Sell Alert: STMicroelectronics (STM)

TRADE INSTRUCTIONS
Date: June 8, 2017
Name: STMicroelectronics N.V.
Symbol: STM
Type: Close
Limit: Sell at market 

TRADE RATIONALE
STM has traded within two cents of our price target of $17.25 this afternoon, so I am closing this position out a week before our holding period is due to expire. There may be a little bit more upside left in this name, but I am going to take the money and run rather than risk giving back any of our gain. We made a little better than 10% in just under three months, and I’m sure many of our options traders did a lot better than that!   

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Stock Talk

WillW

WillW

STM position closed at $17.25 earlier today. Looks like it finished the day above that. Thank you, Jim!

Jim Pearce

Jim Pearce

I thought that it might but wanted to get the sell alert out in time for people to act on it before the market closed. All’s well that ends well!

Janis Bell

Janis Bell

Hi Jim, I was too exhausted last night to open my email, but put in a sell limit order very early this morning for yesterday’s market close price. Well I guess it must have opened below that and headed straight down all day because my order wasn’t filled. So now what do I do? Sell at market price Monday or hold out for a few days for an upswing?

Jim Pearce

Jim Pearce

From a technical perspective, STM has support around $14.60 so it could still drop a bit further before leveling off. There was no official news on Friday to explain the share price drop, but presumably it is the result of speculation over which suppliers will be used by Apple for its new iPhone being released later this year. My guess is one of STM’s large institutional shareholders has decided to trim back its position in STM, in which case it should bounce back once that block of stock has cleared the market. But that may take a few days since they don’t dump it all at one time.

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