EARN25

Schaeffer's Option Advisor Delivers Software Stock Win

Breaking down a big winner from Schaeffer's Option Advisor

Managing Editor
Jan 23, 2024 at 1:37 PM
facebook X logo linkedin


Option Advisor, Schaeffer's monthly subscription service that kickstarted all of this back in 1981, is right around the corner. To help kick off the first edition of 2024, Schaeffer's is offering up Option Advisor for 42% off!

Click here to access a lifetime subscription to Option Advisor for only $747!

Subscribers to Schaeffer's Option Advisor doubled their money with the Arista Networks Inc. (NYSE:ANETFebruary 17, 230-strike recommendation. We're going to take a look back to see why we were initially bullish on the cloud software stock, and how the options trade unfolded.

At the time of our recommendation in our January newsletter, which went live on our site on Dec. 21. ANET -- trading at roughly $235 -- was a momentum play after just having cleared the top rail of a channel connecting May-November peaks. This channel was on the rise and potential support going forward, after the bottom rail was a point of short-term hesitation point back in November and early December before getting cleared. 

Total put open interest (OI) outpaced call OI, and options were affordably pried at the moment. This was per ANET's Schaeffer's Volatility Index (SVI), that ranked lower than 90% of the readings in its annual range, hinting at extremely tame volatility expectations.

As expected, the shares stayed within that bullish channel. A key upgrade on Jan. 8 likely caught those options bears off guard, helping ANET gap higher to what then was a record high. We closed our position on Friday, Jan. 19, with ANET opening at roughly $260, allowing subscribers to collect the full 100% target achieved. 

Postmortem ANET

 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here