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 - Salesforce, Inc. (CRM) – BUY
Buy Salesforce, Inc. (CRM)) February 2023 $155-$160 in-the-money vertical BULL CALL spread at $4.30
Opening Trade
2-1-2023
expiration date: February 17, 2023
Portfolio weighting: 10%
Number of Contracts = 23 contracts
CRM or Salesforce is a quality tech stock and the stock is headed in the right direction after Elliot Vulture Fund invested in it.
Fed Chair Jerome Powell essentially said the same thing last time and it's clear he doesn’t want to rock the boat.
This is definitely a nod to the bulls who are betting on a more dovish Fed.
Don’t pay more than $4.45 – stocks are volatile during Fed meetings so place limit order.
Here are the specific trades you need to execute this position:
Buy to Open 23 February 2023 (CRM) $155 calls at……....…….…$15.95
Sell to short 23 February 2023 (CRM) 160 calls at……........….….$11.65
Net Cost:……………………..…….………...............................…..….....$4.30
Potential Profit: $5 - $4.30 = $.70
(23 X 100 X $.70) = $1,610 or 16.28% in 17 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.
