Adoption And Profitability
A financial-services platform can grow as customers bring it more assets and use more of its products. A healthcare business can grow when a new treatment moves into routine medical care. Those opportunities depend on adoption: customers choosing to do more business, or physicians choosing a medicine for their patients.
Those are the two themes behind today’s bullish trades. Both come from Portfolio Armor’s Top Names, our daily ranking of securities by estimated six-month potential return. One is also a Multibaggers name, drawing on our specialist research list. Our third trade is bearish, from our screen for earnings downgrades in a downtrend, where weaker profitability accompanies a falling stock price.
The next earnings updates will help us judge how these opportunities are developing. Each trade pairs a longer-dated option with a January short option; the first also includes a put spread that helps fund the calls. We priced our options structures using three different models and set limit prices designed to get us in at a slight discount to fair value. The paid section contains the securities, options structures, maximum entry prices and pre-set exit orders to enter after fills.
New to our alerts? Start here for an overview of our approach:
Today’s First Top Names Trade
Theme: Customer assets and platform growth.
RSI: 51; Chartmill Technical Rating: 5; Setup Rating: 6; Fundamental Rating: 4.
