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.
Tech Alert - Adobe Inc. (ADBE) – EXPIRATION
EXPIRATION of Adobe Inc. (ADBE) August 2020 $400-$405 in-the-money vertical BULL call spread at $5.00
Closing Trade – NOT FOR NEW SUBSCRIBERS
8-21-2020
expiration date: August 21, 2020
Portfolio weighting: 10%
Number of Contracts = 23 contracts
This was a short-term bet that Adobe will stay above $405 by the August 21st expiration.
This is one of the best tech stocks that doesn’t have a monopoly. Shares are now trading over $470 and we easily cashed in on this trade.
I like that the 5-year beta is .93 and this stock has moved up in a straight line since bottoming in March.
Adobe is the best cloud stock connected with generating digital content and especially premium content.
Not only is the software operated at a professional level, but the company is pumping out 20%+ year over year growth each quarter.
I am only focusing on the strongest names in the tech sector for these short-term trades in an attempt to hide out from the chaos going on with the U.S. economy.
Do not give up on technology because as Zoom Communications (ZM) showed us, the epidemic is bringing forward the future of business by forcing employers to go digital.
Accelerating the process will only help technology companies accrue more incremental revenue while legacy industries like brick and mortar retail are out of luck.
Here are the specific trades you need to execute this position:
Expiration of 23 August 2020 (ADBE) $400 call at………….………$73.00
Expiration of 23 August 2020 (ADBE) $405 call at…….........…….$88.00
Net Proceeds:……………………............................…….………..…….....$5.00
Profit: $5 - $4.20 = $.80
(23 X 100 X $.80) = $1,840 or 18.40% in 24 days
