The LEAPS Trader
105 W. Monument Street
Baltimore, MD 21201
Monday, July 16, 2007
Email – #384
** Take profits on Teva!
Our Teva Pharmaceuticals (Nasdaq: TEVA) Bull Spread is up around 50% right now. However, time is beginning to run out on our 2008 options and the market is in uncharted territory.
Close out your Teva spread by selling your Teva January 2008 $40 call option (WTX AH) and buying back your Teva January 2008 $45 call option (WTX AI).
We’ve had a wild ride with Teva. It took us from a position that was down 70% at one point to a massive profit today. But that’s the beauty of LEAPS options – they allow us to withstand a lot of ups and downs in a stock because of our low entry price and time. If we had bought TEVA as a straight stock play, we would have been stopped out at a bigger dollar loss a long time ago.
Karim
