ServiceNow (NOW) Eyes All-Time Highs
ServiceNow is up 35% from its low two months ago and several analysts expect the stock to continue higher. Here are two of them - Is ServiceNow (NOW) Outperforming Other Computer and Technology Stocks This Year? and 3 Tech Stocks for Growth Investors to Buy for 2020.
____________ advertisment ______________
Analyst Reveals the Only 8 Stocks You Need to Own in 2020
Now you can turn the tables on Wall Street's sharks, scam artists, and snake-oil salesmen with the ONLY 8 STOCKS you really need to buy! In good times and bad. Bull markets and bear. They just keep posting more income and growth.
Click here for the full list of the only 8 stocks you need for 2020.
______________________________________
Technicals
From a technical perspective, NOW recently scaled above a major horizontal level that resides near $275. This level first came into play in late April and has acted as resistance on multiple occasions. The bullish break signals strength. The next area of interest will tend to be the psychological $300 price point which held the stock lower earlier this year.
*source Tradingview.com
If you agree there's further upside ahead for NOW, 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 NOW 24JAN20 282.5 Puts (NOW200124P282.5)
Sell To Open NOW 24JAN20 285 Puts (NOW200124P285) for a credit of $1.03 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when NOW was trading near $287. 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 $101.70 and your broker would charge a $250 maintenance fee, making your investment $148.30 ($250 – $101.70). If NOW closes at any price above $285 on January 24, both options would expire worthless, and your return on the spread would be 69% (1007% annualized).
____________ advertisment ______________
A stock that yields 67% a year? Really?
If you're happy with stocks yielding you 4% or 5% a year, you don't need this. But if you want to see how we built a portfolio that now pays us a 67% cash on cash return - with no leverage, options, or gimmicks.
Then go here ASAP.
______________________________________
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
|
