When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (AAPL) – EXPIRATION
EXPIRATION of the Apple (AAPL) April 2020 $240-$250 in-the-money vertical Bull Call spread at $10.00
Closing Trade
4-17-2020
expiration date: April 17, 2020
Portfolio weighting: 10%
Number of Contracts = 11 contracts
13 OUT OF THE LAST 14 TRADE ALERTS HAVE NOW CLOSED OUT PROFITABLE.
Our long position in Apple worked out well. We received several assists. The government announced a back-to-work program hours before the worst Weekly Jobless Claims in history. It’s part of their never-ending strategy to get stocks back up to the old highs before the election.
Also on Thursday, we received leaked, anecdotal evidence that Gilead Sciences’ (GILD) Remdesivir brings speedy recovery in the most severe Corona cases. That was worth a 650-point rally in the Dow.
Apple stayed well within its maximum profit point, even though Goldman Sachs tried to pee on our parade with an Apple downgrade.
You don’t have to do anything with an option expiration. The profit should be deposited into your account and the Margin freed up on Monday. If it isn’t, get on the phone with your broker immediately.
As a result, you have earned $990 or 9.87% in 4 trading days. Well done and on to the next trade.
This position also had the benefit of huge support at the 200-day moving average at $251.82. I think the days of cataclysmic $1,500-$2,000 point Dow days in the Dow are behind us, so it is safe to start putting on these very short term plays.
This was a bet that Apple (AAPL) will not trade below $250 by the April 17 option expiration day in only four trading days.
Here are the specific trades you need to exit this position:
EXPIRATION of 11 April 2020 (AAPL) $240 puts at…………$37.34
EXPIRATION of short 11 April 2020 (AAPL) $250 puts at...$27.34
Net Proceeds:……………………..…….………..……......…….….....$10.00
Profit: $10.00 - $9.10 = $0.90
(11 X 100 X $0.90) = $990 or 9.87% in 4 trading days.
