Categories: Bull Market Alert HotlinesStock Market News

Booking a 229.90% Gain in Sony Options

Yesterday morning, I sent you a Special Alert recommending that you sell half of your Sony (SNE) July $18 call options (SNE130720C00018000) to lock in 75%+ gains.

Well, it turns out that I was overly pessimistic. The options actually opened much higher, allowing you to book 312% gains — assuming you sold the options at the open.

Sony stock ended the day a whopping 9.90% higher, and your remaining July $18 call options are up 229.90%.

After such a huge jump, options always become overvalued because of the impact of “implied volatility” in option pricing models.

So, I am recommending that you sell all of your remaining July $18 call options to lock in your 229.90% option gains.

I am also recommending that you sell one-half of your Sony shares to book a solid 22.41% gain.

Finally, raise your stop to $20.40 to ensure at least a 20% gain in the remaining half of your Sony stock.

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.