I love blending both day trading, swing trading and combining both with solid option trading. I love focusing on gap and keeping my eyes on what it does for both a day trade or a swing trade.
The last time I really had my eyes on PANW was back at $125. However, by the time you read this, it appears PANW is gapping down nicely on earnings.
An open below the $142 level will be specifically bearish in my opinion. I would love for PANW to quickly retest at some point the $142 – $143 price range and look to buy $140 puts (which expire this week Nov 25th, 2016.) So yes, this will be a day trade. The price on the $140 option could be around .80 if PANW can actually retest.
Also though, I’ll keep an eye on it for a swing trade as well. Maybe some out of the money options as a potential target of $120 into mid-January sometime.
If you have any questions or would like any updates, feel free to post any questions below. Thanks for reading! You rock!
Jerremy Alexander Newsome (CEO and only guy with a mo-hawk at Real Life Trading)
