Two weeks ago, I recommended the purchase of Clean Energy (symbol CLNE) to profit from the drop in natural gas prices. Clean Energy builds and operates natural gas filling stations. At the time the stock price was 13.35. This morning, the price just broke through $15.00 and it seems to be going higher. Most likely, this spurt is due to the expectation that president Obama will speak favorably about the use of natural gas in tonight's state of the union speech. So the stock is up about 12% in two weeks and there is a big event coming which ought to promote the use of natural gas futher. In short, it is a good time to take some of the profits from this stock.
I am not recommending that you sell out entirely. I do suggest, however, either that you sell a half of you position or that you write covered calls on half. For example, the March 15 calls are now priced at about 95 cents. Selling those calls on half of your position will cap your sale on those shares at $15.95, but it will also give you a nice chunk of change. Taking some profits on the way up is normally a wise thing to do.
Disclosure: I remain long CLNE. I did close a portion of my position to take profits earlier today.
No comments:
Post a Comment