August 2, 2018 - MDT Alert (FEYE)

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FEYE reported and gapped down off their earnings. This is one of the reasons I suggested selling the front week inflated call options.

You just never know what a stock will do going into earnings.

Based on the gap, FEYE is now oversold and I see no reason not to buy back the calls.

My suggestion is to Buy to Close the August 3rd-$16 calls for 2 cents. You may have to move the price up a little, but I?would rather cover this position because it frees us up to sell more calls if FEYE has a decent bounce.

If you close the calls for 2 cents, your profit will be $.68 per option.

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