Terry's Tips Stock Options Trading Blog
April 5th, 2018
Lam Research (LRCX) announces earnings after the close on Tuesday, April 17, 2018. The stock has been on a downtrend for the past several weeks, a good indication that expectations are seriously lowered. We have seen many instances when lowered expectations have resulted in a higher post-announcement date regardless of how well or poorly the actual results were compared to estimates. If you agree with this prognosis, you might consider making these trades (when the stock is trading about $196):
Buy To Open # LRCX 18May18 180 puts (LRCX180518P180)
Sell To Open # LRCX 20Apr18 195 puts (LRCX180420P195) for a debit of $2.20 (buying a diagonal)
Buy To Open # LRCX 18May18 220 calls (LRCX180518C220)
Sell Open # LRCX 20Apr18 205 calls (LRCX180420C205) for a credit of …
Tags: Diagonal Condor Earnings Strategy, LRCX, Monthly Options, Portfolio, Profit, profits, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, Weekly Options
Posted in Earnings Announcement Options Strategy, Last Minute Strategy, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
April 3rd, 2018
Carmax (KMX) announces earnings before the market opens on Wednesday, April 4, 2018. If anyone would like to place the spread trade that we suggest below, the order must be placed no later than the market close on Tuesday, April 3rd.
Here are the numbers we compiled for KMX for the last eight quarters:
Tags: Calls, Diagonal Condor Earnings Strategy, diagonal spreads, Earnings Announcement, Earnings Option Strategy, Earnings Play, implied volatility, KMX, Monthly Options, Portfolio, Profit, profits, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, Weekly Options
Posted in Earnings Announcement Options Strategy, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
April 1st, 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
Is Stamps.com (STMP) Ready to Resume Higher?
Zacks research recently wrote a compelling article outlining why STMP is poised for further gains. As well, this analyst believes there is potential for about a 30% upside based on their recent price target revision.
Tags: Auto-Trade, Bull Put Credit Spread, Bullish Options strategies, Calls, Credit Spreads, Monthly Options, Portfolio, profits, Puts, Risk, STMP, TastyWorks, Terry's Tips, thinkorswim, Weekly Options
Posted in 10K Strategies, Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
March 26th, 2018
Summary of Strategy: Based on 17 years of studying price changes following an earnings announcement, Terry’s Tips has designed a strategy which has a high probability of successfully navigating the extreme volatility that usually accompanies quarterly earnings reports. The strategy is based on the observation that there is very little correlation between the actual numbers reported and what the stock does after the announcement. Stock price fluctuations tend to be larger in announcement weeks and smaller in subsequent weeks. That is just about all we can say about most earnings events, except that we have identified one indicator that appears an average of only once a year for most companies, and when this indicator is triggered, the stock has a much higher probability of going up than down.
The Diagonal Condor Earnings Strategy only applies to . . .
Tags: Earnings Option Strategy, Earnings Play, RHT
Posted in Earnings Announcement Options Strategy, Monthly Options, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
March 26th, 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 Arista Networks (ANET): Should You Buy the Dip? Upside price targets for Arista […]
Tags: ANET, autotrade, Bull Put Credit Spread, Calls, Credit Spreads, Monthly Options, portfolios, profits, Puts, Risk, tastytrades, TastyWorks, Terry's Tips, terrystips, thinkorswim, Weekly Options
Posted in Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
March 18th, 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 Terry’s Tips portfolio that trades these spreads in an actual account for subscribers to follow on their own or have trades made for them in their account through the free Auto-Trade service offered by thinkorswim has gained 79% so far in 2018.
Terry
Nvidia (NVDA) Is on the Verge of a Big Breakout
Several analysts have an optimistic outlook towards NVDA despite the stock trading near some important resistance. Here are two of them – Things Are Going Right for NVIDIA and AMD and Semiconductor Stocks Soar to Highest Level in Decades Despite Deal Woes.
