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Posts Tagged ‘Calls’

Xilinx (XLNX) Surges to Fresh Yearly Highs, What’s Next?

Sunday, November 11th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Xilinx (XLNX) Surges to Fresh Yearly Highs, What’s Next?

Xilinx has been receiving a lot of media attention as of late, these two articles shed some light on what analysts are expecting from the company – What Makes Xilinx a Strong Momentum Stock: Buy Now? And Has Xilinx Outpaced Other Computer and Technology Stocks This Year?

XLNX reversed sharply higher a few weeks back after their earnings report exceeded expectations.  Since then, the stock price regained it’s 20-day moving average, and more importantly, broke to a fresh 18-year high to clearly signal that bulls are in control.  A consolidation has taken place over the past week which is common following an important techincal break and most often precedes a continuation in the direction of the trend.

XLNX Chart November 2018

XLNX Chart November 2018

*source Tradingview.com

If you agree there’s further upside ahead for XLNL, consider this trade which is a bet that the stock will continue to advance over the next six weeks, or at least not decline very much.

Buy To Open XLNL 21DEC18 82.5 Puts (XLNL181221P82.5)
Sell To Open XLNL 21DEC18 85 Puts (XLNL181221P85) for a credit of $1.05 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when XLNL was trading near $86.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $102.50 and your broker would charge a $250 maintenance fee, making your investment $147.50 ($250 – $102.50).  If XLNL closes at any price above $85 on December 21, both options would expire worthless, and your return on the spread would be 69% (681% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates November 8, 2018

IBD Underlying Updates November 8, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Can PayPal (PYPL) Continue It’s Earnings-Driven Momentum?

Sunday, October 28th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Last week was an awful one for the market.  SPY fell 4% after whip-sawing both up and down all week.  Most option portfolios probably suffered as well.  We were delighted that our newest portfolio which trades options on MSFT notched a gain of 20.4% for this otherwise bad week for the market.  Chalk up another victory for well-executed option strategies.

Terry

Can PayPal (PYPL) Continue It’s Earnings-Driven Momentum?

PayPal received a recent boost from it’s earnings report and these Seeking Alpha articles suggest it can continue the upside momentum – PayPal: It’s A Buy and It’s Not Too Late To Buy PayPal.

Payal appears to be supported near the $83 price point which was where the stock gapped up to following their earnings report earlier this month.  The 20 and 50-day moving averages are converging in this area as well to offer further technical support.  In the event of a dip lower, further support near the psychological $80 handle is likely to trigger strong buying as technical traders often look to position following a gap close.

PYPL Chart October 2018

PYPL Chart October 2018

*source Tradingview.com

If you agree there’s further upside ahead for PYPL, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open PYPL 30NOV18 80 Puts (PYPL181130P80)
Sell To Open PYPL 30NOV18 83 Puts (PYPL181130P83) for a credit of $1.06 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when PYPL was trading near $83.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $103.50 and your broker would charge a $300 maintenance fee, making your investment $196.50 ($300 – $103.50).  If PYPL closes at any price above $83 on November 30, both options would expire worthless, and your return on the spread would be 53% (605% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates October 25, 2018

IBD Underlying Updates October 25, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Consider Ulta Beauty (ULTA) Following the Technical Break

Sunday, October 14th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Consider Ulta Beauty (ULTA) Following the Technical Break

Several analysts are optimistic regarding the outlook for Ulta Beauty stock, here are two of them – Ulta Beauty Up 19% in 3 Months on Strategic Efforts and David Rolfe Comments on Ulta Beauty.

ULTA made a notable technical break in early September by clearing above horizontal resistance at $260 that had held it lower throughout the summer.  The stock has corrected lower since hitting highs around 290 which may offer an attractive entry point.  The recent decline has not accompanied much downside momentum, which is especially significant when considering overal market conditions, suggesting a correction is taking place rather than a turn in the near-term trend.

ULTA Chart October 2018

ULTA Chart October 2018

*source Tradingview.com

If you agree there’s further upside ahead for ULTA, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open ULTA 16NOV18 270 Puts (ULTA181116P270)
Sell To Open ULTA 16NOV18 275 Puts (ULTA181116P275) for a credit of $2.18 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when ULTA was trading near $276.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $215.50 and your broker would charge a $500 maintenance fee, making your investment $284.50 ($500 – $215.50).  If ULTA closes at any price above $275 on November 16, both options would expire worthless, and your return on the spread would be 76% (867% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates October 11, 2018

IBD Underlying Updates October 11, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Has Netflix (NFLX) Found A Bottom?

