Trading Coach Jo – Follow Up on PCLN

Client’s of Trading Coach Jo are happy about the recent gap up due to earnings on Priceline (PCLN)! Both those that bought December calls and those that sold a November Bull Put Credit spread are smilin’.

Before earnings after market on November 8, 2010, stops were tightened up. Going forward, those that bought the Dec calls have a nice profit and need to set a stop to make sure that there are plenty of profits left to put in their pocket. Remember that you do not have a successful trade until the trade is closed!

Those that sold the November Bull Put Credit spread can do nothing, just let their position expire worthless on Nov 19 (maximum profit) and save themselves commission costs. Or they can now close the position for a credit of $.05 or $.10, realize a high profit and use those funds for a new position.

Did you trade PCLN? If so, how did you manage your trade?

Trading Coach Jo

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