by Ian Harvey
October 04, 2019
On Monday, this week, Stock Options Made Easy advised, in the article “Crowdstrike and Cybersecurity” that with the sell-off of CrowdStrike, shares had reached a stage of oversold and a turnaround was expected soon. This turnaround occurred on Thursday, with a SunTrust analysts’ upgrade, and the stock soaring more than 9.5%.
For existing Armchair Traders, as well as those traders that joined us this week to profit from our success, a nice return of 100%, or more for those traders that sold at a maximum price on the day.
The recommended trade was…..
** OPTION TRADE: Buy the CRWD JAN 20 2020 60.000 CALL at approximately $3.90.
Place a high pre-determined sell at $7.80.
Include a protective stop loss of $1.55.
Yesterday saw the shares hit a high of $62.40, sending our call option up to $8.41. This would leave a potential profit of 115.6%.
A NICE WEEK'S WORK!
YOU NEED TO BE IN TO PROFIT!
(a thought ….. if you had bought 2 contracts of this trade, there would be enough profit to pay for a year’s membership of the“Armchair Trader Series”)
Why the Jump in Share Price for Crowdstrike Holdings?
Besides the facts outlined in the previous article, shares of the cybersecurity company CrowdStrike Holdings Inc. soared after SunTrust Robinson Humphrey upgraded the cybersecurity company, citing the "fastest growth rate at scale" of all the companies he covers.
Analyst Joel Fishbein assumed coverage of CrowdStrike at a buy, up from a previous rating of hold, and kept the price target at $80, which is 41% above Wednesday's closing price of $56.63. "CrowdStrike has delivered differentiated intelligent agent technology, Threat Graph database leveraging sophisticated [artificial intelligence] models and behavior analytics and an expansive set of cloud modules that address a wide variety of security use cases," Fishbein wrote in a note to clients.
CrowdStrike Holdings shares took a big hit last month, despite reporting a fiscal second-quarter loss that was narrower from a year ago and also narrower than analysts' forecasts. The stock had fallen 15.8% over the past three months through Wednesday.
The Sunnyvale, Calif.-based company, which the FBI used to assess the Russian hacking of the DNC, posted a non-GAAP net loss of $23.1 million, or 18 cents a share, vs. a loss of $30.4 million, or 69 cents a share, in the comparable year-ago quarter.
Analysts had been expecting a loss of 23 cents a share.
Sales nearly doubled year over year and were up 94%. Some 90% of those sales came from recurring revenue subscriptions, a segment that grew even faster than overall sales: up 98% year over year. CEO George Kurtz hailed the securing of "a record number of net new subscription customers in the quarter" as a key accomplishment.
The company next reports earnings on January 1, 2020. Analysts are expecting a loss of 12 cents a share on revenue of $118.9 million.
Join us today and see what future trades will be recommended!
Where to now?
Since CrowdStrike Holdings crushed expectations for their last earnings report, September 07, 2019, and is promising to do so again and again as the year rolls along – expect to see more upgrades which should mean continued soaring share price.
Where to now for CrowdStrike?
Will we recommend another options trade on CrowdStrike?
What will “Stock Options Made Easy” advise members to do?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!