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) April 2024 $260-$270 in-the-money vertical BULL CALL spread at $7.70
Opening Trade
3-14-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 13 contracts
We are going back into PANW to execute an in-the-money bull call spread.
PANW has stabilized in the short-term and it’s worth a trade. Look at a longer term chart and PANW has a lot of support as it still pumps out lofty growth.
It’s come back a little after that initial pop from a bad earnings report and it’s a good entry point right here.
PANW’s fiscal second-quarter earnings report and reduced 2024 guidance for PANW stock sent shares in cybersecurity companies cratering.
PANW’s decision to bundle more products in discounted packages as part of a "Platformization" strategy could spark an industry pricing war.
Nvidia’s huge earnings beat has now perpetuated the AI narrative and that means good news for the broader Nasdaq.
Don’t pay more than $8.15.
Here are the specific trades you need to execute this position:
Buy to Open 12 April 2024 (PANW) $260 calls at.…...…$30.50
Sell to short 12 April 2024 (PANW) 270 calls at………….$22.80
Net Cost:…………………...................…..…….………...…….....$7.70
Potential Profit: $10 - $7.70 = $2.30
(13 X 100 X $2.30) = $2,990 or 29.88% in 36 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.
