Copart (CPRT) Eyes $100 Price Point
Copart is a momentum stock that has caught the eyes of many analysts, here are two of them - Why Copart (CPRT) Stock Might be a Great Pick and Why Do 123 A+ Funds Have A Stake In This Breakout IBD 50 Stock?
____________ advertisment ______________
Expert's #1 Play for 2020: Unprecedented Currency Shift, Next Bull Market
Billions of dollars are pouring into one long-ignored asset Goldman Sachs expects will soar in the first quarter of 2020. Go here to see hard-asset expert's #1 way to play this massive shift before it turns into a runaway train.
Click here to see why.
______________________________________
Technicals
The main appeal to CPRT from a technical perspective is its upward momentum on the larger time frames. Over the last year, the stock has only posted one monthly loss and that loss was a small one compared to typical monthly ranges. Pullbacks have been shallow and buyers are quick to pick this stock up on dips. A horizontal level is in play at $91 that acted as resistance from mid-November until the break higher two weeks ago. The upward break suggests bullish a continuation and the psychological $100 price point may act as a magnet for this stock.
*source Tradingview.com
If you agree there's further upside ahead for CPRT, 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 CPRT 21FEB20 90 Puts (CPRT200221P90)
Sell To Open CPRT 21FEB20 95 Puts (CPRT200221P95) for a credit of $1.63 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when CPRT was trading near $95. 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 $1.30 per spread. Each contract would then yield $161.70 and your broker would charge a $500 maintenance fee, making your investment $338.30 ($500 – $161.70). If CPRT closes at any price above $95 on February 21, both options would expire worthless, and your return on the spread would be 48% (449% annualized).
____________ advertisment ______________
Forget 5G - here's the next big thing
Investing in 5G is old news. I discovered a company with a revolutionary new technology that could be the next Cisco. I expect their $5 stock to climb to $90 and eventually as high as $1,200 per share. A $1,000 investment could grow to as much as $240,000.
See this new tech - and get my #1 way to profit.
______________________________________
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 ______________
He's Picked a New Takeover Every 70 Days!
Every deal this Wall Street legend picked was taken over just 88 days after he recommended it, on average. And they each delivered average profits of 86.6%. His latest takeover could happen even faster, after a Big Pharma giant took an 11% stake in this small biotech LAST MONTH.
Get Dylan's next takeover target right here >>>
______________________________________
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
|
