Nutanix: Switch To Calls
The shares of @Nutanix Inc. are up massively over the past year. I think investors would be wise to take profits at these levels.
I go through my reasoning by looking at the financials and recent insider selling activity.
While I don’t like the stock at these levels, I don’t think the crowd that drove it higher will catch sanity anytime soon.
For those people who insist on staying long, calls offer much of the upside at far less risk. I offer my favorite call option.
Over the past twelve months, the shares of Nutanix Inc. (NASDAQ:NTNX) are up about 135%, though as I write this, shares are down ~5% on the day. That is certainly an impressive return over a year, and a strong indication of the volatility in the name. In my view, investors would be wise to take the money and run at this point. The shares may continue to rally from these levels, but with each dollar uptick, the risk also rises. I’ll go through my reasoning by unpacking the financial history here, and by looking at the stock itself.