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 - Apple Inc. (AAPL) – BUY
BUY Apple Inc. (AAPL) April 2022 $165 - $170 in-the-money vertical BULL CALL spread at $4.30
Opening Trade
4-5-2022
expiration date: April 14, 2022
Portfolio weighting: 10%
Number of Contracts = 22 contract
This is a 9-trade wagering that Apple (AAPL) will stay above $170.
I am migrating into the best of the best here in tech and I view this mini dip as a buying opportunity short-term.
A Fed member said this morning that he expects a “rapid” reduction in the balance sheet as soon as May.
I have been trying to find an entry point into APPL for quite some time and now we are finally gifted one.
More aggressive traders can move up the strikes if need be.
I am bullish short-term in high quality tech stocks.
Here are the specific trades you need to execute this position:
Buy 22 April 2022 (APPL) $165 calls at………….………$11.80
Sell short 22 April 2022 (APPL) $170 calls at………….$7.50
Net Cost:………………............……..…….………..…….....$4.30
Potential Profit: $5 - $4.30 = $.70
(22 X 100 X $.70) = $1,540 or 16.30% in 9 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.
