trip98 said:
I know y'all are traders but long position question for ya
I'm long jnj (insert jokes here) with cost of 109 80
Had it for couple years. Seems like it doesn't want to get past 150-155.
Thinking of putting in sell order for half my shares at $150. Good idea? Bad idea?
My thought process is that's good to capture solid gains on some of it. But with all healthcare stuff particularly their involvement on covid stuff it is worth holding some.
Wait and see and if it drops to 137 or so sell the rest.
The general answer is it depends on what you'd do with the money if you sold it and is this taxable or tax free account. If you don't have another investment lined up, I'd be hesitant to sell it especially if I had to pay cap gains on it. Today is a bit of a lower volume red day, so I'd be less worked about it had it been higher volume. 11/4 - 11/10 had pretty good green volume, the 9ema is crossing back above the 21ema, and the MACD all look like it has good positive momentum.
I was going to suggest looking at selling calls at a 155 or 160 strike, but after looking at how low those premiums are, I'm not sure that helps you much. If you are considering selling now, instead you could look at selling Nov27 calls at $150. You could pocket $1.20-$1.25 per share right now, get the $1 per share dividend and then if it's at or above $150 and executes that gets you close to another 1.5%. In all total that would be a 3% gain just by holding on to it for two and a half weeks. If it doesn't execute then you pocket the premium and dividend and can see if it runs up again. You could also wait for a green day and see if premiums jump a bit or wait longer and when it gets closer to 155 look at selling $155 calls as well.