Sell Harsco Calls for 3-Day 70% Gain

By Linda McDonough • March 22, 2018

Sell to close the July 20, 2018 call on Harsco (NYSE: HSC) with a strike price of $20 at $3.80 or higher. Symbol (HSC180720C20) for a very quick 73% gain.

If only all trades worked out like Harsco. Although no transcript is available, clearly investors liked what they heard at the company’s presentation yesterday at the Seaport Global Transportation and Industrial conference.

The stock is up 9% since Monday and volume traded in the stock on Tuesday and Wednesday was more than double the 90-day average. This is an indication that investors are accumulating shares based on what they’ve heard at the conference.

Despite the market gapping down, I expect the July 20 calls to trade around the suggested $3.80 exit point. The stock is not tightly correlated to the overall market, which should help.

These calls do not expire until July and I expect the stock to remain strong so if you don’t get filled immediately, I suggest patience and a limit order.

Those following me for a while know that I like to book a double-digit options gain but those that choose to hold on might be well rewarded. If you decide to hold and wait you could think about a stop-loss order, which would lock in a certain level of gains.

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Paul

03/22/18 ‐ 9:41am ET March 22, 2018 at 9:41am ET

Sold at $3.80. Thank you Linda !!!

Ajax

03/22/18 ‐ 9:54am ET March 22, 2018 at 9:54am ET

And as for holders of the stock, continue to hold? Should we open a stop loss for that as well or will you advise of a sell later when you do some ‘pruning’ from the portfolio?

Linda McDonough

03/22/18 ‐ 10:12am ET March 22, 2018 at 10:12am ET

Ajax,
I still like the stock very much and think it will go much higher. The options trades are designed to be short-term trades. I will definitely issue a sell alert when I think it is a good time to exit the stock.
Best,
Linda

Jeffrey Shultz

03/22/18 ‐ 10:00am ET March 22, 2018 at 10:00am ET

Thank you, ma’am! (Again.) 🙂

Michael D

03/22/18 ‐ 10:17am ET March 22, 2018 at 10:17am ET

Thank you!!!!
out at $3.80

David Van De Hey

03/22/18 ‐ 10:51am ET March 22, 2018 at 10:51am ET

I wasn’t careful enough, but due to the CC in the symbol, I sold CC at a loss.

Linda McDonough

03/22/18 ‐ 12:58pm ET March 22, 2018 at 12:58pm ET

David and William,
I apologize for the incorrect stock symbol. Obviously, I strive to always have the correct ones listed. The symbol for the option is always triple-checked. To date, I have not had different option series of the same stock in the portfolio but that might happen in the future, making the options symbol more critical.
Best,
Linda

David Van De Hey

03/22/18 ‐ 1:33pm ET March 22, 2018 at 1:33pm ET

I did get HSC filled at $3.80, so thank you for that. I wondered about the CC but was in such a hurry to place the order that I didn’t take a few seconds to double-check it, which was just dumb. Anyway, I have never figured out how to use a copied-and-pasted options symbol in Fidelity. Does anybody know how to do that?

Abhi A

03/22/18 ‐ 2:05pm ET March 22, 2018 at 2:05pm ET

There is a check box you need to tick (Enter option by symbol). Then you can enter the symbol.

David Van De Hey

03/22/18 ‐ 3:31pm ET March 22, 2018 at 3:31pm ET

Excellent! Thank you.

William Stefanelli

03/22/18 ‐ 12:38pm ET March 22, 2018 at 12:38pm ET

Yeah, you should fix the symbol from CC.

Matt H

03/22/18 ‐ 1:02pm ET March 22, 2018 at 1:02pm ET

Sold Harsco with Fidelity for 3.97

Stanley

03/23/18 ‐ 9:16am ET March 23, 2018 at 9:16am ET

Flying yesterday –
Grabbed $3.60 bought 2.20 good profit

Ray

03/26/18 ‐ 12:45pm ET March 26, 2018 at 12:45pm ET

Linda, HSC was a great trade.
Those calls are approaching your recommended buy price again ($2.40).

Has there been a fundamental change in the market, or do you think a re-entry might have significant upside?

Thank you

Linda McDonough

03/26/18 ‐ 4:00pm ET March 26, 2018 at 4:00pm ET

Ray,
The HSC call trade was timed to coincide with an investor conference. Although the event has passed the idea that the stock will get more exposure and investors will begin to understand its like to the metals markets should drive the stock higher.
I don’t have a specific call recommendation at this point but agree the stock should move higher.
Best,
Linda

Ray

03/26/18 ‐ 6:07pm ET March 26, 2018 at 6:07pm ET

Linda

Thank you for the reply.

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