Monthly Archives: September 2017

Advanced Energy Industries (AEIS) Offers An Attractive Entry Point

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 portfolios to find outperforming stocks and place spreads that profit if the upward momentum continues for about four more weeks.  Actually, the stock can even decline a little for the maximum gain to be realized on these spreads.

2017 has been a good year for the market.  The S&P 500 is up almost 11%.  The 10 options portfolios carried out by Terry’s Tips have gained a composite average of 75.6% so far this year (after paying all the commissions).  Our strategies have gained almost 7 times as much as the market has picked up.  Isn’t it about time that you learned more about the wonderful world of options?

Terry

Advanced Energy Industries (AEIS) Offers An Attractive Entry Point

Several analysts are expecting AEIS to continue higher.  Needham analyst Edward Monk recently reiterated a Buy rating and set a price target of $80.  Another analyst has made a strong fundamental case for further upside in the stock price in his article posted at Seeking Alpha, highlighting impressive growth, no long-term debt, and a strong balance sheet.

The technical outlook for AEIS suggests the stock is ready to resume higher.  The stock recently climbed back above a significant horizontal level at $72.88 which was major resistance in 2000 on a monthly chart.  A rising trendline that originates from a low posted in early July has held declines and a declining trendline that connects the top from July with a high posted in early September has been breached to the upside.  The same declining trendline held the correction last week and there was a great deal of momentum behind the recovery from it.

AEIS Chart September 2017

AEIS Chart September 2017

*source Tradingview.com

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

Buy To Open AEIS 20Oct17 70 Puts (AEIS171020P70)
Sell To Open AEIS 20Oct17 75 Puts (AEIS171020P75) for a credit of $1.25 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when AEIS was trading near $76.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

If you use our favorite broker for this trade, tastyworks, your commission on this trade will only be $1 per opening contract ($2 per spread) (and there is no commission on closing trades, only the $.10 clearing fee).  Each contract would then yield $123 and your broker would charge a $500 maintenance fee, making your investment $377 ($500 – $123).  If AEIS closes at any price above $75 on October 20, 2017, both options would expire worthless, and your return on the spread would be 32% (474% annualized).

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

IBD Underlying Updates September 22, 2017

IBD Underlying Updates September 22, 2017

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

Will Alibaba (BABA) Continue The Upward Momentum?

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 portfolios to identify stocks that have displayed strong upward momentum and place spreads that profit it the momentum continues for about six weeks.

Last week, the 10 Terry’s Tips portfolios enjoyed another banner week. While SPY rose 1.1%, all 10 portfolios gained an average of 6.9% and are now up 75% for the year to date.  Isn’t it time you took a look at how we are doing this?  You just might learn something new.

Terry

Will Alibaba (BABA) Continue The Upward Momentum?

Some well-known analysts are quite bullish Alibaba stock and outline why they expect further upside here – Why Druckenmiller Is Optimistic about Chinese Consumer Stocks and Why Goldman Sachs is Optimistic about Alibaba.

BABA has been trending higher since late 2015 with a boost in upside momentum since the start of the year.  The stock gapped higher following the last earnings report and recently broke to record highs without closing the gap.  The 20-day moving average has held the stock higher since the middle of August and offers strong downside support as it resides within proximity of last month’s close of 172.47

BABA Chart September 2017

BABA Chart September 2017

*source Tradingview.com

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

Buy To Open BABA 27Oct17 175 Puts (BABA171027P175)
Sell To Open BABA 27Oct17 177.5 Puts (BABA171027P177.5) for a credit of $0.75 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when BABA was trading near $177.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

If you use our favorite broker for this trade, tastyworks, your commission on this trade will only be $1 per opening contract ($2 per spread) (and there is no commission on closing trades, only the $.10 clearing fee).  Each contract would then yield $73 and your broker would charge a $250 maintenance fee, making your investment $177 ($250 – $73).  If BABA closes at any price above $177.50 on October 27, 2017, both options would expire worthless, and your return on the spread would be 41% (357% annualized).

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

IBD Underlying Updates September 15, 2017

IBD Underlying Updates September 15, 2017

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

Electronic Arts (EA) Stock Appears Undervalued After Analyst Upgrades

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 portfolios to spot outperforming stocks and place spreads that take advantage of the momentum.

