from the desk of Dr. Terry F Allen

Skip navigation

Member Login  |  Contact Us  |  Sign Up

1-800-803-4595

Posts Tagged ‘Profit’

Adobe Systems (ADBE): Q4 Earnings Beat to Fuel Further Momentum

Monday, January 8th, 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 portfolios to spot outperforming stocks and place spreads that take advantage of the momentum. Speaking of our portfolios, I would like to share with you the exact report for 2017 that we sent to Terry’s Tips’ paying subscribers this week – “All of the portfolios except Boomers’ Revenge and Vista Valley have been reset for 2018. Boomers’ Revenge will start over with $5000 after the 1/19/18 spreads expire with an almost-certain gain of 56% for the “year” starting and ending on the third Friday of January.  The others:

  • Capstone Cascade – (restarted with $10,000 on 1/2/18) – 48% gain for 2017
  • Contango (our only portfolio not available for Auto-Trade – restarted with $5000 on 1/2/18) – 138% gain for 2017
  • Earnings Eagle (started with $5000 on 6/7/17) – 31% gain over last 6 months of 2017
  • Galloping Turtle (restarted with new strategy on 11/20/17 after withdrawal of $3960) –  79% gain for 2017
  • Honey Badger (restarted with $5000 using a new strategy on 12/26/17) – 48% loss for 2017, our only losing portfolio (fully recovered loss in the first week of 2018)
  • Leaping Leopard (restarted on 12/26/17 with $5000 after withdrawal of $2001) – 40% gain for 2017
  • Rising Tide (restarted on 1/2/18 with $5000 after withdrawal of $7615) – 152% gain for 2017
  • Vista Valley (restarted on 1/19/18 with $5000 after withdrawal of $5058) – 101% gain for 2017
  • Wiley Wolf (restarted on 11/8/17 with $5000 after $19,840 withdrawal) – 728% gain for 2017 as FB soared 56%.”

Terry

Adobe Systems (ADBE): Q4 Earnings Beat to Fuel Further Momentum

Two recent analyst upgrades suggest there is potential for a 10% upside in Adobe Systems stock price as BMO Capital Markets have recently raised their price targets to $205 and BofA have set a target of $220.

The technical outlook for ADBE is encouraging.  The stock posted a steady rally throughout 2017 for an annual gain of roughly 70%.  ADBE corrected lower in late November but bounced back after a test of horizontal support at 165.50 from a prior gap.  It has since recovered back above the 50-period daily moving average and is on the verge of breaking to new highs, suggesting the uptrend has resumed.

ADBE Chart January 2018

ADBE Chart January 2018

*source Tradingview.com

If you agree there’s further upside ahead for Adobe Systems, 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 ADBE 16Feb18 180 Puts (ADBE180216P180)
Sell To Open ADBE 16Feb18 185 Puts (ADBE180216P185) for a credit of $1.85 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when ADBE was trading near $185.  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 $183 and your broker would charge a $500 maintenance fee, making your investment $317 ($500 – $183).  If ADBE closes at any price above $185 on February 18, both options would expire worthless, and your return on the spread would be 58% (540% annualized).

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

IBD Underlying Updates January 4, 2018

IBD Underlying Updates January 4, 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

Fleetcor Technologies (FLT) Likely to Cross $200 Mark

Tuesday, January 2nd, 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 portfolios to spot outperforming stocks and place spreads that take advantage of the momentum.  The 2017 trading year is over.  The 10 option portfolios carried out at Terry’s Tips gained an average of 113% for the year.  Only one portfolio lost money, and four of them earned over 100%.  It was the best year in our 16-year history.  We look forward to a similar outcome in 2018.  We invite you to come along for the ride.

Terry

Fleetcor Technologies (FLT) Likely to Cross $200 Mark

Two recent analyst upgrades suggest Fleetcor Technologies stock will cross the $200 point as Deutsche Bank has raised their price targets to $225 and Jefferies has raised their target to $218.

FLT posted a sixth consecutive week of gains in the past week and closed at an all-time record high.  In fact, the stock has only had three down weeks in the last 19 and each one of those declines was not very significant.  A rising trendline is in play that originates from a low posted in September and offers support near the $190 price point where the 20-period daily moving average is also found to add confluence.

FLT Chart January 2018

FLT Chart January 2018

*source Tradingview.com

If you agree there’s further upside ahead for Fleetcor Technologies, 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 FLT 16Feb18 185 Puts (FLT180216P185)
Sell To Open FLT 16Feb18 190 Puts (FLT180216P190) for a credit of $1.78 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when FLT was trading near $192.  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 $176 and your broker would charge a $500 maintenance fee, making your investment $324 ($500 – $176).  If FLT closes at any price above $190 on February 16, 2018, both options would expire worthless, and your return on the spread would be 54% (431% annualized).

