|
Consider NutriSystem (NTRI) After The Price Correction
Several research firms have recently upgraded their rating on NutriSystem, the following article provides some details – NutriSytem Inc Receives Consensus Rating of "buy" from Brokerages. As well, some big players upped their exposure to NutriSystem in the first quarter which is discussed in this article – Swiss National Bank Boosts Stake In NutriSystem Inc.
____________ advertisment ______________
Marijuana Millionaires: 5 Pot Stocks to Buy Now
At this very moment, a small handful of little-known companies are quietly creating armies of new millionaires. They are doing it by capitalizing on the legal pot movement that is sweeping the country.
And this is your chance to build massive wealth in a very short period of time if you act quickly before they go mainstream. As I'm about to show you, each one of these stocks has the power to transform a tiny grubstake investment into thousands, maybe even hundreds of thousands of dollars for you. Details here.
______________________________________
Technicals
From a technical perspective, NTRI broke higher from a bullish flag pattern in late June to signal that a seven-week correction from a high posted in April may have completed.
The stock has been trending higher since 2013 and an acceleration of upside momentum is seen from early 2016. NutriSystem broke above the 100-day moving average in the second quarter of 2016 and aside from a very brief dip below the indicator in January and June this year, the stock has held above it.
*source Tradingview.com
If you agree there's further upside ahead for NutriSystem, 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 NTRI 18Aug17 45 Puts (NTRI170818P40)
Sell To Open NTRI 18Aug17 50 Puts (NTRI170818P45) for a credit of $1.48 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when NTRI was trading near $52. 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 $146 and your broker would charge a $500 maintenance fee, making your investment $354 ($500 – $146). If NTRI closes at any price above $50 on August 18, 2017, both options would expire worthless, and your return on the spread would be 41% (355% annualized).
____________ advertisment ______________
Options Trading Made Even Easier
Learn how to trade options simply, effectively and more importantly, profitably. You need to stop wasting time using bad methods and follow a proven winner. No matter your account size or skill level, this guide will have you feeling like a pro. Download your free copy of The Ultimate Guide To Trading Options and get my personal Trading Cheatsheet.
This link expires soon and you can only get this guide here.
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
IBD Underlying Updates July 7, 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
____________ advertisment ______________
You Know What You Want.
To keep more of your own money. Make better than average returns... and fewer mistakes. VectorVest makes it easy to make better decisions. To stay in control as the markets move up and down, with at-a-glance guidance on what and when to buy, sell and hold.
Analyze any stock free. Get your free report.
______________________________________
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?
I look forward to having you on board, and to prospering with you.
Terry
|
