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Wyndham Worldwide (NYSE:WYN) has treated us exceptionally well this year, and unlike other stocks, we've traded around a core position, only to see the stock race off without us ... this has been an excellent core holding and trading stock. It moves up, respects moving averages, pulls back every few weeks to allow us to jump back in with a trading stake... and keeps chugging along at a respectable pace. We've made a lot of money on WYN this year, despite being an unheralded name. If only they could all be so well behaved.

I am very torn here, the stock is up almost 6% as I type for reasons I cannot find. I can only assume something along the lines of "less unemployment = more hotel stays". I still find the stock cheap, and I said that $6-7 ago as well. I'm especially torn because technically this is a stock screaming "buy" (not sell) - we have a classic breakout (on increased volume no less), but I want to lock in our gains here and see if we can pull off yet another "trade around a core position" maneuver in the weeks to come. Hence, we are selling half our stake around $20.40 and will place a limit buy order around $19. No one ever went broke taking profits.

Rinse. Wash. Repeat.


Author's Disclosure: Long Wyndham Worldwide in fund; no personal position

Source: Why I'm Selling Half of Wyndham Worldwide