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

IBD Underlying Updates December 28, 2017

IBD Underlying Updates December 28, 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

Red Hat (RHT) Dips Following Earnings, Is it A Buy?

Tuesday, December 26th, 2017

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.

We wish you the best of the holiday season…

Terry

Red Hat (RHT) Dips Following Earnings, Is it A Buy?

Red Hat stock pulled back in the past week after crushing third-quarter earnings targets.  Several analysts revised up their price targets both ahead and after the earnings report.  Here are two of them – Red Hat (RHT) PT Raised to $145 at Barclays, Sees a Strong Q3 Report Ahead and Red Hat (RHT) PT Raised to $150 at Deuthsche Bank on 3Q Beat & Raised FY Guidance.

RHT has seen a strong rally throughout the year and last week’s pullback has not altered the positive technical outlook.  A rising trendline dating back to a low posted in August remains intact and held the stock higher in the past week.  Horizontal support at the psychological $120.00 handle was found near the trendline line to add confluence.  In the absence of a bearish catalyst, the technicals suggests the stock can continue its uptrend from here.

RHT Chart December 2017

RHT Chart December 2017

*source Tradingview.com

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

Buy To Open RHT 19 Jan 18 $122 Puts (RHT180119P122)
Sell To Open RHT 19 Jan 18 $123 Puts (RHT180119P123) for a credit of $0.50 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when RHT was trading near $123.  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 $48 and your broker would charge a $100 maintenance fee, making your investment $52 ($100 – $48).  If RHT closes at any price above $123 on January 19, 2018, both options would expire worthless, and your return on the spread would be 92% (1053% annualized).

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

IBD Underlying Updates December 21, 2017

IBD Underlying Updates December 21, 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

Consider Paypal (PYPL) Following the Price Correction

Monday, December 18th, 2017

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 bit to realize the full profit.  We use these ideas in one of the ten portfolios that we carry out for paying Terry’s Tips subscribers.  These ten actual portfolios have enjoyed an average gain of 118% (after paying commissions) so far in 2017.  It has been a very good year.

Terry

Consider Paypal (PYPL) Following the Price Correction

Paypal stock prices have risen steadily throughout the year and there have been several price target upgrades recently.  BMO Capital Markets has raised their price target to $85.00 and Nomura has increased their target to $82.00.   Paypal closed last week at $75.65, suggesting a potential upside of at least 8%.

PYPL has a more consistent and stable trend compared to other stocks on the IBD 50 list.  There was a recent price correction and buyers were seen lifting stock prices higher following a brief dip below the 50-period daily moving average and a rising trendline that dates back to June.  The rally from the support confluence has resulted in a bullish engulfing candle on a weekly chart.

PYPL Chart December 2017

PYPL Chart December 2017

*source Tradingview.com

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

Buy To Open PYPL 19 Jan18 72.50 Puts (PYPL180119P72.5)
Sell To Open PYPL 19 Jan18 75.00 Puts (PYPL180119P75) for a credit of $0.92 (selling a vertical)This price was $0.02 less than the mid-point of the option spread when PYPL was trading at $75.65.  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 $90 and your broker would charge a $250 maintenance fee, making your investment $160 ($250 – $90).  If PYPL closes at any price above $75 on January 19, 2018, both options would expire worthless, and your return on the spread would be 56% (642% annualized).

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

IBD Underlying Updates December 14, 2017

IBD Underlying Updates December 14, 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

Will Essent Group (ESNT) Continue the Momentum?

Tuesday, December 5th, 2017

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.

Terry

Will Essent Group (ESNT) Continue the Momentum?

Essent Group has received a lot of attention as of late and several analysts are expecting more upside in the stock price.  Here are two of them – Essent Group Earns Outperform Rating from Analysts at Wells Fargo & Company and Zacks: Analysts Anticipate Essent Group Ltd. Will Announce Earnings of $0.77 Per Share.

ESNT has recently seen a pickup of upside momentum after a consolidating mostly sideways from early in the year.  The stock broke to fresh record highs late last month and a correction in the second half of last week ended with a bullish engulfing candle on a daily chart, suggestion a continuation of the predominant bullish trend.

ESNT Chart December 2017

ESNT Chart December 2017

*source Tradingview.com

If you agree there’s further upside ahead for Essent Group, 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 ESNT 19Jan18 40 Puts (ESNT180119P040)
Sell To Open ESNT 19Jan18 45 Puts (ESNT180119P045) for a credit of $1.38 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when EA was trading near $45.  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 $136 and your broker would charge a $500 maintenance fee, making your investment $364 ($500 – $136).  If ESNT closes at any price above $45 on January 18, 2018, both options would expire worthless, and your return on the spread would be 37% (296% annualized).

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

IBD Underlying Updates December 1, 2017

IBD Underlying Updates December 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

Facebook (FB): Time to Buy The Dip?

