by Don Fanstone, Kitchener/Waterloo User Group Member
January 14, 2014
Editor’s Note: In the spirit of sharing investment ideas for the benefit of our VectorVest community, Don Fanstone has agreed to provide a regular article for our Blog in the Options Category. Don is an experienced investor and successful options trader. He makes regular presentations to the Kitchener/Waterloo User Group. Don will provide weekly or bi-weekly updates on past trades and new trades. Frequency will depend on market conditions so be sure to check the Blog regularly. Trades will be on Canadian stocks unless otherwise noted.
On Jan. 8th, Bought May 38 Call Options on CGI Group, (GIB.A) selling at $7.45.Each Call Option purchased represents a cost of $745.00 as this controls 100 shares of stock.
This was purchased due to the positive technicals as well as VV showing a new DEW signal on Jan. 8th. GIB.A Price above 30 DMA, DPO, ADX, STO all Positive. MACD slightly Negative, a slow indicator.
The research used for fundamentals has a price target of $53.00 while VV has a value of $59.00. Stock selling at $44.87. CGI has signed several new customers of late, this can be seen under the VV News.
Sell signals employed are the Price falling below the 30 DMA and/or the DPO turning negative.
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.