Time to lock in profits on Life Lock (LOCK)? Here’s how you do that. (November 15, 2016)
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We are getting all locked up here again with Lifelock ( NYSE:LOCK ). I mentioned last week in the Chart of the Day video about this breakout above 18.00. I am just telling you it is continuing to go. The way you work this is use a trailing stop, don’t just sell. You don’t know how far this can go. There are questions, comments, whatever, about a potential takeout candidate, an acquisition candidate. Maybe the company is going to take itself private, I have heard that as well. But here is the deal, and any of those things, if they happen, it is not going to be a lower price than this. You are not going to get some company that makes an offer to Lifelock ( NYSE:LOCK ) for $19.00 a share. It is not going to happen.
So what I would suggest doing is just staying long for now. Use today’s intraday low, 19.75 (which was the year that I was a sophomore in high school, very nice year, good year, actually a junior in high school), but use that as your reference point for a stop. Keep your stop just a little bit below that. The way this thing is trading it can move up for a while more. So you just stick with it. Don’t try to call the top. If you do that successfully, you weren’t successful you were just lucky, so just stay long the stock and watch the volume. The fact that yesterday volume was basically back to normal you might think, “Well that is the end of that. I get to sell this stock.” Boom! Today double the volume, double your fun, with another 4 percent gain. So you use your trailing stops and that is going to make you money on this stock.
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