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Trade Alert - (PANW) April 8, 2015

Trade Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.

Trade Alert - (PANW) - BUY

Buy the Palo Alto Networks (PANW) May, 2015 $125-$135 deep in-the-money vertical call spread at $8.60 or best

Opening Trade

4-8-2015

expiration date: May 15, 2015

Portfolio weighting: 10%

Number of Contracts = 12 contracts

 

It looks like the cyber security sector, one of the best market performers so far in 2015, is about to take off like a rocket once again.

You can buy this vertical bull call spread anywhere within a $8.00-$9.25 range and have a reasonable expectation of making money on this trade by the May 15 expiration.

The spreads on these high priced options are wide, so don?t hold me to these prices. If you can?t do options, then buy the stock outright. There could be another 25%-50% in it this year.

You can participate through buying the $435 million capitalized PureFunds ISE Cyber Security ETF (HACK), which boasts Cyberark Software (CYBR), Infoblox (BLOX), and FireEye (FEYE) as its three largest positions. (HACK) has been a hedge fund favorite since the Sony attack.

For more information about (HACK), please click here at http://www.pureetfs.com/etfs/hack.html .

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.

If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.

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

Buy 12 May, 2015 (PANW) $125 calls at?????$21.75

Sell short 12 May, 2015 (PANW) $135 calls at..??.$13.15
Net Cost:??????????????????.....$8.60

Potential Profit: $10.00 - $8.60 = $1.40

(12 X 100 X $1.40) = $1,680 or 1.68% profit for the notional $100,000 portfolio.

PANW 4-8-15

feye 4-7-15

HACK 4-7-15

Hacker

Palo Alto logo

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