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 profit if the momentum continues, at least a little.

The last 12 ideas which we have published here which have expired resulted in 11 gains averaging 39% (including the loss which was only 10% on one of the spreads).  If you had invested the same amount in each of the 12 ideas, you would have made 468% on that amount.  Of course, we can’t promise that future results will be this great.

Terry

Facebook (FB): Time to Buy The Dip?

Several analysts are expecting Facebook stock to continue higher, here are two of them – Facebook Inc Stock Can Still Deliver Value, Event at These Levels and Three stocks to buy on recent weakness.

FB broke above horizontal resistance from highs posted in July at $175 to hit fresh record highs at the start of the month.  The stock has since declined slightly in a low momentum correction.  The broken horizontal level now resides near a rising trendline that originates from a low printed at the end of 2016 to create a strong confluence of support to the downside.

*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 at least a little over the next six weeks.

Buy To Open FB 15Dec17 175 Puts (FB171215P175)
Sell To Open FB 15Dec17 180 Puts (FB171215P180) for a credit of $1.94 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when FB was trading at $179.  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 $192 and your broker would charge a $500 maintenance fee, making your investment $308 ($500 – $192).  If FB closes at any price above $180 on December 15, 2017, both options would expire worthless, and your return on the spread would be 62% (711% 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

This week we are featuring another of the Investor’s Business Daily (IBD) Top 50 List companies.  We use this list in one of our portfolios to identify stocks with momentum and place spreads that profit if the momentum continues, at least a little.

I would also like to include a table which reviews how the previous 12 Trading Idea of the Week selections have worked out in the real world.  We have had an exceptionally good record.

Terry

Coherent Inc. (COHR) Jumps After Earnings Beat, Is There More Upside Ahead?

Before we discuss this week’s trading idea, I would like to review the past 12 ideas we have published here.  Each of these ideas was first distributed to Terry’s Tips’ paid subscribers in our weekly Saturday Report, and then on Monday or Tuesday, to the free newsletter subscribers such as you.  Here are the results:

The expiration prices for the 3 spreads which expire next Friday are today’s prices.  All of them are safely above the max gain price for the spread.

The only losing trade would have been the BABA one which was a minor loss.  The stock closed at $.85 below the max gain price and we had collected $.75 from the spread.  Presumably, rather than accept this small loss, we would have rolled over the vertical credit spread to a future date.  If we had, it would now look pretty good because BABA closed yesterday at $186.41, well above the max gain 177 strike.

The average gain for the 12 spreads (including the loss) was 39%.  If you had risked the same amount on 12 trades that averaged a 39% gain, you would have picked up 468% on your original investment.  While these results are a extremely encouraging, we must recognize that the past few months have been ones of generally higher stock prices across the board.  Future results might not be this great.

Now, back to our Trading Idea of the Week:

Several analysts have expressed their bullish outlook towards Coherent Inc. following their recent earnings report.  Here are two of them – Coherent price target raised to $330 from $270 at Needham and Coherent Inc. can’t be more hot.  Just reaches record high.

From a technical perspective, COHR had been consolidating mostly sideways for nearly six months ahead of last week’s earnings report.  The earnings beat triggered a gap higher for a range break and the stock held gains to close the week out at record highs.  The range break suggests the broader bullish trend has resumed.

*source Tradingview.com

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

Buy To Open COHR 15Dec17 305 Puts (COHR171215P305)
Sell To Open COHR 15Dec17 310 Puts (COHR171215P310) for a credit of $2.53 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when COHR was trading near $309.  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 $251 and your broker would charge a $500 maintenance fee, making your investment $249 ($500 – $251).  If COHR closes at any price above $310 on December 15, 2017, both options would expire worthless, and your return on the spread would be 101% (1150% 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

Learn the Exact Details of the Options Strategies That Have Resulted in Average Gains of 120% so far in 2017…

…at a Near-Give-Away Price Never Offered Before

Terry’s Tips is an options newsletter that has been around for 16 years.  Over that time period, we have developed and refined several options strategies that are enjoying unprecedented success.

We carry out 10 separate options portfolios for our subscribers to follow on their own with our favorite brokerage tastyworks or by having the trades executed automatically through thinkorswim’s Auto-Trade program.