Saturday, September 15th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.  The actual portfolio that Terry’s Tips carries out with these plays we send to you each week has gained 98.5% so far this year.  We started out 2018 with $5000 in the portfolio and withdrew that amount in June so that subscribers who mirrored it in their own account or had trades executed for them with the free Auto-Trade service at thinkorswim have almost $5000 left and it is entirely profits for them.

Terry

Has Netflix (NFLX) Found A Bottom?

Despite a recent correction, market sentiment towards Netflix stock remains positive while certain analysts see a notable upside from current levels.  Take a look at this recent article posted on Investopedia that states a 30% rally could be in the cards for NFLX and the following article posted on Seeking Alpha that builds a strong case for remaining bullish.

There are several technical developments over the last month or so that suggest Netflix has turned bullish once again.  The stock price is seen climbing above horizontal resistance at $356 and holding above the 20-day moving average.  Aside from that, a recent convergence with the S&P 500 might be sending the strongest signal of all.  Note that NFLX diverged from the index for about a month starting from mid-July to correct lower.  Since around the middle of August, the stock price has once regained its correlation with the popular index, which is often a tell that an important bottom might be in place.  The S&P 500 is added to the chart below and denoted in bars to illustrate the divergence and subsequent convergence.

NFLX Chart September 2018

NFLX Chart September 2018

*source Tradingview.com

If you agree there’s further upside ahead for NFLX, consider this trade which is a bet that the stock will continue to advance over the next four weeks, at least a little bit.

Buy To Open NFLX 12OCT18 362.5 Puts (NFLX181012P362.5)
Sell To Open NFLX 12OCT18 365 Puts (NFLX181012P365) for a credit of $1.18 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when NFLX was trading near $365.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $115.50 and your broker would charge a $250 maintenance fee, making your investment $134.50 ($250 – $115.50).  If NFLX closes at any price above $365 on October 12, both options would expire worthless, and your return on the spread would be 86% (1256% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates September 13, 2018

IBD Underlying Updates September 13, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Lululemon (LULU) Stock Price Surges Following Earnings

Sunday, June 24th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

I thought I might share with you the first paragraph of this week’s report to our paying subscribers – “Bad Week for the Market (Down 1%), But Our Composite Portfolio Average Gains 5% Thanks to Blow-Out Week for Wiley Wolf (up 47%): A week ago, we were celebrating a 26.5% gain in Wiley Wolf when FB gained 3.6%, but that was nothing compared to this week’s colossal 47.6% gain on a 3.0% rise in the stock.  In two weeks, the portfolio has moved from a value of $4,472 to today’s $8,353.  The 10K Strategy can deliver extraordinary results when you are leaning to the bullish side and the underlying cooperates by going up (which you expect it to do or you wouldn’t have selected that stock in the first place).  Positive results from this strategy also appeared this week in Rising Tide where the portfolio gained 10% while the underlying MA rose 1%.”

I hope you enjoy this week’s trading idea.

Terry

Lululemon (LULU) Stock Price Surges Following Earnings

LULU rose to record highs earlier this month following its earnings report.  Several analysts think the stock can go a lot higher, here are two of them – Was Lululemon Athletica Inc’s Earnings Growth Better Than The Industry’s? and 7 Debt-Free Companies Doing Big Stock Buybacks

Lululemon Athletica’s stock price gapped higher following the earnings announcement, reaching a high just shy of the $130 handle.  Momentum has slowed somewhat, yet the technicals remain supportive as the stock trades within a rising up channel and has held above it’s 20-day moving average.

LULU Chart June 2018

LULU Chart June 2018

If you agree there’s further upside ahead for LULU, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open LULU 27JUL18 120 Puts (LULU180727P120)
Sell To Open LULU 27JUL18 124 Puts (LULU180727P124) for a credit of $1.48 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when LULU was trading near $124.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $145.50 and your broker would charge a $400 maintenance fee, making your investment $254.50 ($400 – $145.50).  If LULU closes at any price above $124 on July 27, both options would expire worthless, and your return on the spread would be 57% (650% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates June 21, 2018

IBD Underlying Updates June 21, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Has The Tide Turned in Paycom Software (PAYC)?

