Sell Entegris Calls for a 6-Day 56% Gain

By Linda McDonough • July 23, 2018

Sell to close the November 16, 2018 call on Entegris with a strike price of $35 at $4.70 or higher for a six-day 56% gain. Symbol (ENTG181116C35)

These calls have risen dramatically in a very short period of time. I am still VERY bullish on the stock and still have it as a holding in the portfolio.

This options trade suggestion is based solely on my more conservative stance of booking a sizeable gain in an option.

Entegris reports earnings this Thursday before the open. I expect bullish earnings but the market is acting particularly ornery of late and I prefer booking the gain in the options, which can be quite volatile.

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JoeJB

07/23/18 ‐ 12:30pm ET July 23, 2018 at 12:30pm ET

Sold @ $4.80 on Fidelity

-CR-

07/23/18 ‐ 1:02pm ET July 23, 2018 at 1:02pm ET

IB @ $4.80

Claude

07/23/18 ‐ 1:06pm ET July 23, 2018 at 1:06pm ET

Sold $4.80 thanks for another awesome trade Linda

Michael E

07/23/18 ‐ 1:39pm ET July 23, 2018 at 1:39pm ET

SELL filled @ $4.79
Fidelity
Thanks Linda!

Carl

07/23/18 ‐ 1:45pm ET July 23, 2018 at 1:45pm ET

SOLD @ 4.70 on TOS Awesome Trade

Thank You Linda

Joseph Lipari

07/23/18 ‐ 2:02pm ET July 23, 2018 at 2:02pm ET

thanks Linda.

Steve S.

07/23/18 ‐ 2:02pm ET July 23, 2018 at 2:02pm ET

$4.70 it is, at Schwab.
Thank you, Linda.

Jeff L.

07/23/18 ‐ 2:27pm ET July 23, 2018 at 2:27pm ET

Sold ENTG 4.70 on TOS thanks again and I’m still holding the stock.

Ted

07/23/18 ‐ 2:49pm ET July 23, 2018 at 2:49pm ET

BTO @ 3
STC @ 4.70
56% gain
Thanks Linda!

Phil L.

07/23/18 ‐ 2:49pm ET July 23, 2018 at 2:49pm ET

Sold at 4.80

Thank you, Linda

MarkS

07/23/18 ‐ 5:13pm ET July 23, 2018 at 5:13pm ET

in at $3/out at $4.70 @ IB, +56%

Paul

07/24/18 ‐ 9:06am ET July 24, 2018 at 9:06am ET

Sold at $4.80. Thank You Linda.

Chris Sieler

07/24/18 ‐ 9:56am ET July 24, 2018 at 9:56am ET

Missed yesterdays alert. Sold today for 5 @ Vanguard withing 20 minutes of open. Thanks Linda!

DR083157

07/24/18 ‐ 10:09am ET July 24, 2018 at 10:09am ET

Thanks Linda this trade worked perfectly.

Sydnee & Howard

07/24/18 ‐ 10:30am ET July 24, 2018 at 10:30am ET

Out at 4.80 Fidelity 7/23.

Daniel Long

07/24/18 ‐ 12:58pm ET July 24, 2018 at 12:58pm ET

ENTG 35C sold for 4.70
–> 55% profit since 7/12/18.
Thanks.
DL

NorMan

07/27/18 ‐ 6:27am ET July 27, 2018 at 6:27am ET

Yesterdays closing price was 3.25. Do we always place limit trades or should I place a market order? Using Interactive Brokers.

NorMan

07/27/18 ‐ 6:32am ET July 27, 2018 at 6:32am ET

Since I am late, I might hold it, though, but this was just meant as a general question. Limit or market order for closing of trades?

DR083157

07/27/18 ‐ 9:54am ET July 27, 2018 at 9:54am ET

Do you think now would be a good time to dip back in to ENTG?

Linda McDonough

07/27/18 ‐ 10:05am ET July 27, 2018 at 10:05am ET

Hello all,

Entegris (NSDQ: ENTG) reported revenue of $383M versus estimates of $380M and $.49 versus a $.46 estimate. The balance sheet and cash flow looked clean and strong. The sell-off in the stock could be related to the company’s comments regarding China. China is a large component of the company’s growth and investors are nervous about the looming trade war.

