Close Existing Position: STMicroelectronics (STM)
Monday’s overnight market decline of 7% caused several stocks in the Profit Booster portfolio to blow through their stops before we could act. And while the market bounced back yesterday (gain of 4%) the sellers are back in force today driving the market right back down 4%.
While I am not ready to panic and blow out all of our positions, I do have to take my cues from the market, and reduce our exposure by closing one position today.
To execute this trade, you need to:
Sell your STMicroelectronics Stock, and
Buy to Close your March 30 Call
For example, you could sell STM stock at 23.2 and Buy to Close the March 30 Call for $0.05.
Once you have executed the stock sale order and closed the option you will no longer own a position in STM.