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 Alert - Palo Alto Networks, Inc. (PANW) – BUY
Buy Palo Alto Networks, Inc. (PANW) February 2025 $150-$155 in-the-money vertical BULL CALL spread at $4.10
Opening Trade
1-15-2025
expiration date: February 21, 2025
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Tactical trade right here in Palo Alto Networks, Inc. (PANW). This is a $200 stock that got hit in the tech selloff. The lower inflation number has given some breathing room to tech stocks.
More aggressive traders should raise their strike prices to $160 or $165. There is substantial technical support at $170.
Don’t pay more than $4.20
Here are the specific trades you need to execute this position:
Buy to Open 24 February 2025 (PANW) $150 calls at…….……$26.30
Sell to short 24 February 2025 (PANW) $155 calls at………….$22.20
Net Cost:……………………..…….………..…….................................$4.10
Potential Profit: $5 - $4.10 = $0.90
(24 X 100 X $0.90) = $2,160 or 21.95% in 37 days
If you are uncertain about how to execute an options spread, please watch my training video 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.