By Don Fanstone, Kitchener/Waterloo User Group Member
CGI Group (GIB.A) is showing a 24% profit as of the close today, Monday January 19th. $9.25 is the current Bid price, and the original purchase at the offer price was $7.45.
VectorVest suggests we consider taking Options profits around 25% or greater. Holding for more gains is a personal choice.
For the “Record”, I will show this trade as closed today.
I suggest that those who may want to sell at this time, take the BID price and close out the trade. Personally, I will hold this trade for further gains, looking to exit the trade on a red candle, a market downturn, or a need to sleep.
A good consideration would be to sell one-half of the holding now.
CGI Group is still in a steady move upward with a strong green candle today.
One minor concern is that the stock price is almost 17% above the 200 DMA. Stocks that get too far ahead of the 200 DMA tend to revert back to this average.
All in all, 24% is, a fair gain for a trade of 11 days,
Other Trades I am Holding. CNR June 66’s. CNR reports earnings Jan. 27. IPL July 27’s Inter Pipeline is one of the major pipelines running inter-provincially. All of the pipelines have suffered in the market downturn. Last Saturday’s Globe and mail carried an article by Ted Dixon, noting that Insiders are buying this stock.
DISCLAIMER: Options trading involves risk and is not suitable for everyone. The information contained in this Blog is for education and information purposes only. Example trades should not be considered as recommendations. Options training is strongly recommended before placing any trades. VectorVest offers a basic options course online and occasional intermediate options workshops in Canada each year.