Saturday, June 16th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Has The Tide Turned in Paycom Software (PAYC)?

Investor’s Business Daily, the website belonging to the creators of the IBD Top 50 list, named PAYC their IBD Stock of the Day on Friday.  Take a look at the article here for the reason behind the choice.  As well, an article published on The Motley Fool explains why Paycom Software is one of three stocks the analyst just added to his retirement portfolio.

After consolidating lower within a correction for about a month or so, PAYC has turned decisively higher, crossing above an important barrier.  Two prior attempts since May at the horizontal resistance level near $110 resulted in a notable correction, however, the stock managed to climb above it last week to signal that bulls may be retaking control.  The level has been significant since April, acting as both support and resistance.  In addition to the horizontal level, the stock has comfortably regained its 20-day moving average and trades near 52-week highs.

PAYC Chart June 2018

PAYC Chart June 2018

*source Tradingview.com

If you agree there’s further upside ahead for PAYC, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open PAYC 20JUL18 105 Puts (PAYC180720P105)
Sell To Open PAYC 20JUL18 110 Puts (PAYC180720P110) for a credit of $1.33 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when PAYC was trading near $112.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $130.50 and your broker would charge a $500 maintenance fee, making your investment $369.50 ($500 – $130.50).  If PAYC closes at any price above $110 on July 20, both options would expire worthless, and your return on the spread would be 35% (399% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates June 14, 2018

IBD Underlying Updates June 14, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Grubhub (GRUB) Offers An Attractive Entry Point

Monday, June 4th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

The actual Terry’s Tips  portfolio that places trades that you read about here has gained 99.7% so far in 2018.  That’s pretty close to doubling our money in less than six months, and all the paying Terry’s Tips subscribers who are following that portfolio, either on their own or through the free Auto-Trade service offered by thinkorswim are happy campers right now.

Terry

Grubhub (GRUB) Offers An Attractive Entry Point

Grubhub’s stock price recently broke higher and several analysts expect the upside momentum to continue.  This article published on Benzinga includes a target that suggests about a 20% upside.  A detailed article outlining why there could be more upside in GRUB was also published on InvestorPlace.  While the second article has a bit more of a conservative target, it still points to a potential 10% gain in the stock price.

The GRUB technical chart is signaling a bullish continuation.  The stock price broke out from a bullish flag pattern in early May and has more recently cleared above a clear horizontal resistance level found near $105.  The same level should protect any corrections for bulls to remain in control.  The stock price has also consistently traded above its 20-day moving average since the bull flag was activated.

GRUB Chart June 2018

GRUB Chart June 2018

*source Tradingview.com

If you agree there’s further upside ahead for GRUB, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open GRUB 29JUN18 105 Puts (GRUB180629P105)
Sell To Open GRUB 29JUN18 107 Puts (GRUB180629P107) for a credit of $0.83 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when GRUB was trading near $108.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $80.50 and your broker would charge a $200 maintenance fee, making your investment $119.50 ($200 – $80.50).  If GRUB closes at any price above $107 on June 29, both options would expire worthless, and your return on the spread would be 67% (978% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates May 31, 2018

IBD Underlying Updates May 31, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Bauzun (BZUN) Breaks To Fresh Highs Following Earnings Report

Sunday, May 20th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Bauzun (BZUN) Breaks To Fresh Highs Following Earnings Report

Bauzun stock rose sharply late last week following their earnings figures.  Investor Business Daily has provided a narrative and an article on Seeking Alpha argues why BZUN is a stock worth holding.

BZUN had consolidated for about two and a half months prior to last week’s break.  The consolidation took the form of a triangle pattern and the bullish break suggests the stock has resumed its uptrend.  Near-term support will be at the upper line of the broken triangle pattern.  Upside momentum has been strong and a sustained break above the psychological $50 barrier are additional points that should encourage bulls.

BZUN Chart May 2018

BZUN Chart May 2018

*source Tradingview.com

If you agree there’s further upside ahead for BZUN, consider this trade which is a bet that the stock will continue to advance over the next four weeks, or at least a little bit.