Tags: autotrade, Bull Put Credit Spread, Bullish Options strategies, Calls, IBD, Investors Business Daily, NVDA, portfolios, Profit, Puts, Risk, TastyWorks, tdameritrade, Terry's Tips, thinkorswim, Vertical Put Spread, Weekly Options
Posted in 10K Strategies, Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
March 12th, 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 at Terry’s Tips where we place the trades we tell you about a couple of days later is now ahead 84% so far in 2018, and that includes our closing out the BABA spread last week at a slight loss when we could have made the max gain if we had waited three more days until expiration. Even we make bad trades once in a while (although we still believe we made the prudent move – no one could have predicted that BABA would soar $11 in the last three days before expiration).
Terry
Will Paypal (PYPL) Continue Its Upward Momentum?
Several articles have recently been published on the positive outlook for PYPL. Here are two of them – Paypal Holdings Stock Is Itching for a Breakout and BMO Capital Markets Boosts Paypal Price Target to $89.00.
Tags: Auto-Trade, autotrade, Bull Put Credit Spread, Bullish Options strategies, Calls, Credit Spreads, paypal, portfolios, Profit, profits, Puts, PYPL, Risk, stock options, tastworks, Terry's Tips, thinkorswim, Vertical Put Spread, Volatility
Posted in 10K Strategies, Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
March 5th, 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
TD Ameritrade (AMTD): A Stable and Consistent Player
Several analysts have a bullish outlook for TD Ameritrade, here are two of them: TD Ameritrade Rating Reiterated by Goldman Sachs Group and TD Ameritrade PT Raised to $61.00
AMTD faced some volatile price action in February as the global equity markets fell under pressure and broadly corrected lower. In the past week, AMTD broke to a fresh 19 year high prior to pulling back. The bullish break is suggesting the stock has resumed higher within its broader uptrend while the pullback offers an entry point against support from the 20-period daily moving average.
Tags: Ameritrade, AMTD, autotrade, Bull Put Credit Spread, Bullish Options strategies, Calls, Credit Spreads, portfolios, profits, Puts, Risk, TastyWorks, tdameritrade, Terry's Tips, thinkorswim, Weekly Options
Posted in 10K Strategies, Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
February 26th, 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. At Terry’s Tips, we carry out actual portfolios for our subscribers to follow (either on their own or through Auto-Trade at their broker). One of these portfolios places our Idea of the Week that we publish here. So far in 2018, this portfolio has gained 69% and over half the portfolio value is now in cash since several of the put credit spreads that we sold earlier expired worthless over the past two weeks. I hope you enjoy these ideas that we pass along.
Terry
Weibo Corp (WB) Surges On a Stellar Earnings Report, Can it Continue the Momentum?
Several analysts have revised up their price targets after Weibo Corporation tripled Q4 earnings earlier this month. Here are two of them – Weibo Corp (WB) PT Raised to $150 at Barclays and Weibo Corp (WB) PT Raised to $154 at Nomura; Momentum Remains Strong.
Tags: Auto-Trade, Bullish Options strategies, Credit Spreads, Monthly Options, Portfolio, Profit, profits, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, WB, Weekly Options
Posted in 10K Strategies, Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
February 19th, 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 we conduct at Terry’s Tips using these trades has gained 36% over the first six weeks of 2018 in spite of losing money on one of the spreads. The average of all our portfolios has gained 23.2% while the market (SPY) is up only 2.2%.
Terry
Is Floor & Decor (FND) stock offering an entry point?
Several analysts expect further upside for FND stock, one analyst has recently revised up price targets to $50 and this article discusses recent favorable coverage in the media.
FND is seen bouncing from a notable confluence of support near the $43 price point. The area contains a horizontal level at $42.43 that was previously major resistance that is not seen as support. Also, the lower line of a rising trend channel is found near the horizontal level. The combination offers strong downside support and price action so far has shown buyers to protect the area.
Tags: Auto-Trade, autotrade, Bull Put Credit Spread, Bullish Options strategies, Calendar Spreads, Calls, Credit Spreads, diagonal spreads, FND, Monthly Options, portfolios, profits, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, Weekly Options
Posted in 10K Strategies, Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options |
Follow Terry's Tips on Twitter
Like Terry's Tips on Facebook
Watch Terry's Tips on YouTube