Trade Alert - (PANW) May 21, 2025

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) – BUY

Buy Palo Alto Networks, Inc. (PANW) June 2025 $160-$170 in-the-money vertical BULL CALL spread at $8.30

Opening Trade

5-21-2025

expiration date: June 20, 2025

Portfolio weighting: 10%

Number of Contracts = 12 contracts

I like PANW in the next 30-day time horizon as PANW delivered a weak forecast after beating earnings. I am willing to execute a deep in the money call spread even though we have had a V-shaped rally.

This is a very conservative trade, and now is not the time to bet the ranch. Don’t pay more than $8.50.

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

Buy to Open 12 June 2025 (PANW) $160 calls at…………$24.70

Sell to short 12 June 2025 (PANW) $170 calls at………….$16.40

Net Cost:……………………..…….………..………………………….$8.30

Potential Profit: $10 – $8.30 = $1.70

(12 X 100 X $1.70) = $2,040 or 20.48% in 30 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.

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