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) December 2024 $340-$350 in-the-money vertical BULL CALL spread at $8.35
Opening Trade
11-22-2024
expiration date: December 20, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
We are going back into PANW to execute an in-the-money bull call spread.
PANW was downgraded by an analyst and the stock is down over 5% this morning. This appears like a good entry point.
This is a good setup in the short term and the technicals look strong for the dip buyers in PANW.
Therefore, we are executing a slightly bullish trade in cyber security stock PANW.
Don’t pay more than $8.45.
Here are the specific trades you need to execute this position:
Buy to Open 12 December 2024 (PANW) $340 calls at……… …$40.15
Sell to short 12 December 2024 (PANW) $350 calls at………….$31.80
Net Cost:……………………..…….………..……..................................$8.35
Potential Profit: $10 - $8.35 = $1.65
(12 X 100 X $1.65) = $1,980 or 19.76% in 28 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.