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 - CrowdStrike Holdings, Inc. (CRWD) – BUY
BUY CrowdStrike Holdings, Inc. (CRWD) February 2021 $210-$215 in-the-money vertical BULL call spread at $4.20
Opening Trade
2-10-2021
expiration date: February 19, 2021
Portfolio weighting: 10%
Number of Contracts = 23 contracts
We are re-establishing our short-term bullish position that software company CrowdStrike (CRWD) will stay above the strike price of $215 in the next 10 days.
We just took LARGE profits in the CRWD February 2021 $180-$185 call spread and we still have a put spread as well that we must navigate around. This position is also a good way to neutralize the put spread after already taking profits in our call spread.
Tech growth stocks can sometimes be explosive to the upside like we saw in Docusign (DOCU). The resilience of tech shares today is a sight to behold almost acting like a yo-yo with any sharp drop.
There is unusual activity in CRWD options today with traders piling into the February 2021 calls at strike prices $235 and $245, which are just too aggressive for this trade mentor service, but traders should take note of the idea if they are keen on the risk.
Any long-term investor should buy and hold this stock until $400.
CrowdStrike Holdings CRWD is the darling of the cybersecurity stocks. The 3% bump in shares today is a highly positive sign for this stock on a down day for the Nasdaq index.
CrowdStrike is enabling the trend toward cloud-based computing.
The cloud security leader in endpoint security, which provides protection at the device level, such as laptops, smartphones, servers, and sensors.
CrowdStrike uses artificial intelligence, machine learning, and behavioral analytics to power its threat detection system.
Each new business that joins the platform helps CrowdStrike's threat detection system become more intelligent, thereby strengthening the defense of everyone on the network.
They are no slouch with revenue expanding 86% year over year to $232.5 million in the third quarter, driven by strong customer gains.
Runway for growth is long. With the number of IoT devices set to explode to 75 billion by 2025, demand for CrowdStrike's endpoint security services should continue to grow unfettered which makes it such an attractive stock to appreciate.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
If you don’t do options, buy and hold the stock, my 3-year target is $400.
Here are the specific trades you need to execute this position:
Buy 23 February 2021 (CRWD) $210 calls at………….………$22.20
Sell short 23 February 2021 (CRWD) $215 calls at………….$18.00
Net Cost:………………….......................…..…….….……..…….....$4.20
Potential Profit: $5 - $4.20 = $.80
(23 X 100 X $.80) = $1,840 or 19.05% in 10 days
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
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.