Also, don’t forget that we are now offering our

Lowest Subscription Price Ever:  As a back-to-school special, we are offering the lowest subscription price that we have ever offered – our full package, including all the free reports, my White Paper, which explains my favorite option strategies in detail, and shows you exactly how to carry them out on your own, a 14-day options tutorial program which will give you a solid background on option trading, and two months of our weekly newsletter full of tradable option ideas.  All this for a one-time fee of $39.95, less than half the cost of the White Paper alone ($79.95).

For this lowest-price-ever $39.95 offer, click here, enter Special Code BTS17 (or BTS17P for Premium Service – $79.95).

This is a time-limited offer.  You must order by Monday, September 18, 2017.  That’s when the half-price offer expires, and you will have to go back to the same old investment strategy that you have had limited success with for so long (if you are like most investors).

Terry

Electronic Arts (EA) Stock Appears Undervalued After Analyst Upgrades

Analysts at Goldman Sachs are optimistic of the gaming industry and have initiated Electronic Arts with a Buy and a $136 price target.  Several other analysts have rated the stock as a Buy including the Jefferies Group who have recently restated their rating with a $135 price target.

 

From a technical perspective, EA has recently scaled above a notable hurdle at $116 which had capped gains in June.  Dips towards the level have been met with buyers since the middle of September, establishing the horizontal level as strong support.  A rising trend channel has encompassed price action since late July and the lower bound of the channel offers additional support slightly ahead of the horizontal level.

*source Tradingview.com

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

Buy To Open EA 20Oct17 110 Puts (EA171020P110)
Sell To Open EA 20Oct17 115 Puts (EA171020P115) for a credit of $1.35 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when EA was trading near $118.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

If you use our favorite broker for this trade, tastyworks, your commission on this trade will only be $1 per opening contract ($2 per spread) (and there is no commission on closing trades, only the $.10 clearing fee).  Each contract would then yield $133 and your broker would charge a $500 maintenance fee, making your investment $367 ($500 – $133).  If EA closes at any price above $115 on October 20, 2017, both options would expire worthless, and your return on the spread would be 36% (314% 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.  It is interesting to see that MA was removed from the list this week.  This seems unusual since the stock moved up almost $4 last week.  This is the stock that is traded in the Terry’s Tips  portfolio called Rising Tide.  This portfolio has gained 120% so far in 2017 while MA has gained 31%.  We have almost done 4 times as great as the stock price increase.

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

Back-to-School Special – Lowest Price Ever

Back-to-School Special – Lowest Price Ever

Why must back-to-school purchases only be for the kids?  You got them new back-packs and pens and pads and lots of other things to help them make their learning experience a little easier or fun.

But how about yourself?   How about adults who would like to learn a little something, too?  What if you would like to learn how to dramatically improve your investment results?  Don’t you deserve a little something to help make that learning experience possible?

What better back-to-school gift could there be than a subscription to Terry’s Tips at the lowest price ever?  You will learn exactly how we have made over 100% so far this year trading our favorite strategy on two different stocks, and how you can do it yourself with your favorite stock.

We carry out 10 different portfolios with different options strategies, and you can learn each strategy and follow the actual results (including commissions) with all the trades we have made.  The composite average gain the 10 portfolios for the first 8 months of 2017 has been over 60%.

At the beginning of 2017, we set up an account to use our favorite strategy (we call it the 10k Strategy) using Mastercard (MA) options. MA has had a good run, gaining 27% so far this year.  Our portfolio has gained 110%, about 4 times as much.  Another portfolio was lucky enough to select Facebook (FB) as its underlying.  FB has gained 50% through the first 8 months of 2017 while our portfolio has gained 338%, over 6 times as much. Come on board and see every trade that we made in all 10 portfolios.

Many subscribers to Terry’s Tips have followed along with these portfolios since the beginning, having all their trades made for them through the Auto-Trade program at thinkorswim.  Others have followed our trades at another broker.  Regardless of where they traded, they are all happy campers right now.

We have made these gains with what we call the 10K Strategy.  It involves selling short-term options on individual stocks and using longer-term options (or LEAPS) as collateral.  It is sort of like writing calls, except that you don’t have to put up all that cash to buy 100 or 1000 shares of the stock.   It really works, especially if you select a stock that stays flat or moves higher over time.

We have other portfolios which have more modest goals.  Our most conservative portfolio selected 5 blue chip companies at the beginning of 2017 and used a strategy that would make a gain as long as these companies did not fall by 10% over the course of the year.  The annual goal for this portfolio was 30%, but it has over-achieved, picking up 32% so far, and is guaranteed to make 40% for the year as long as the underlying stocks don’t fall over 10% from here. (One of the underlyings, (JNJ) can only fall 6% for us to make the 40%.)

