Stock talk for the main street investor.

Is Now The Time To Sell?

It’s been an interesting last couple of weeks on the market. Earnings have been great, GDP numbers not so great and unemployment still struggling. I’ve been bullish for a long time and that’s still my long term view as we get past this “breather” in out recovery. But now may be time to take some gains off the table.

The reason I say that is the contrarian way I like to invest. Everything just seems too stable right now for me to be a buyer so I may be a seller. And my favorite thing to sell at times like this are options. You can collect money for the option, if you get called fine, if not you get free cash on a stock you like long term.

Right now I’m looking at selling Las Vegas Sands call options at $28. You get over $2 in premium, meaning if you’re called you sell the stock for over $30. I consider that a good price for that stock.

I would like to do that same thing with Sunpower but the stock is down so far I’m not happy with the price I would get if I sold. So I’ll hold out.

Bottom line is this. If you look at a stock you own and don’t think you would buy it today at the same price, you might want to consider selling.

Disclosure: The Mayor is long LVS and SPWRA.

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