The CME Trade Updated

The CME is doing what I anticipated a couple of days ago when I bought the stock at $267.37 a share. It is trading at $280.27, for a profit of $12.90 a share.

The call that we are paper trading is now at $25.35 (after being "purchased" at $16.40) for a profit of $8.95 a contract.

If you had purchased the call, you would now be $20 in the money which means the delta should now be approaching 1. In other words, the option should start moving point for point with the stock if the stock rises a bit further.

It is now time to look for the exit on these trades. I believe the stock can rise to close to $300 s share. I base this on a look at the chart, where resistence exists at about that level. If you had bought the option, you would be looking to take your profit before that point, as the call only has 22 days left until expiration. If you had bought the September call, rather than the August call, you would have enough time to wait for the move to $300 in the underlying.

If you own the stock, you might want to move your stop up to a point just above the entry point of the stock trade. If the stock goes up a bit further, you would move your stop up further, but to what point is not yet clear.

If you have the call option remember, this option has Theta (time decay) working against it. You have a nice profit on the option (54.5%); do not let the profit slip away!