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) – BUY
BUY Adobe Inc. (ADBE) April 2022 $420-$440 in-the-money vertical BULL CALL spread at $15.00
Opening Trade
4-1-2022
expiration date: April 14, 2022
Portfolio weighting: 10%
Number of Contracts = 6 contracts
This is a tactical trade in a screaming buy in tech with software company Adobe (ADBE).
This is one of the best non-FANG tech names and I believe it's on sale right now.
The Nasdaq has been incredibly resilient in the face of negative news, I believe it’s a good time to place a direction bet with a 13-day time horizon for software giant ADBE.
This is quite an aggressive trade so more conservative traders can pull back their strike prices to match their risk tolerance.
Here are the specific trades you need to execute this position:
Buy 6 April 2022 (ADBE) $420 calls at………….………$39.00
Sell short 6 April 2022 (ADBE) $440 calls at………….$24.00
Net Cost:……………………..…............….………....…….....$15.00
Potential Profit: $20 - $15 = $5
(6 X 100 X $5) = $3,000 or 33.33% in 13 days
If you are uncertain on how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