Buy To Open BZUN 15JUN18 50 Puts (BZUN180615P50)
Sell To Open BZUN 15JUN18 55 Puts (BZUN180615P55) for a credit of $1.88 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when BZUN was trading near $55.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $185.50 and your broker would charge a $500 maintenance fee, making your investment $314.50 ($500 – $185.50).  If BZUN closes at any price above $55 on June 15, both options would expire worthless, and your return on the spread would be 59% (861% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates May17, 2018

IBD Underlying Updates May17, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Consider IPG Photonics (IPGP) Following the Technical Breakout

Monday, May 14th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Consider IPG Photonics (IPGP) Following the Technical Breakout

In addition to being listed as one of the IBD Top 50 companies, Investor’s Business Daily recently wrote about IPGP, outlining the reasons why the growth stock is setting up for another advance.  Also take a look at this publication which discusses why IPGP is trending.

IPGP broke higher late last week from a bullish flag pattern that has been setting up for most of the year thus far.  Technical traders tend to keep a close eye on flag patterns, especially in assets that have had a strong trend which IPGP certainly displayed in 2017.  Technical support is found nearby from a horizontal level at $248 which marks last years high.  Also near the level is additional support from the top of the broken flag pattern.

IPGP Chart May 2018 credit spread

IPGP Chart May 2018 vertical spread

*source Tradingview.com

If you agree there’s further upside ahead for IPGP, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open IPGP 15JUN18 240 Puts (IPGP180615P240)
Sell To Open IPGP 15JUN18 250 Puts (IPGP180615P250) for a credit of $3.58 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when IPGP was trading near $151.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $355.50 and your broker would charge a $1000 maintenance fee, making your investment $644.50 ($1000 – 355.50).  If IPGP closes at any price above $250 on June 15, both options would expire worthless, and your return on the spread would be 55% (627% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates May10, 2018

IBD Underlying Updates May10, 2018

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Align Technologies Consolidates In a Range, Is It Ready To Break Higher?

Sunday, May 6th, 2018

This week we are looking at another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our options portfolios to spot outperforming stocks and place option spreads that take advantage of the momentum.

Terry

Align Technologies Consolidates In a Range, Is It Ready To Break Higher?

Align Technology posted a strong performance last year.  Not only did it outperform its sector, it was also ranked the top-performing stock in the S&P 500 for 2017.  The following articles outline the details – 3 Growth Stocks I’m Holding Onto No Matter How Bumpy the Market Gets and Is Align Technology (ALGN) Outperforming Other Medical Stocks This Year?

From a technical perspective, ALGN has been mostly consolidating within a range over the last few months.  Ahead of the recent earning’s call, the stock briefly dipped below range support at $243 but it managed to regain it following the earnings report.  Current prices offer an opportunity to buy the stock near the lower bound of the consolidation.  There is some potential for an upside break, in line with the broader trend.  The rationale being that a quite few of the stocks listed in the IBD Top 50 list have shown strength in the past week and some have even broken to fresh highs.  This signals some potential that the bullish trend may have resumed in the markets.

ALGN Chart May 2018 - vertical put spread

ALGN Chart May 2018 – Free Trade

*source Tradingview.com

If you agree there’s further upside ahead for ALGN, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.

Buy To Open ALGN 08JUN18 255 Puts (ALGN180608P255)
Sell To Open ALGN 08JUN18 257.5 Puts (ALGN180608P257.5) for a credit of $1.13 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when ALGN was trading near $259.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers).  Each contract would then yield $110.50 and your broker would charge a $250.00 maintenance fee, making your investment $139.50 ($250 – $110.50).  If ALGN closes at any price above $257.50 on June 8, both options would expire worthless, and your return on the spread would be 79% (904% annualized).

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run.  Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.

As with all investments, you should only make option trades with money that you can truly afford to lose.

Happy trading,

Terry

Making 36%

Making 36% — A Duffer's Guide to Breaking Par in the Market Every Year in Good Years and Bad

This book may not improve your golf game, but it might change your financial situation so that you will have more time for the greens and fairways (and sometimes the woods).

Learn why Dr. Allen believes that the 10K Strategy is less risky than owning stocks or mutual funds, and why it is especially appropriate for your IRA.

Order Now

Success Stories

I have been trading the equity markets with many different strategies for over 40 years. Terry Allen's strategies have been the most consistent money makers for me. I used them during the 2008 melt-down, to earn over 50% annualized return, while all my neighbors were crying about their losses.

~ John Collins