|
Consider Cadence Design Systems (CDNS) Following the Technical Breakout
Several analysts expect more upside from CDNS, here are two of them – Disney and 4 Other Stock Picks from a Parnassus Fund Manager and Why Should You Retain Cadence Stock in Your Portfolio?
____________ advertisment ______________
Meet the three tiny cannabis companies that could set you up for life
Marijuana legalization is currently in full swing - and folks literally can't get enough. Demand is so insane, one Canadian retailer sold $50,000 worth of product in the first hour. We've never seen anything like this...and the profit potential at stake is great enough to hand you $2 million by this time next year.
Go here for details.
______________________________________
Technicals
CDNS is seeng breaking higher from a triangle pattern which signals a continuation of the broader uptrend, often with a pick up in upside momentum. In addition to the technical break, the stock is one of few on the IBD Top 50 List, and in the broader markets for that matter, that is on the verge of breaking to record highs.
*source Tradingview.com
If you agree there's further upside ahead for CDNS, 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 CDNS 15FEB19 43 Puts (CDNS190215P43)
Sell To Open CDNS 15FEB19 46 Puts (CDNS190215P46) for a credit of $0.65 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when CDNS was trading near $47. 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 $62.50 and your broker would charge a $300 maintenance fee, making your investment $237.50 ($300 – $62.50). If CDNS closes at any price above $46 on February 15, both options would expire worthless, and your return on the spread would be 26% (380% annualized). Note: Options on CDNS are fairly illiquid, with large bid-ask spreads. It would be especially important to place a limit order rather than a market order here.
____________ advertisment ______________
Turn $500 into $650,000 Without Risking a Single Dollar in the Market
Former Lehman Brothers executive reveals one of Wall Street's best kept secrets. A proven system for turning $500 into $650,000 (or more) - without touching the stock market.
In fact, this system is responsible for the most profitable investment of all time!
Click here for details>>
______________________________________
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
____________ advertisment ______________
Does This Market Volatility Worry You?
I’ve made a new realization about the markets that may not be popular…To be blunt, it’s time to leave the markets behind. So stop concerning yourself with the ups and downs…Markets can be climbing to record highs or plummeting to new lows and you’ll still have the chance to make money in either of these conditions, without worrying about how the markets are doing. You see, I’ve found a way to trade successfully that bypasses all the noise.
Now is the time to get off the ride.
______________________________________
Any questions? I would love to hear from you by email (terry@terrystips.com), or if you would like to talk to our guy Seth, give him a jingle at 800-803-4595 and either ask him your question(s) or give him your thoughts. seth@terrystips.com
You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
Even better, you can become a Terry’s Tips Insider, and receive all our educational reports and materials absolutely free by opening a new account at the best options broker around - thinkorswim. If you open an account with our link, they will give you 60 days of free trading or up to $600, the same deals they give to everyone who opens an account with them. You must use this link to sign up - open thinkorswim account – and once you have funded your account with at least $3500, email Seth@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you for our Premium Service package ($119.95 value plus an extra 4 months of our Premium Service, valued at another $190.80). You get $300.65 worth of services without paying us one penny.
I look forward to having you on board, and to prospering with you.
Terry
|
