from the desk of Dr. Terry F Allen

Skip navigation

Member Login  |  Contact Us  |  Sign Up


Posts Tagged ‘tastytrades’

Arista Networks (ANET): Should You Buy the Dip?

Monday, 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.


Arista Networks (ANET): Should You Buy the Dip?

Upside price targets for Arista Networks have recently been raised by several analysts, here are two of them – Arista Networks PT Raised to $270.00 at BMO Capital Markets and Arista Networks PT Raised to $330 at Oppenheimer Following Management Meetings

ANET dipped lower in the past week inline with the broader market correction that took place.  The stock price ended the week at a horizontal level near $264 that has acted as both support and resistance in the year thus far.  Further support is seen slightly below horizontal support in the form of a rising trendline originating from a low posted in early November.  Most of the stocks listed in the IBD Top 50 list of companies have dipped lower as a result of last week’s market correction but ANET stands out as it has had a strong performance, relative to the list, since turning higher in early 2016.

ANET Chart March 2018

ANET Chart March 2018

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 over the next four weeks, or at least not decline very much.

Buy To Open ANET 20APR18 255 Puts (ANET180420P255)
Sell To Open ANET 20APR18 260 Puts (ANET 180420P260) for a credit of $1.98 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when NVDA was trading near $265.  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 $196 and your broker would charge a $500 maintenance fee, making your investment $304 ($500 – $196).  If ANET closes at any price above $260.00 on April 20, both options would expire worthless, and your return on the spread would be 64% (735% annualized).

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

IBD Underlying Updates March 22, 2018

IBD Underlying Updates March 22, 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’s Tips Introduces tastyworks!

Saturday, January 13th, 2018

Greetings, Terry’s Tips subscriber!

One of our best relationships over the course of 2017 has been with the guys that created thinkorswim. They have now moved on from that experience to introduce to us the newest kid on the brokerage block: tastyworks! If you ask us, we think their commission structure is absolutely the best one around, especially if you are a heavy options trader like we are. We love the things they are doing and don’t want you to miss out. Read on to see the message they sent to their tastyworks and tastytrade friends.

It’s time to join their nation!


“Hello, tastynation!

To start off 2018 just right, we want to thank you for your show of unconditional support and irreplaceable loyalty for tastytrade and tastyworks. You are the reason we’re driving change to the financial industry. We’ve not only planned more of what you love, like more live tastytrade shows in 25 cities, more trading tools, more mind-blowing content, more new daily shows – but also stuff that will leave you thinking, “How’d they do THAT?”

tastyworks introduced zero commissions to close trades on Jan 3rd, 2017. Starting tomorrow, on Jan 2nd, 2018, tastyworks is introducing capped commissions for large option trades. This means the most commission you will pay for any single leg option trade is $10* (plus clearing fees). That’s right, just $10* per leg!

Eighteen years ago, when we built thinkorswim, 100 option contracts to open and close was $300+. At the time, we thought $1.50 per contract was cheap. Today, the industry average per contract is about $.70 plus a small ticket charge. So, 100 option contracts today is approximately $150 to open and close at most firms. With tastyworks’ new rate schedule, the same trade will cost $10 in commissions to open, zero in commissions to close and a $20 clearing fee for a total of $30. Compare that rate to any other firm on the planet and remember how good our technology and content is as well. Fees for small options trades (10 contracts or less) stay the same.

But we’re not done. As an added bonus, tastyworks will have twelve monthly drawings for funded accounts (minimum of $2,000) and each month, one customer will win free commissions for 5 years. And no, we haven’t lost our minds. We simply want to do something special and this is just the start.

On the technology side, tastyworks is releasing a new analysis tab, portfolio margin, options on futures, paper trading, an open API, a new scripting language and lots of new mobile features.

So thank you again for the incredible engagement over the past year. You have helped to make tastytrade and tastyworks one of America’s fastest growing financial innovators.

Scott / Woody & the tastyworks team
Kristi / Tom & the tastytrade team

**The only exclusions are futures options and a few cash-settled indices. Clearing, regulatory and exchange fees still apply. See website for full details. Clearing fees are $.10 per contract. tastyworks does not have ticket charges, monthly minimums, platform fees, data fees, cancel fees, excess risk fees or fees for access to live trade desk support.”

tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer.

tastyworks, Inc. (“tastyworks”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastyworks is a wholly owned subsidiary of tastytrade, Inc. (“tastytrade”). tastyworks and tastytrade are separate but affiliated companies that are not responsible for each other’s products, services or policies. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Please read Characteristics and Risks of Standardized Options before investing in options. Options trading is subject to tastyworks account review and approval.

tastyworks, Inc. (“tastyworks”) has entered into a Market Agreement with [Insert Agent] (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent, its website or this email. tastyworks does not warrant the accuracy or content of the products or services offered by Marketing Agent, its website, or this email.

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