Another conservative portfolio was set up to make over 30% for the year as long as the overall market (the S&P 500) did not fall by more than 5% over the course of the year.  As you may know, the market has done quite well so far, gaining almost 10%, while our portfolio could be closed out for a 32% gain right now, and is on target to gain 40% for the year unless SPY drops over 15% between now and the end of the year.

These portfolios are carried out in separate broker accounts for our subscribers to follow.  We count all the commissions and don’t hide any of the trades (like many newsletters do).  Don’t you think you owe it to yourself to learn how we have done it and how you can do it on your own?

Lowest Subscription Price Ever:  As a back-to-school special, we are offering the lowest subscription price that we have ever offered – our full package, including all the free reports, my White Paper, which explains my favorite option strategies in detail, and shows you exactly how to carry them out on your own, a 14-day options tutorial program which will give you a solid background on option trading, and two months of our weekly newsletter full of tradable option ideas.  All this for a one-time fee of $39.95, less than half the cost of the White Paper alone ($79.95).

For this lowest-price-ever $39.95 offer, click here, enter Special Code BTS17 (or BTS17P for Premium Service – $79.95).

This is a time-limited offer.  You must order by Monday, September 18, 2017.  That’s when the half-price offer expires, and you will have to go back to the same old investment strategy that you have had limited success with for so long (if you are like most investors).

This is the perfect time to give you and your family the perfect back-to-school gift that is designed to deliver higher financial returns for the rest of your investing life.

I look forward to helping you get the school year started off right by sharing this valuable investment information with you at the lowest price ever. It may take you a little homework, but I am sure you will end up thinking it was well worth the investment.

Happy trading.

Terry

P.S.  If you would have any questions about this offer or Terry’s Tips, please call Seth Allen, our Senior Vice President at 800-803-4595.  Or make this investment in yourself at the lowest price ever offered in our 16 years of publication – only $39.95 for our entire package.  Get it here using Special Code BTS17 (or BTS17P for Premium Service – $79.95).   Do it today, before you forget and lose out.  This offer expires on Monday, September 18, 2017.

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

Facebook (FB) Is Set To Resume Higher After The Price Correction

This week we are discussing a well-known company that is listed on the Investor’s Business Daily (IBD) Top 50 List.  In one of our portfolio’s, we screen this list to identify trending stocks to place spreads that profit if the stock continues higher.  Actually, the stock can even decline a little to realize the maximum gain.

Terry’s Tips carries out 10 different portfolios for paying subscribers.  Each portfolio is set up in an actual broker account and all results include full commissions.  Last week was an unusually good one for these portfolios – every one of them made gains, and the average composite gain was a whopping 8.9%.  So far in 2017, these portfolios have picked up an average of 67.8%.  How sweet it is.

Terry

Facebook (FB) Is Set To Resume Higher After The Price Correction

Several analysts believe there is further upside ahead for Facebook, here are two of them – Why Facebook Inc (FB) Stock Can Still Run Much Higher and Flagging Facebook Inc (FB) Stock for a Bullish Breakout.

The second article identifies a bull flag pattern which offers a technical signal for a bullish continuation.  Alternatively, the price action that takes place from around the end of July to late September can be viewed as a pennant.  Both patterns signal the same thing which is a continuation of the bullish trend.

Continuation patterns tend to be respected by technical traders, especially when it follows a strong uptrend which has been the case with Facebook.

FB Chart September 2017

FB Chart September 2017

*source Tradingview.com

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

Buy To Open FB 20Oct17 165 Puts (FB171020P165)
Sell To Open FB 20Oct17 170 Puts (FB171020P170) for a credit of $1.59 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when FB was trading near $172.  Unless the stock rallies quickly from here, you should be able to get close to this amount.

If you use our favorite broker for this trade, tastyworks, your commission on this trade will only be $1 per opening contract ($2 per spread) (and there is no commission on closing trades, only the $.10 clearing fee).  Each contract would then yield $157 and your broker would charge a $500 maintenance fee, making your investment $343 ($500 – $157).  If FB closes at any price above $170 on October 20, 2017, both options would expire worthless, and your return on the spread would be 46% (340% annualized).

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

IBD Underlying Updates September 1, 2017

IBD Underlying Updates September 1, 2017

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