Each portfolio is carried out in a separate account available for everyone to see (we don’t just publicize the most successful ones).  Each portfolio employs a specific pre-defined strategy using one or more underlying stocks or ETPs (Exchange Traded Products).   Unlike other options newsletters, we include the actual commissions in all our results.

The composite average gain for 2017 for our 10 portfolios through the first week of November was 120%.  Subscribers who mirrored all 10 of our portfolios would have invested $48,600 in January.  Those portfolios were worth $107,103 last week.  But of course, you can mirror just the portfolios that you like or choose.

We have made these gains with various strategies including Credit Spreads and Selling Naked Puts.  But for the last 16 years our flagship strategy is what we call the 10K Strategy.  It involves selling short-term options on individual stocks and using longer-term (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.  The 10K Strategy is sort of like writing calls on steroids.  It is an amazingly simple strategy that really works with the one proviso, that you select a stock that stays flat or moves higher over time.

How else in today’s investment world of near-zero dividend yields can you expect to make these kinds of returns?  Find out exactly how to do it by buying yourself a Black Friday gift for yourself and your family.  They will love you for it.

Lowest Subscription Price Ever:  As a Black Friday special, we are offering the lowest subscription price that we have ever offered – our full package, including:

• Over 10 case study reports
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• a 14-day options tutorial program which will give you a solid background on options trading
• and two months of our weekly newsletter full of tradable option ideas.

Here is a sampling of the additional free reports you will get with a subscription to Terry’s Tips:

How We Made 100% on Apple

VXX – The Holy Grail for the 10K Strategy

Using the Vertical Credit Put Spread

Eight Consecutive Earnings Play Wins and What We Learned

An Options Strategy That Could Realistically Make 40% a Month

Two 2015 Case Studies of Option Portfolios – COST and SBUX

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If you are ready to commit for a longer time period, you can save even more with our half-price offer on our Premium service for an entire year.  This special offer includes everything in our basic service, and in addition, real-time trade alerts and full access to all 9 of our current actual portfolios so that you can Auto-Trade or follow any or all of them.  We have several levels of our Premium service, but this is the maximum level since it includes full access to all nine portfolios.  A year’s subscription to this maximum level would cost $1080.  With this half-price offer, the cost for a full year would be only $540.  Use the Special Code MAX17P.

This is a time-limited offer.  You must order by Monday, November 27, 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 Thanksgiving and Black Friday gift that is designed to deliver higher financial returns for the rest of your investing life. Just imagine sitting around at the family get together and explaining to your favorite know it all buy and hold uncle about Vertical Bull Put Spreads as his eyes glaze over.

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Happy trading.

Terry

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P.P.S. Use special code MAX17P to get the ultimate Premium Special for $540 (normally $1080)

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 profit if the momentum continues.  Actually, the stock can even decline a little for the maximum gain to be made.

The 10 portfolios carried out by Terry’s Tips for its paying subscribers had its best week ever last week, gaining an average of 9.1%.  The composite portfolio average for 2017 has soared to 120%.  Isn’t it time for you to see exactly how we are doing it?

Terry

Arista Networks (ANET) Hits Fresh All-Time Highs, What’s Next?

Several analysts are optimistic about Arista Network’s future following their earnings report last week, here are two of them – Arista Networks Keeps Enjoying Soaring Sales and Why Shares of Arista Networks Are Surging Today.

ANET fell under pressure last week ahead of its earnings report, falling just over 10% in a two-day correction.  The turn lower led to a break of the 20 period daily moving average as well as a rising trendline that had been in play for nearly three months.  However, the stock recovered after the earnings beat and closed the week out at a fresh all-time high.  Although the rising trendline is no longer in play as support, the break back above it as well as the moving average signals that buyers have regained control.

 

*source Tradingview.com

If you agree there’s further upside ahead for Arista Networks, 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 ANET 15Dec17 195 Puts (ANET171215P195)
Sell To Open ANET 15Dec17 200 Puts (ANET171215P200)for a credit of $2.23 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when ANET was trading near $201.  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 $221 and your broker would charge a $500 maintenance fee, making your investment $279 ($500 – $221).  If ANET closes at any price above $200 on December 15, 2017, both options would expire worthless, and your return on the spread would be 79% (741% 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