Yes, for the second time in a week we’re coming to you with a special trading alert for one of our option calls. This time, it’s for the Under Armour (UA) calls we issued a buy recommendation on last week. 

If you’re like us here at Tematica then you’ve been enjoying the Olympic coverage and yes, we too don’t understand the green water in the diving well. Better not to ask!

While we’ve enjoyed the games, we’ve also seen a signifiant move in the Under Armour (UA) January 20, 2017 (UA170120C00045000) calls that are on the Tematica Pro Select List. Those same UA calls closed last night at 2.40, 80% higher than our buy-in on August 4th. When we see pronounced moves like that, particularly given that we are entering a slow season for the stock market, we want to be opportunistic.

That means we are selling half the UA call position, but keeping the other half in play to benefit from both the current Back to School spending season as well as the year-end holiday shopping season. Between these two events, Under Armour should be bringing a wide range of products to market, including more footwear and the launch of its sportswear line.

As you trim back your UA call position, be sure to put a protective stop loss in place at $2.00, which is where we will be placing ours on the Tematica Pro Select List. At that level, if the stop is triggered it should lock in roughly a 50% gain on the remaining calls.

Recap of Actions from this special alert:

• Issuing a Sell on half the position on Under Armour (UA) January 20, 2017 (UA170120C00045000) that reached 2.40 yesterday, locking in an 80 percent return.
• We are keeping the other half of the position; however we are boosting our protective stop from 0.80 up to 2.00, thereby locking in a 50% gain on the remaining calls.