Sell Your Options in Novo Nordisk

With the market rallying sharply yesterday, and our Danish biotech play rallying 1.9%, you enjoyed partial recovery in the value of your $120 June Novo Nordisk call options (NVO110618C00120000).

Because “implied volatility” is such a big component in the value of these options, I am recommending that you sell your options here.

Now, it’s going to be at a loss compared to your buy price way back on Feb. 16. But yesterday’s sharp jump does allow you to salvage some more value before the options expire this Friday, June 17.

Hold on to the stock for now, as NovoNordisk (NVO) has proven to be one of our better defensive plays in the market downturn.
 

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.  

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