When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Tech Trade Alert - Veeva Systems Inc. (VEEV) – SELL – TAKE PROFITS
SELL the Veeva Systems Inc. (VEEV) September 2019 $135-$140 in-the-money vertical BULL CALL spread at $4.95 or best
Closing Trade
9-6-2019
expiration date: September 20, 2019
Portfolio weighting: 10%
Number of Contracts = 23 contracts
I will keep coming back to this one from the long side, especially if I can roll down my strikes, but now is time to take profits on our call spread.
Veeva has been resilient as steel.
Veeva Systems has exhibited strong support around the $155 to $160 levels throughout these volatile sessions.
Why do we look at Veeva Systems?
If you thought there was no cloud stock for healthcare, then you thought wrong.
Veeva Systems offers cloud-based solutions for the pharmaceutical and life sciences industries.
Not only do they offer these cloud products, they are one of the best at what they do.
Veeva’s software-as-a-service model helps deliver industry-specific tools for customer relationship management, content management, and many other enterprise applications much like Salesforce.
Moving on, Veeva’s growth is projected to continue in the second quarter, with a projected bump of 25.6% on the back of nearly 24% revenue expansion.
Meanwhile, the cloud company’s full-year revenue is expected to climb 21.9% to reach $1.05 billion to help earnings climb by 24.5%.
Fiscal 2020 and 2021 are estimated to be homeruns too, so what’s not to like?
Hold the stock long term if you don’t trade options.
Here are the specific trades you need to execute this position:
SELL 23 September 2019 (VEEV) $135 calls at……......…….………$24.35
Buy to cover short 23 September 2019 (VEEV) $140 calls at…….$19.40
Net Proceeds:……………………..…….………..…..........................….....$4.95
Profit: $4.95 - $4.10 = $0.85
(23 X 100 X $0.85) = $1,955 or 19.55%
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Spread” by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
