by Ian Harvey
IMPORTANT NOTE: This is a recommendation and individual members can use their own discretion as to when to enter or exit!
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Option Trade – Dow Chemical (NYSE:DOW) Calls
Thursday, April 04, 2019
** OPTION TRADE: Buy the DOW JUN 21 2019 60.000 CALL at approximately $1.25. Place a pre-determined sell at $2.50.
Also include a protective stop loss of $0.50.
Recently, Dow Chemical (NYSE:DOW) was spun off from DowDuPont, with the
former trading as a component of the price-weighted Dow Jones Industrial
Shares of the new Dow Jones Industrial Average member Dow Inc., trading under the ticker symbol "DOW," has started to move upwards, after the materials science company was spun off from previous Dow component DowDuPont Inc. (DWDP). The spinoff was effective as of 5 p.m. Eastern on April 1.
announcement completes our first step toward creating three strong, independent
growth companies set to be industry leaders focused on driving innovation and
delivering long-term value for shareholders," said Ed
Breen, chief executive officer of DowDuPont. "Dow begins its next chapter as a more focused, disciplined and
market-oriented company, and I am excited for the tremendous opportunities
ahead for its employees, shareholders, and customers."
Analysts have been on the move with this stock….
Dow, a materials science-focused company with divisions in packaging,
infrastructure and consumer care, will replace DowDuPont in the 30-stock
average. It will also trade in the S&P 500 as Brighthouse Financial Inc. (BHF)
is removed from the broader benchmark.
Dow was spun from its larger parent, a creation of the $130 billion
merger between Dupont and Dow, as part of a plan to create three separate
companies focusing on agriculture, specialty products and plastics. Cortvea,
DowDuPont's agriculture unit, will separate on June 1.
"Today marks the
beginning of a new and exciting chapter for Dow," said CEO
Jim Fitterling. "The changes we have
made to Dow's portfolio, cost structure and mindset are significant. The new
Dow is a more focused and streamlined company with a clear playbook to deliver
long-term earnings growth and value creation for all stakeholders."
DowDuPont shareholders were offered 1 Dow share for every 3 of their own holdings, with the option of a cash payment in lieu, from the December 2015 split.
Option Trade – Zscaler Inc (NASDAQ: ZS) Calls
Wednesday, April 03, 2019
** OPTION TRADE: Buy the ZS JUN 21 2019 75.000 CALL at approximately $5.60. Place a pre-determined sell at $11.20.
Also include a protective stop loss of $2.25.
Cloud security company Zscaler Inc (NASDAQ: ZS) has been
closing at all-time highs and is expected to continue its upward trajectory.
Shares of Zscaler soared 22% to close at a record $60.57 after the
company’s results and outlook came in better than analysts expected last month.
And, is now sitting around the $70.00 mark waiting for its next leg-up.
Revenue growth accelerated and adjusted profits were pushed into
positive territory, with costs rising more slowly than the top line. The company's
approach to security seems to be resonating with its customers, and it sees
multiple tailwinds that should drive long-term growth.
CEO Jay Chaudhry explains the company's advantage…..
“Imagine 80% of luggage
passing through airport security unchecked. You can't, because that would be
unacceptable. But this is exactly what happens when organizations attempt to
use next-gen firewalls to protect users. Zscaler is natively designed as a full
SSL proxy, which means our customers can inspect encrypted traffic without
impacting user experience, leading to better security and renewed businesses.”
Chaudhry also talks about the company's competition and growth
opportunities: "These imitators
can't scale, leave gaps in security, are expensive, and deliver poor user
experience. With multiple tailwinds, such as SaaS adoption, SD-WAN and app
migration to public clouds, we believe the market is coming to us."
"We are seeing success
in disrupting the traditional network security market, with a globally
distributed cloud security platform that consistently applies policies and
protections no matter the device or location," Jay
Chaudhry said in a statement. “We are
increasingly viewed as a strategic foundation to our customers' network and
security transformation towards a cloud and mobile first world."
Many other analysts are also optimistic about Zscaler…..
the 16 analysts that cover Zscaler, seven have buy ratings, seven have hold
ratings, and two have sell ratings. Of those, six hiked their price targets on
Zscaler to an average target of $50.67.
Zscaler is scheduled to issue its next earnings report on Wednesday, June 5th…..
With rapid revenue growth and improving profitability, the company has a strategy that is clearly working. The cybersecurity market should provide plenty of growth opportunities in the coming years, giving Zscaler a long runway.