After writing about Palo Alto Networks Inc ($PANW) on Monday, there were several requests for information on the original trade.
We cut out a snippet from the webinar to give you a better insight into why we chose PANW at that time.
So here is a quick video on the entry:
The trade that most of the subscribers entered was buying the 140 strike Aug 4 Puts at about $2.75 on Tuesday, July 25th with stock about $139.46.
On July 28th PANW had fallen down to close around $133.70, and we started to discuss the movement around the 50day Simple moving Average.
On July 31st the stock had fallen through the 50SMA to close around $131.78. On this day we discussed with our subscribers rolling from the 140 puts to the 130 Puts.
We sold the $140 puts for on average for about $7.10 for a profit of ($7.1-$2.75) $4.35. This resulted in a Return on Investment of 158%.
Some subscribers stayed in the trade with a roll to the 130 puts which they bought for $1.35 with the potential for the stock to keep falling to fill the gap.
Hope this helps to highlight the trade and what Lighthouse Point Options is all about!
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