Subject: Is Floor & Decor (FND) stock offering an entry point?

 

Terrys Tips newsletter
     

Dear Friend,

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 we conduct at Terry’s Tips using these trades has gained 36% over the first six weeks of 2018 in spite of losing money on one of the spreads.  The average of all our portfolios has gained 23.2% while the market (SPY) is up only 2.2%.

Terry

 
Option Tip of the Week

Is Floor & Decor (FND) stock offering an entry point?

Several analysts expect further upside for FND stock, one analyst has recently revised up price targets to $50 and this article discusses recent favorable coverage in the media.

____________ advertisment ______________

Forget Social Security!

Thousands of U.S. taxpayers are lining up for the chance to grab huge four- and five-digit checks starting March 1. Massive payouts from a new private program that make the average Social Security check look like mincemeat. Click here for details (before March 1).

______________________________________

Technicals

FND is seen bouncing from a  notable confluence of support near the $43 price point.  The area contains a horizontal level at $42.43 that was previously major resistance that is not seen as support.  Also, the lower line of a rising trend channel is found near the horizontal level.  The combination offers strong downside support and price action so far has shown buyers to protect the area.

 FND Graph February 2018

*source Tradingview.com

If you agree there's further upside ahead for Floor & Decor, 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 FND 16Mar18 40 Puts (FND180316P40)

Sell To Open FND 16Mar18 45 Puts (FND180316P45) for a credit of $1.53 (selling a vertical)

This price was $0.02 less than the mid-point of the option spread when FND was trading near $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 $1.51 and your broker would charge a $500 maintenance fee, making your investment $349 ($500 – $151).  If FND closes at any price above $45.00 on March 16, both options would expire worthless, and your return on the spread would be 43% (632% annualized).

 ____________ advertisment ______________

Step 1: Buy these 5 ETFs Now...

TQQQ. FAS. UPRO, plus two additional ETFs revealed in this FREE REPORT. Step 2: Follow the simple strategy inside this free trading guide and step 3: Collect as much as $16,978.31 in a week. Full list of ETF's and strategy that has generated over $9.9 Million in cash payouts steadily now for 10 years. Revealed Here...

______________________________________ 

Changes to Investor’s Business Daily (IBD) Top 50 This Week:

IBD Underlying Updates February 15, 2018

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 ______________

Don't understand Bitcoin? This man will show you how to get started...

Former investment banker and crypto expert Tama Churchouse says there's one critical step every American should be taking right now. Full details 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?

I look forward to having you on board, and to prospering with you.

Terry
 

 


tastyworks    

 Open tastyworks account

 tastyworks, Inc. (“tastyworks”) has entered into a Market Agreement with Terry’s Tips (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website.tastyworks and Terry’s Tips are separate, unaffiliated companies and are not responsible for each other’s services and products.
 
Advertisement

Free 2018 Futures Outlook -- What's ahead for the futures markets?

RJO Futures is fired up to offer futures traders some of the best insight into the major commodity in grains, energies and metals covering where the markets have been and what might be ahead for 2018. This is a comprehensive outlook paper of in-depth analysis and graphs.

Download It Today!

 
Testimonial of the Week

Before rejoining Terry's Tips three months ago I struggled to keep my head above water, even attempting to use the 10K strategy. Now when I look at our portfolio I think of the line from "Butch Cassidy and the Sundance Kid", "who are these guys!". Your performance is nothing less than remarkable and indicates a deep commitment of time and energy to make this happen. Yours is a rare accomplishment for a newsletter to help the small investor, the "little guy", achieve success in the incredibly difficult world of investing. You should feel very proud. Thank you! ~ Neal

     

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

 
 
Week 473

February 19, 2018
 
tastyworks
tastyworks banner image
tastyworks is a new brokerage firm from the brains behind tastytrade and it is our top choice of options-friendly brokers. Their commission rates are extremely competitive - options trades are only $1 per contract to open and $0 commission to close (all options trades incur a clearing fee of $0.10 per contract). The tastyworks trading platform quickly became our favorite platform for options trading and it seems to be getting better every time we check on it. Terry uses tastyworks and loves everything about them!
Terry's Book

Hot off the press! Could be the best book on options you will ever read.

Order Dr. Allen's book "Making 36% - A Duffer's Guide to Breaking Par in the Market Every Year in Good Years and Bad" at the discounted price of $12.94 using the discount code TEE when ordering!

Think or Swim

This Chicago brokerage firm with the unlikely name thinkorswim, Inc. by TD Ameritrade is considered by many to be the best option-friendly broker. For openers, they have extremely good analytic software and their option trading platform is exceptional.  Thinkorswim Mobile has been called the best mobile app in the industry. In 2017, TD Ameritrade received 4 stars out of 5 in the annual Barron's* Best Online Brokers Survey. TD Ameritrade was tops as an online broker for long-term investors and for novices. The company is the only broker that receives the highest 5.0 score for research amenities among all firms participated in the ranking last year.

Visit thinkorswim

thinkorswim, Division of TD AMERITRADE, Inc. and Terry's Tips are separate, unaffiliated companies and are not responsible for each other's services and products.

©Copyright 2001-2018 Terry's Tips, Inc. dba Terry's Tips