Lowe’s (LOW) Boosted by Rise in Home Improvement Spending
LOW has posted stellar gains in the year thus far. The following two articles discuss what drove the surge since late March as well as reasons why the momentum could continue - Lowe’s Stock Can Keep Rallying Because People Will Be Spending More Time at Home for Longer and 3 Reasons Why Lowe's (LOW) Is a Great Growth Stock.
____________ advertisment ______________
He broke the biggest rule in options investing... then retired with $5.3 million
He broke the biggest rule in options investing... and retired at 37 with more than $5.3m in the bank...
Now, for the first time - Jim Fink has agreed to reveal his personal Options trading "Blueprint." The unique twist in his strategy could hand you an extra $67,548.
Get the full details here
______________________________________
Technicals
From a technical standpoint, LOW has broken higher from an ascending triangle which is a bullish continuation pattern. Support for near-term dips falls at $170.50 which marks the top of the triangle. LOW is up 45% year to date and is one of only a few stocks on the IBD Top 50 list that has broken to a record high in October.
![LOW Chart October 2020 LOW Chart October 2020](http://www.terrystips.com/blog/wp-content/uploads/LOW-Chart-October-2020.png)
*source Tradingview.com
If you agree there's further upside ahead for LOW, consider this trade which relies on the stock remaining above the $172.50 level through the expiration in five weeks.
Buy To Open LOW 13NOV20 170 Puts (LOW201113P170)
Sell To Open LOW 13NOV20 172.5 Puts (LOW201113P172.5) for a credit of $1.13 (selling a vertical)
This credit is $0.02 less than the mid-point of the option spread when LOW was trading near $173. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will be only $1.30 per spread. Each spread would then yield $111.70. This reduces your buying power by $250 and makes your investment $138.30 ($250 – $111.70). If LOW closes at any price above $172.50 on November 13, both options will expire worthless, and your return on the spread would be 81% ($111.70 / $138.30), or 924% annualized.
____________ advertisment ______________
WARNING: New Rule to Impact 1,200 Banks in America
Please take one minute to review this URGENT letter from the Office of the Comptroller of the Currency (OCC).
The OCC is the agency that regulates about 1,200 banks in the U.S.
And it just issued a letter announcing a major change to our banking system that could impact 234 million Americans.
If you have any money in the bank, please click here right now and see how this could impact you.
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
![IBD Underlying Updates October 10, 2020 IBD Underlying Updates October 10, 2020](http://www.terrystips.com/blog/wp-content/uploads/IBD-Underlying-Updates-October-10-2020.jpg)
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 ______________
Do You Have an Account in Any of These Banks?
Bank of America... Wells Fargo... U.S. Bank... Citibank... Chase?
If you do, this new banking regulation that has been called "a game-changer" will affect you.
Millions of Americans will be caught by surprise because there’s not much time left to prepare.
You don't have to be one of them.
Click here now to see the details.
______________________________________
Any questions? Email Colin@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 Colin@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you up for our Premium Service package ($97 monthly subscription). You get 3 months ($291 worth) of services without paying us one penny. I look forward to having you on board, and to prospering with you.
Terry
|