Posts Tagged ‘Volatility’
Sunday, January 6th, 2019
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
Will Five9 Inc (FIVN) Break Higher From It’s Range?
Take a look at what these analysts have to say about Five9 – IBD 50 Stocks To Watch: How Cloud, AI Shape Five9’s Software Future and Lookout for these Two stocks: American International Group, Five9 Inc.
Five9 has consolidated higher since hitting a low in late October and is seen trading within a range. The stock is an outperformer as most stocks posted losses in the last two months of the year. A technical pattern is emerging as a triangle can be drawn around the recent consolidation. To the upside, a break above $44.40 would suggest a bullish breakout. There is a confluence of downside support deriving from a rising trendline, the 50-day moving average, as well as a horizontal level. The horizontal level, which resides at $39.55, is considered well respected as it has acted both resistance and support on several occasions since the initial test in June.
*source Tradingview.com
If you agree there’s further upside ahead for FIVN, consider this trade which is a bet that the stock will continue to advance over the next six weeks, or at least not decline very much.
Buy To Open FIVN 15FEB19 35 Puts (FIVN190215P35)
Sell To Open FIVN 15FEB19 40 Puts (FIVN190215P40) for a credit of $1.18 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when FIVN was trading near $43. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will only be $2.50 per spread (the rate charged by thinkorswim for Terry’s Tips’ subscribers). Each contract would then yield $115.50 and your broker would charge a $500 maintenance fee, making your investment $384.50 ($500 – $115.50). If FIVN closes at any price above $40 on February 15, both options would expire worthless, and your return on the spread would be 30% (281% annualized).
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
IBD Underlying Updates January 3, 2019
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
Tags: Auto-Trade, Bull Put Credit Spread, Bullish Options strategies, Calendar Spreads, Calls, Credit Spreads, FIVN, Monthly Options, Options Tutorial Program, Portfolio, Profit, profits, Puts, Risk, Stocks vs. Stock Options, Straddles, Terry's Tips, thinkorswim, Volatility, Weekly Options
Posted in 10K Strategies, Credit Spreads, Earnings Announcement Options Strategy, Lazy Way Strategy, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
Monday, 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.
As the above technical article has mentioned, the 20-period moving average on a weekly chart held Paypal stock higher following the earnings-inspired correction in early February. PYPL has since climbed back above the same moving average on a daily chart, which has held declines in the month thus far. The stock has also breached above the psychological $80 price point which had held prices lower in late February.
*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 over the next six weeks, or at least not decline very much.
Buy To Open PYPL 20APR18 77.5 Puts (PYPL180420P77.5)
Sell To Open PYPL 20APR18 80 Puts (PYPL180420P80) for a credit of $0.83 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when PYPL was trading near $81. 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 $81 and your broker would charge a $250 maintenance fee, making your investment $169 ($250 – $81). If PYPL closes at any price above $80.00 on April 20, both options would expire worthless, and your return on the spread would be 48% (449% 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
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 | No Comments »
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
*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
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
Tags: Auto-Trade, bull put spread, Bullish Options strategies, Calls, Credit Spreads, Monthly Options, Portfolio, Profit, profits, Puts, PYP, Risk, TastyWorks, Terry's Tips, thinkorswim, Vertical Put Spread, Volatility, Weekly Options
Posted in Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
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)
Tags: 10K Strategy, Auto-Trade, Black Friday Special Offer, Bullish Options strategies, Calendar Spreads, Calls, Credit Spreads, diagonal spreads, ETF, ETP, FB, implied volatility, intrinsic value, LEAPS, Monthly Options, Options Tutorial Program, Portfolio, Profit, profits, Puts, Risk, Special Code, SPY, Stocks vs. Stock Options, TastyWorks, Terry's Tips, thinkorswim, VIX, Volatility, Weekly Options
Posted in Monthly Options, SPY, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
Wednesday, September 6th, 2017
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.
