Take Profits On Morgan Stanley, Capital One Options

This morning, we suggested that readers of the Navivest Stocks and Options blog buy the Capital One Financial (COF) September 50 puts and the Morgan Stanley (MS) October 42. We did not believe in the Fannie (FNM) and Freddie (FRE) induced rally.

The COF puts now have a bid price of $4.30, They opened at $3.10 this morning, that is a gain of 38% in a day, and the Morgan Stanley (MS) October 42 puts are now bidding at $3.8. The opening price was $3.10 on those as well. That is a gain of 22%.

Our rational for both trading ideas was the fact that we have economic news being released later on this week, that will probably drag the markets down. However, we have enough one day gains in the shares so we are suggesting that those who entered the trades exit today.

Navivest has a subscription based service, The Options Capitalist. Twice a week, we send out winning trading ideas such as these, with a target profit of 15-20% on each trade.

Yesterday, as stocks were rallying, we emailed our subscribers and told them to buy Goldman Sachs (GS) September 165 puts. We closed them out yesterday for a 36% gain. We also bought puts on Morgan Stanley (MS), Zions Bancorp (ZION) and Morgan Stanley (MS) and entered in the GS Sep 165 puts again and with the exception of the GS Sep 165 puts which we closed out for a gain of 22%, those trades are all up over 30% today.

If you’d like a free two week trial subscription to The Options Capitalist so you can get winning trades such as these, click here.

Tags: Options  Goldman Sachs  Zions Bancorp  Morgan Stanley