Long DOLE – Short covering rally

Long DOLE – Short covering rally


This Trade Was Closed March 20, 2012

Closed this trade for a profit yesterday at $1.15

Original Trade Post:

Dole breaking out of a double bottom after reporting narrower 4Q loss of (.02) vs (.12). B/o above the 10.20 level, and a short squeeze is underway. DOLE has a short ratio of 30 – which means 30 days to cover the short interest currently on the stock. Upside Price Target on the shares is $11.61, which should value the option at $1.60 per contract. I purchased my shares @ .85. Currently the bid/ask is .90 – 1.15, and I think it is still actionable if you can get in at $1.10 per contract. Make sure to manage your max risk on this trade, expect to lose all that you put into it. So only purchase up to the max risk of your portfolio.

Trade Details

  • The Ticker: DOLE
  • Target Price: 1.60 per share
  • The Trade
  • Buy to Open Apr 2012 10 Calls at .85 or better
  • Trade Opened: Mar 16, 2012
  • Trade Closed: Mar 20, 2012

Chart courtesy Finviz. Click to open larger.

Additional Image Provided by eatlovetrade:

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