However, CEO Loy reiterated my bullish take on the stock, which is that demand for its products is not entirely dependent on any one market or on the build-out of new manufacturing capacity. I expect the stock to rebound once the cloud of tech selling dissipates.

As an editor I cannot give trade specific advice. I do expect the stock to rise and while I sold the calls earlier this week, they do not expire until November and I do think the stock will be much higher between now and then.

Best,
Linda

NorMan

07/28/18 ‐ 9:13am ET July 28, 2018 at 9:13am ET

Hello Linda, Next time you issue a alert to close this option or any other option, is it best to place a market order or a limit order? I assume a market order works as good, and it will use the latest price, right?

Howard

07/28/18 ‐ 11:05am ET July 28, 2018 at 11:05am ET

A market order will fill at the next available price, not the last. For example, if you place a sell market order, you get the bid price (assuming there’s enough bid at that price to cover your order – otherwise some will get filled at whatever the next bid price is)…..not the last. Since the bid/ask spreads can be wide, you’ll probably get less than you expected for the order.

NorMan

07/29/18 ‐ 4:12am ET July 29, 2018 at 4:12am ET

ok. So you usually use limit orders to close a trade, then?

Howard

07/29/18 ‐ 6:39am ET July 29, 2018 at 6:39am ET

I *only* use limit orders.

Howard

07/29/18 ‐ 7:28am ET July 29, 2018 at 7:28am ET

If I want to place a sell order that will get filled immediately, I place a limit order at the bid — or if desperate, next lower bid. Unless its got light volume (or you have a large order), it gets filled.

Most brokers will do price improvement, so if you place an order just under bid, you’ll get the bid price for what’s available at that price. and get the remainder filled at the price you placed.

Linda McDonough

07/29/18 ‐ 5:59pm ET July 29, 2018 at 5:59pm ET

NorMan,
The suggested limit prices are not cast in stone because many times the bid/ask that I see is not totally up to date if the options don’t trade a lot. I usually suggest a 5-10% band around those prices. Most of the time subscribers seem to have success getting filled if they place limit orders around those bands.
Market orders leave you with more risk if the stock moves quickly.
I hope this is helpful.
Best,
Linda

Melody Pfingsten

07/30/18 ‐ 12:18pm ET July 30, 2018 at 12:18pm ET

Linda, what about snd, ichr, cc. I am down a lot of money on these stocks that do not seem to rebound. I have not seen ichr in this territory, below 20. SNS is horrible i am down 60% on this stock with a year or more into it. CC is slowly loosing ground.

Linda McDonough

07/31/18 ‐ 9:09am ET July 31, 2018 at 9:09am ET

Melody,
I agree these have been tough stocks to hold. All three have earnings events, which I hope will clarify any negative sentiment on them. On each, I believe there is a significant disconnect between the price of the stock and fundamentals.

1. SND reports on Aug 9. I continue to gather data from oil experts that note a shortage of sand in the fracking fields. I noted in a prior recap that the area SND focuses on has significantly less new capacity than the Permian Basin. Lastly, I would note the huge upward move in HCLP, a competitor working in a different area, when it announced a new leg of distribution. This is exactly what SND is doing.

2. CC reports on Aug. 3. Some of CC’s chemicals are used in auto paint so I believe the sell-off is mostly correlated to the auto tariffs. I am not aware of any regulatory changes that diminish the demand for CC’s products.

3. ICHR reports Aug 7. ICHR is selling off with every stock in the semiconductor group. Investors are panicked that demand for wafer equipment is falling. It has slowed and this is well documented. LRCX attempted to call a turn in demand on its earnings call last week. This helped to lift the stocks a bit. Despite the fact that this stock is incredibly cheap and not entirely dependent on the expansion of wafer equipment, I worry the psychology may remain negative for a while. I am considering a stop loss on this one.

Best,
Linda

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