Tags: Back To School Special Offer, Calendar Spreads, Calls, Credit Spreads, diagonal spreads, ETF, ETP, implied volatility, intrinsic value, LEAPS, Monthly Options, Options Tutorial Program, Portfolio, Profit, Puts, Risk, Stocks vs. Stock Options, TastyWorks, Terry's Tips, thinkorswim, Volatility, Weekly Options
Posted in Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
Monday, September 4th, 2017
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
*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
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
Tags: Bullish Options strategies, Calls, Credit Spreads, Monthly Options, Portfolio, Profit, profits, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, Volatility, Weekly Options
Posted in Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
Monday, August 28th, 2017
This week we are featuring a company listed on the Investor’s Business Daily (IBD) Top 50 List. We use this list in one of our portfolios to target outperforming stocks and look to place options spreads that take advantage of the underlying trend..
You might be interested to know that Terry’s Tips carries out 10 actual options portfolios for paying subscribers to follow if they wish. This week was a typical one for us. The market (SPY) rose 0.8% while our composite portfolio average gained 2.8%. So far for the year, our composite average has gained 54% (after commissions).
Terry
Is Applied Materials (AMAT) Ready to Accelerate Higher?
Several analysts have recently refreshed their bullish outlook towards Applied Materials and have raised price targets. These articles provide more details Applied Materials Gets Several Price-Target Hikes on Earnings and Applied Materials Targets Surge On Upbeat Memory Chip, Display Markets.
From a technical perspective, AMAT has been consolidating within a range since around May with buyer’s holding the stock well above the $40.00 price point. Buyer’s lifted the price higher about two weeks ago on an approach to the lower bound of the range. While a horizontal level at $43.06 initially acted as resistance in the turn, the level held several declines in the past week. AMAT shows a strong bullish trend on a weekly chart dating back to early 2016, and like several of the IBD Top 50 stocks, has been an outperformer within its sector.
AMAT Chart August 2017
*source Tradingview.com
If you agree there’s further upside ahead for Applied Materials, 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 AMAT 29Sep17 42.5 Puts (AMAT170929P425)
Sell To Open AMAT 29Sep17 43 Puts (AMAT1700929P430) for a credit of $0.17 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when AMAT was trading near $43. 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 $15 and your broker would charge a $50 maintenance fee, making your investment $35 ($50 – $15). If AMAT closes at any price above $43 on September 29, 2017, both options would expire worthless, and your return on the spread would be 43% (446% annualized).
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
IBD Underlying Updates August 25, 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
Tags: AMAT, Auto-Trade, Bullish Options strategies, Credit Spreads, Monthly Options, Portfolio, Profit, profits, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, Volatility, Weekly Options
Posted in Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
Monday, July 31st, 2017
This week we are discussing another one of the Investor’s Business Daily (IBD) Top 50 List companies. We use this list in one of our portfolio’s to find stocks that have displayed consistent upwards momentum and we look to place spreads that take advantage of this underlying strength.
Terry
Transunion (TRU): A Stable and Consistent Player
Several analysts have recently refreshed their bullish outlook towards Transunion. UBS Asset Management has increased their stake in the company and both Morgan Stanley as well as Deutsche Bank have raised their price targets to $50.
Transunion has been trading higher within a rising trend channel since the middle of February. After testing the lower line of the trend channel in the past week, the stock recovered to hit a fresh 52-week high. The $44.45 level held the stock price lower for a month prior to finally breaking above it earlier this month. The level is now viewed as support and its proximity to the 20-day moving average as well as the channel bottom emphasizes the area as strong support.
TRU Chart July 2017
*source Tradingview.com
If you concur that there’s further upside ahead for Transunion, consider this trade which is a bet that the stock will continue to advance, at least a little.
Buy To Open TRU 15SEP17 45 Puts (TRU170915P45)
Sell To Open TRU 15SEP17 46 Puts (TRU170915P46) for a credit of $0.46 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when TRU was trading just above $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 $44 and your broker would charge a $100 maintenance fee, making your investment $56 ($100 – $44). If TRU closes at any price above $46 on September 15, 2017, both options would expire worthless, and your return on the spread would be 78% (624% annualized).
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
IBD Underlying Updates July 31, 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. The Terry’s Tips portfolio which places spreads like the above one has gained 114.7% so far in 2017 in spite of incurring some losses on some of the spreads placed. 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
Tags: Bullish Options strategies, Calls, Credit Spreads, Monthly Options, Portfolio, Profit, profits, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, Transunion, TRU, Volatility, Weekly Options
Posted in Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
Monday, July 24th, 2017
This week we are featuring a company listed on the Investor’s Business Daily (IBD) Top 50 List that broke to an all-time high in the past week. In one of our portfolio’s, we use the IBD Top 50 List to find stocks that show strong upward momentum and place spreads which will profit if the upward momentum continues. Actually, the stock can even fall a little for the maximum gain to be realized on these spreads.
