Tech Alert – (PANW) December 14, 2023 – TAKE PROFITS – SELL

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Tech Alert – Palo Alto Networks, Inc. (PANW) – TAKE PROFITS

SELL Palo Alto Networks, Inc. (PANW) December 2023 $210-$220 in-the-money vertical BULL CALL spread at $9.98

Closing Trade

12-14-2023

expiration date: December 15, 2023

Portfolio weighting: 10%

Number of Contracts = 11 contracts

I executed a bull call spread when PANW sold off.

PANW beat on the top line but forecasts came in less than expected triggering a 6% selloff.

Second quarter billings guidance of $2.34 billion-$2.39 billion fell short of the $2.43 billion estimate.

This was a short-term tactical bet on PANW and this best of breed in the cyber security stock proved me right.

The stock is over $80 in the money and expires tomorrow. You could just let it expire and have the money show up in your trading account on Monday as well.

Good job and on to the next trade.

Here are the specific trades you need to exit this position:

Sell to Close 11 December 2023 (PANW) $210 calls at………………$94.00

Buy to Close 11 December 2023 (PANW) $220 calls at……….…….$84.02

Net Proceeds:………………………………….…..…….………………………..$9.98

Profit: $9.98 – $9 = $.98

(11 X 100 X $.98) = $1,078 or 10.89%

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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