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.

Terry 

PANW rallied to fresh all-time highs after first-quarter earnings and revenue surpassed analyst expectations. In addition to the earnings report, Palo Alto Networks is acquiring a cybersecurity company that stands to boost its competitive edge. The following two articles provide more detail - BofA Turns Bullish On Palo Alto Networks After Q1 Beat and Palo Alto Networks: Why Expanse Is A Game Changer.

____________ advertisment ______________

PayPal Mafia Reveals $2.3 Million Secret

Fortune Magazine calls them the PayPal Mafia. This group of Silicon Valley insiders are behind the biggest tech stock success - including Tesla Motors. YouTube. LinkedIn. Facebook. SpaceX. Palantir. YouTube.

Today the PayPal Mafia is launching a brand-new company. And it's your chance to grab shares on day #1. Even a small $1k investment could multiply into $2.3 million!

Click here for your FREE Report.

______________________________________

Technicals

Monday’s earnings report offered the catalyst for a bullish break of a flag pattern that had been forming for several months. The technical break signals a bullish continuation of the trend that took place in the second and third quarter. PANW has shown a steady rise in upward momentum since the start of the month and investors may look to continue buying on shallow dips. 

*source Tradingview.com

If you agree there's further upside ahead for PANW, consider this trade which relies on the stock remaining above the $290 level through the expiration in six weeks.

Buy To Open PANW 31DEC20 285 Puts (PANW201231P285)

Sell To Open PANW 31DEC20 290 Puts (PANW201231P290) for a credit of $2.05 (selling a vertical)

This credit is $0.02 less than the mid-point of the option spread when PANW was trading near $292.  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 $203.70. This reduces your buying power by $500 and makes your investment $296.30 ($500 – $203.70).  If PANW closes at any price above $290 on December 31, both options will expire worthless, and your return on the spread would be 69% ($203.70 / $296.30), or 646% annualized.

 ____________ advertisment ______________

Buying Tesla Stock? Wait Until You See This...

With most investors focused on big tech, a frenzy is quietly erupting in one tiny sector, with gains like 500% in two months and 104% in a single day.

Click Here...

______________________________________ 

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 ______________

The one commodity Elon Musk Needs More and More.

Tesla craves lithium and Musk wants a private supply... he could look to a famous triangle to fulfill Tesla's insatiable demand.

Through all the noise, this lithium company is onto something good.

______________________________________ 

 
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 1 month of services without paying us one penny.

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

Terry
 

    
Become a Terry’s Tips Premium Insider, and receive all our educational reports and materials
 
ABSOLUTELY FREE
 
by opening a new account at the
best options broker around

thinkorswim. 

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. We will then sign you up for our Premium Service package sign you for our Premium Service package ($97 monthly subscription).  You get 1 month of services without paying us one penny.

 Open thinkorswim account

You Can Bank an Extra $2,541 This Month

A new special trading system reveals how to collect up to $2,541 THIS MONTH using this technique... Without owning a single share of stock! The facts don't lie. Had you known about this initiative, you could have already been paid a whopping $ 3,050 from Apple (APPL).

Click here for your FREE Report.

You’re a class act and it’s obvious to me why you have become so successful. Keep up the good work. I look forward to staying with you for a long time.

    ~ Tim

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