Trade Alert - (CRWD) January 30, 2024 - BUY
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 2024 $272.50-$282.50 in-the-money vertical BULL CALL spread at $8.00
Opening Trade
1-30-2024
expiration date: February 16, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
This is a short-term trade in cybersecurity stock CRWD.
It’s a bet that the underlying stock CRWD won’t fall more than 5.2% by February 16th expiration from the current share price.
I believe CRWD should be the bedrock of any software portfolio and after a little weakness in tech, this tactical trade is favorable.
As the world shifts to the cloud, effective cybersecurity solutions are quickly becoming indispensable for companies large and small. CRWD is a trusted ally for businesses seeking to prevent malicious actors from penetrating their cloud networks.
CrowdStrike excels at protecting endpoints such as mobile devices, point-of-sale systems, and Internet of Things (IoT) sensors. A boom in remote work during the pandemic has highlighted the importance of endpoint security, and CrowdStrike is a recognized leader in this increasingly vital area.
Advanced artificial intelligence (AI) helps to separate CrowdStrike's platform from the competition. By analyzing more than 2 trillion cyber events each day, the cyber guardian's machine learning technology continuously gets smarter. When CrowdStrike finds a new threat, it updates its network in real time to shield its customers.
Demand for these cybersecurity services is surging. CrowdStrike's revenue climbed 35% year over year to $786 million in the quarter ended Oct. 31.
Don’t pay more than $8.20.
Here are the specific trades you need to execute this position:
Buy to Open 12 February 2024 (CRWd) $272.50 calls at………..…$29.20
Sell to short 25 February 2024 (CRWD) $282.50 calls at………….$21.20
Net Cost:……………………..…….………..……......................................$8.00
Potential Profit: $10 - $8 = $2
(12 X 100 X $2) = $2,400 or 25% in 17 days
If you are uncertain about 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.
