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.
Trade Alert - (PANW) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Palo Alto Networks (PANW) February 2024 $260-$270 vertical BULL CALL debit spread at $10.00
Closing Trade
2-16-2024
expiration date: February 16, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
With this trade, we really nailed the ballistic melt-up in Palo Alto Networks shares since January 8. We are now a mind-numbing 39% above the upper strike price!
Not bad.
Just to be clear, this position does not expire until after the close on Friday, February 16. I’m sending this expiration alert out now, so I don’t overwhelm you with too many expirations at max profit in one day.
As a result, you get to take home $1,560 or 14.95% in 26 trading days. Well done and on to the next trade.
If you can’t do options buy the stock. My long-term target for (PANW) is $400, up 27%.
Palo Alto Networks is the class act in the cybersecurity space. Virtually every manager I know either has the stock or is trying to get into it. Today the stock is in the process of engineering a major upside breakout.
Its total addressable market is a staggering $175 billion. As I never tire of pointing out to followers, hacking never takes a break, is always growing, and is recession-proof.
This WAS a bet that (PANW) would not fall below $270.00 by the February 16 option expiration tomorrow.
Here is the specific accounting you need to close out this position:
EXPIRATION of 12 February 2024 (PANW) $260 calls at………….….$106.46
EXPIRATION of short 12 February 2024 (PANW) $270 calls at………$96.46
Net PROCEEDS:………………………….………..………….…........................$10.00
Profit: $10.00 - $8.70 = $1.30
(12 X 100 X $1.30) = $1,560 or 14.95% in 26 trading days.
