Trade Alert – (PANW) June 4, 2025 – TAKE PROFITS – SELL

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) – TAKE PROFITS

SELL Palo Alto Networks, Inc. (PANW) June 2025 $160-$170 in-the-money vertical BULL CALL spread at $9.95

 

Closing Trade

6-4-2025

expiration date: June 20, 2025

Portfolio weighting: 10%

Number of Contracts = 12 contracts

PANW sold off on a poor earnings forecast, and we bought the dip.

The stock has rallied hard into the mid-$190s area, and we are taking profits here.

The Nasdaq has done quite well in the short term as the overall strength of the sector has really muscled its way through any headwind.

I would be looking at high-quality cybersecurity companies to buy the dip in the short term.

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

Sell to Close 12 June 2025 (PANW) $160 calls at…………..…$36.60

Buy to Close 12 June 2025 (PANW) $170 calls at……………..$26.65

Net Proceeds:……………………..…….………..………………………..$9.95

Profit: $9.95 – $8.30 = $1.65

(12 X 100 X $1.65) = $1,980 or 19.88%

 

 

 

 

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.