ‐ 11:54am ET August 30, 2017 at 11:54am ET

Hi Linda,
yesterday i bought EXP for $4.65 and VMC for $2.70. Today i have already a profit of 90% in EXP and 73% in VMC. SUM i didn’t get for $0.76.
Will it become better or shall i take the profit, perhaps sell with a limit of 100% profit?
Best,
Karl

Linda McDonough

08/30/17 ‐ 12:03pm ET August 30, 2017 at 12:03pm ET

Hi Karl,
It’s hard to argue with an almost triple digit overnight profit. I would maybe place a stop loss on those positions at current levels to protect your gain but allow you to enjoy more upside. Congrats on the nice trade!
Best,
Linda

Karl

08/30/17 ‐ 11:57am ET August 30, 2017 at 11:57am ET

Also i baought today GVA for an average price of $2.84.

Bruce Demko

08/30/17 ‐ 12:02pm ET August 30, 2017 at 12:02pm ET

Linda
I really liked your thinking on these trades and was somewhat eager to get in so I raised the prices a little on a couple of them. I’m glad I did though looking at today’s valuation. If you could follow and provide advice I would appreciate, I will watch what you do on Sum.

Filled:
EXP 11/17/2017 92.5 call for $4.80
VMC 11/17/2017 125 call for $3.00

but I missed SUM my order at $0.70 never filled and I didn’t go back and raise it because it was close. Any thoughts on increasing limit?

Thanks for the great ideas.

Linda McDonough

08/30/17 ‐ 12:06pm ET August 30, 2017 at 12:06pm ET

Bruce,
I am happy you were aggressive with those buys. In retrospect, I wish I had done the same.
I don’t want to chase the SUM calls with them up so much. I am watching closely for a better entry point.
Best,
Linda

JoeJB

08/30/17 ‐ 12:25pm ET August 30, 2017 at 12:25pm ET

Linda
Did some reaching yesterday because the trades looked good and the idea right on. Purchased all the suggestions:
SUM at $0.75
EXP at $4.92
GVA at $2.55
VMC at $2.76
So far turned out great. The question now is exit strategy and when.

Daniel Lipman

08/30/17 ‐ 3:26pm ET August 30, 2017 at 3:26pm ET

I’m in Eagle. Appreciate your sell advice
Thx

Darryle

08/30/17 ‐ 5:48pm ET August 30, 2017 at 5:48pm ET

Linda

How about a call on Fluor- FLR?—Quite large in the gulf coast.

Linda McDonough

08/31/17 ‐ 9:45am ET August 31, 2017 at 9:45am ET

Hello all,
Congrats to all of you who bought the EXP and VMC calls. I missed putting them officially in the portfolio because I set my limit price too low. Most of you should have a gain of roughly 80% in the EXP calls and 75% in the VMC calls.

I recommend SELL the EXP Nov 92.5 CALLS and the VMC Nov 125 CALLS at current levels to book those gains. If you would rather ride out any upside, I would put a stop loss on positions at current levels.

Best,
Linda

Allen Suss

08/31/17 ‐ 7:48pm ET August 31, 2017 at 7:48pm ET

Missed GVA entirely, and notice DEC $55 Calls at about $3.90.
Should I let this trade go, or is there much more to run?
Anyhow a great call.

Allen Suss

08/31/17 ‐ 7:52pm ET August 31, 2017 at 7:52pm ET

Hi Linda,
Just a suggestion for those options GVA and SUM, rather than selling outright, the options can be rolled down to a higher strike price, and take the outstanding cash.
This takes out some of the profit, in cash, and still allows one to be in the trade.
What do you think?

Linda McDonough

09/01/17 ‐ 9:48am ET September 1, 2017 at 9:48am ET

Hi Allen,
As a publisher, we are prohibited from giving personalized advice so I can only reply with a general comment.
I haven’t recommended that trade but am certainly looking for attractive entry points on all of these names as I think they will move higher.
Best,
Linda

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