Monday, November 20th, 2017

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.

FB Chart November 2017

FB Chart November 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 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:

IBD Underlying Updates November 16, 2017

IBD Underlying Updates November 16, 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

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

Tuesday, November 14th, 2017

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:

Trading Idea of the week Summary Chart November 2017

Trading Idea of the week Summary Chart November 2017

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.

COHR Chart November 2017

COHR Chart November 2017

*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

Black Friday Special Offer Lowest Price Ever

Wednesday, November 8th, 2017

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
    • my 60+ page 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 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

It is hard to place a value on these special reports – if they helped you improve your investment results for the rest of your life, how much might they be worth to you?  Not exactly priceless, but maybe getting close to it.

For this lowest-price-ever $37.95 offer, click here, enter Special Code BF117 (or BF117P for Premium Service – $77.95).

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.

I look forward to helping you get the next investment cycle (ride the holiday retail economy cash injection) 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 $37.95 for our entire package.  Get it here using Special Code BF117 (or BF117P for Premium Service – $79.95).   Do it today, before you forget and lose out.  This offer expires on Monday, November 27, 2016.

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

Centene Corp (CNC) Poised To Break $100

Monday, October 30th, 2017

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 upward momentum and place spreads that stand to profit if the momentum continues, at least a little.

Just an update – the composite average gain for our 10 Terry’s Tips actual options portfolios has now reached 102% for 2017 (after paying all commissions, of course), and we expect some fireworks this week in our two portfolios which trade FB and MA options as both companies announce earnings after the close on Wednesday.

Terry

Centene Corp (CNC) Poised To Break $100

Several analysts are confident Centene Corp stock will continue its bullish run and break above the psychological $100.00 handle.  Here are two of them – Oppenheimer Holdings, Inc. Reaffirms “Buy” Rating for Centene Corporation (CNC) and Centene Corporation’s (CNC) Buy Rating Reiterated at Cowen and Company.

From a technical perspective, a rising trendline is in play that dates back to a low posted in late 2016.  Buyer’s protected the trendline earlier this month on a momentum driven decline which reaffirms that it is widely watched and respected.

CNC Chart October 2017

CNC Chart October 2017

*source Tradingview.com

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

Buy To Open CNC 5Dec17 92.50 Puts (CNC171215P92500)
Sell To Open CNC 5Dec17 95.00 Puts (CNC171215P95000) for a credit of $1.18 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when CNC was trading near $94.50.  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 $116 and your broker would charge a $250 maintenance fee, making your investment $134 ($250 – $116).  If CNC closes at any price above $95 on December 15, 2017, both options would expire worthless, and your return on the spread would be 87% (1264% annualized).

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

IBD Underlying Updates October 26, 2017

IBD Underlying Updates October 26, 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

Is SVB Financial Group (SIVB) Ready To Continue Higher After The Price Correction?

Monday, October 23rd, 2017

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 outperforming stocks and place spreads that take advantage of the underlying trend and momentum.

I did want you to know that the 10 actual option portfolios carried out at Terry’s Tips  for paying subscribers reached an important milestone this week.  These portfolios use a variety of pre-determined options strategies and differing underlying stocks or ETPs.  If you had invested in all 10 portfolios in January 2017, you would have invested $48,600.  This week, the composite value of those portfolios reached $97,742, a gain of 101%.  For the first time, we are up 100% for the year.  A milestone to celebrate!  Isn’t it time that you learned how we did it so that you could enjoy these kinds of returns in your own investment account?

Terry

Is SVB Financial Group (SIVB) Ready To Continue Higher After The Price Correction?

SIVB recently broke higher from a correction that had taken place since March.  The stock price started trending higher in late September and made a series of technical breaks by regaining its 200-period daily moving average and breaking above a declining trend channel that had encompassed the roughly six-month correction.

SIVB corrected lower last week following the technical break but turned higher after retesting the broken trend channel, slightly ahead of the 200-period daily moving average.  The stock price ended the week near 189.50 after a gap higher inspired by the earnings report, taking out resistance at 186.09 which was a hurdle in May and August.  The trend channel which is found on a daily chart resembles a flag pattern and the recent upside break signals a bullish continuation.

SIVB Chart October 2017

SIVB Chart October 2017

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

Buy To Open SIVB 17Nov17 185 Puts (SIVB171117P185)
Sell To Open SIVB 17Nov17 190 Puts (SIVB171117P190) for a credit of $2.08 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when SIVB was trading near $189.50.  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 $206 and your broker would charge a $500 maintenance fee, making your investment $294 ($500 – $206).  If SIVB closes at any price above $190 on November 17, 2017, both options would expire worthless, and your return on the spread would be 70% (1023% annualized).

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

IBD Underlying Updates October 19, 2017

IBD Underlying Updates October 19, 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