Dear Friend,

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.

Read This Before You Invest in Marijuana Stocks!

The Marijuana industry is outpacing the dot-com era and is making millionaires almost daily. Now the space is flooded and finding the right stock means digging deeper into the trends. Read our special report on finding the companies that are poised for 100%, 200% or even 500% or more.

______________________________________

Technicals

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.

*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).

____________ advertisment ______________

Over 4,218 Payouts Unclaimed

In just the past 30 days, more than a dozen American companies issued huge 1-day cash payouts. A small group of informed investors cashed in on $10 billion of these payments. 

Do you want to be alerted to these upcoming income events? We'll show you how to grab your share of the next big payouts. 

Click here now to find out how.

______________________________________ 

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.  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

____________ advertisment ______________

This Stock Is Being Called The "Priceline of Pot"

Called a "game changer" for the Marijuana industry, this stock is growing rapidly to dominate one of the largest potential markets in the legal cannabis space. During the California gold rush the largest riches were had by the men selling the shovels. Read this special report to find out how investors can reap the largest profits from legal weed.

______________________________________ 

 
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
 

    

 Open tastyworks account

Only ONE losing month in the past SIX YEARS ... WHY?

Traders in our fund have only posted ONE losing month in the past six years ... and they do it without risking their own money.

We gladly give them the OUR MONEY to trade with because we share in the profits.

Using our risk management system our traders have posted a positive return every month for almost 6 years. Find out how in our next training class -- Sign Up Here.

"I have learned more than I ever expected from your tips and want to thank you for starting an educational journey I value more than my MBA."   ~ Mark

Thank you again for being a part of the Terry's Tips newsletter. If you are interested in signing up as an Insider, visit Terry's Tips today for details.

Sincerely,
Dr. Terry Allen
Terry's Tips