Terry
Macom Tech Solutions (MTSI) Surges to All-Time High, What’s Next?
Macom Technology Solutions had its price target recently raised by Needham & Company and several firms have added to already sizeable positions. Here are two of them- First Trust Advisors LP Increases Stake in Macom Technology Solutions Holdings and FMR LLC Boosts Position in Macom Technology Solutions Holdings.
MTSI has been in an uptrend since late 2012 and broke to an all-time high in the past week. The technical break followed an 8-week consolidation below a horizontal resistance level at $61.25 which is now viewed as strong support. MTSI surged above the level on Thursday and held near its highs into the weekly close to offer confirmation of a sustained bullish break.
MTSI Chart July 2017
*source Tradingview.com
If you concur that there’s further upside ahead for Macom Technology Solutions, 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 MTSI 18Aug17 55 Puts (MTSI170818P55)
Sell To Open MTSI 18Aug17 60 Puts (MTSI170818P60) for a credit of $1.18 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when MTSI was trading near $63. 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 $500 maintenance fee, making your investment $384 ($500 – $116). If MTSI closes at any price above $60 on August 18, 2017, both options would expire worthless, and your return on the spread would be 30% (395% annualized).
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
IBD Underlying Updates July 21, 2017
IBD Underlying Updates July 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. The Terry’s Tips portfolio which places spreads like the above one has gained 113.5% so far in 2017 in spite of incurring some losses on some of the spreads placed. 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
Tags: Bullish Options strategies, Calls, Credit Spreads, IBD, implied volatility, Monthly Options, MTSI, Portfolio, Profit, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, Volatility, Weekly Options
Posted in Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
Tuesday, July 18th, 2017
This week we are featuring a company that was just added to the Investor’s Business Daily (IBD) Top 50 List. I hope that it is of interest to you. The Terry’s Tips’ portfolio that places trades on our selections from the IBD Top 50 List has gained 117.7% so far in 2017. Terry’s Tips subscribers who have trades placed in their accounts through Auto-Trade or who follow the portfolio on their own are happy campers right now.
Terry
Is Taiwan Semiconductor (TSM) Ready To Resume Higher?
Taiwan Semiconductor has been gaining popularity among investors as the company supplies key components used in the Iphone. Apple’s smartphone saw sales exceeding 50 million units last quarter. These analysts weigh in on why there may be further upside ahead for Taiwan Semiconductor’s stock price – 3 Things This Apple Inc. Supplier Wants You to Know and How To Become A Billionaire In One Step: Sell Components To Apple.
The technical indicators point to a healthy uptrend in TSM. The stock price recently bounced higher from support at $34.42 and has regained the 20-day moving average. The stock has held above the same moving average on a weekly chart for most of this year. A rising trend channel has been in play since May last year and the lower line of the channel offers additional support near recent lows.
TSM Chart July 2017
*source Tradingview.com
If you concur Taiwan Semiconductor is ready to resume higher, 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 TSM 18Aug17 34 Puts (TSM170818P34)
Sell To Open TSM 18Aug17 35 Puts (TSM170818P35) for a credit of $0.21 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when TSM was trading near $36. 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 $19 and your broker would charge a $100 maintenance fee, making your investment $81 ($100 – $19). If TSM closes at any price above $35 on August 18, 2017, both options would expire worthless, and your return on the spread would be 23% (299% annualized).
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
IBD Underlying Updates July 14, 2017
IBD Underlying Updates July 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. The Terry’s Tips portfolio which places spreads like the above one has gained 80% in the first six months of 2017 in spite of incurring some losses on some of the spreads placed. 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
Tags: Bullish Options strategies, Calls, Credit Spreads, Monthly Options, Portfolio, Profit, profits, Puts, Risk, TastyWorks, Terry's Tips, thinkorswim, TSM, Volatility, Weekly Options
Posted in Credit Spreads, Monthly Options, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options | No Comments »
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