Sell Lam Research Calls for 2 Week 43% Gain

By Linda McDonough • January 4, 2018

Sell to close the February 16, 2018 call on Lam Research (NSDQ: LRCX) with a strike price of $200.00 at $7.45 or higher. Symbol (LRCX180216C200)

Sell the Lam Research calls for a swift 43% gain. These calls expire in February, not super soon, but soon enough that I’m booking this quick profit.

The dour mood in tech has changed dramatically to exuberantly bullish in just two weeks time. I still like the group and will likely revisit this name. We still own the Ichor (NSDQ: ICHR) and Applied Materials (NSDQ: AMAT) calls.

Stock Talk

Comments Oldest First

Comments Guidelines

Paul

01/04/18 ‐ 11:17am ET January 4, 2018 at 11:17am ET

Sold LRCX calls at $7.45. Thank You Linda.

Tyler

01/04/18 ‐ 11:35am ET January 4, 2018 at 11:35am ET

Nice trade!

Ajax

01/04/18 ‐ 12:06pm ET January 4, 2018 at 12:06pm ET

Hi Linda,

Two questions: 1) Will the trade execute at a 5 cent increment? Thinkorswim seems to want to use nearest 10 cents in the price. 2) Is there a sense of how long I should wait for this trade to execute? Would any price adjustments be in order or is waiting okay?

Thank you!

Linda McDonough

01/04/18 ‐ 12:24pm ET January 4, 2018 at 12:24pm ET

Ajax,
I don’t know specifically what price increments are accepted at different brokerages but would be surprised if you couldn’t use any decimal.
You can certainly be a bit patient as I don’t expect a big drop in the stock. You could simply put a stop loss price in and wait it out. I usually suggest a band of flexibility (usually $.10-.20) on options prices as the spreads can be wide.
Best,
Linda

MODERATOR: Lisa G

01/04/18 ‐ 2:07pm ET January 4, 2018 at 2:07pm ET

Fidelity is only allowing 10 cent increments on this one.

I did not get a fill anywhere near the price and it is now down to 6.90. But I think I am going to hold onto it into next week.

Derek: Las Vegas, NV

01/04/18 ‐ 6:17pm ET January 4, 2018 at 6:17pm ET

I’m holding into earnings, I think we’ll see a nice jump. Guess we’ll see, but I do understand why Linda wanted to book a quick two week gain.

Derek

MODERATOR: Lisa G

01/07/18 ‐ 5:15pm ET January 7, 2018 at 5:15pm ET

I am too. I fully understand the sell order also, but earnings are looking fabulous.

MODERATOR: Lisa G

01/11/18 ‐ 3:06pm ET January 11, 2018 at 3:06pm ET

We may have wished we had done otherwise! 🙂

Derek: Las Vegas, NV

01/11/18 ‐ 5:26pm ET January 11, 2018 at 5:26pm ET

We’ll find out in a couple weeks… Good luck to us!

Derek

Linda McDonough

01/04/18 ‐ 7:06pm ET January 4, 2018 at 7:06pm ET

Lisa,
I think you’re safe doing that. As I noted, I still like the stock but often will book a gain if we get a big swing in the first few weeks. I’ll have my eye on the stock and will let all subs know if I see anything that changes my bullish view.
Best,
Linda

Victor

01/04/18 ‐ 2:13pm ET January 4, 2018 at 2:13pm ET

closed @ 7.20 at Ally. Thanks Linda

Carlton

01/04/18 ‐ 7:36pm ET January 4, 2018 at 7:36pm ET

I didn’t get filled either.

Linda McDonough

01/05/18 ‐ 9:15am ET January 5, 2018 at 9:15am ET

Carlton,
Please see my reply above.
Best,
Linda

Rick F

01/04/18 ‐ 9:15pm ET January 4, 2018 at 9:15pm ET

Linda,
I didn’t see your notice until after the market closed and the price was $6.20. I’m assuming the drop from $7.45 was due to the decline in the stock price later in the day. Do you recommend waiting for an increase in the price, or lowering our offer?

Linda McDonough

01/05/18 ‐ 9:14am ET January 5, 2018 at 9:14am ET

Rick and Carlton,
I am re-posting my comment in response to a similar question from another sub who did not get filled on the LRCX calls yesterday. The market looks strong again today so I expect you will be able to sell these calls around my suggested price soon.

” As I noted, I still like the stock but often will book a gain if we get a big swing in the first few weeks. I’ll have my eye on the stock and will let all subs know if I see anything that changes my bullish view.”

Best,
Linda

George McMillion

01/05/18 ‐ 8:37am ET January 5, 2018 at 8:37am ET

Closed my first trade with Profit Catalyst, nice profit on LRCX. Thank you Linda and Happy New Year.

Linda McDonough

01/05/18 ‐ 9:08am ET January 5, 2018 at 9:08am ET

Welcome aboard George! I plan on delivering many more. Here’s to a prosperous year!
Best,
Linda

William Stefanelli

01/05/18 ‐ 10:34am ET January 5, 2018 at 10:34am ET

LRCX partially filled so I’m on the plus side for my first PC trade. Nice work Linda, thank you, keep ’em coming.

Chee L.

01/05/18 ‐ 11:20am ET January 5, 2018 at 11:20am ET

Joined last week and closed LRCX calls this morning at $7.40 for an 85% gain! Great trade! Thanks Linda and Happy New Year

Howard

01/05/18 ‐ 12:00pm ET January 5, 2018 at 12:00pm ET

Filled at $7.45 on TDA

John N

01/05/18 ‐ 2:05pm ET January 5, 2018 at 2:05pm ET

I bought LRCX at $4.35 on 12/27.
Sold today for $7.40. 67.5% profit for 9 days. I’d rather book the profit then let it ride further.
Thanks Linda.

John

01/08/18 ‐ 11:14am ET January 8, 2018 at 11:14am ET

Happy New Year Linda

Whats going on with BIVV ? Dropped .50 this morning ?

john

MODERATOR: Lisa G

01/17/18 ‐ 11:07am ET January 17, 2018 at 11:07am ET

I sold half my position for $8.20! Glad I help onto them. Almost 91% gain. Love this company! Thanks Linda!

MODERATOR: Lisa G

01/17/18 ‐ 3:33pm ET January 17, 2018 at 3:33pm ET

And I decided discretion was the better part of valor and sold the remaining half of my position for $11.10 for a fabulous 158% return! Great trade! Thanks Linda!

Add New Comments

You must be logged in to post to Stock Talk