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 - (MSFT) – BUY
BUY the Microsoft (MSFT) February 2024 $330-$340 in-the-money vertical Bull Call spread at $8.70 or best
Opening Trade
1-8-2024
expiration date: February 16, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
If you don’t do options, buy the stock. My target for (MSFT) this year is $450, up 20%. I expect (MSFT) to hit a new all-time high before yearend.
(MSFT) is the new safe stock in the market, thanks to the accelerated growth of its Azure cloud business. It is an American multinational technology company headquartered in Redmond, WA. Microsoft's best-known software products are the Windows line of operating systems, the Microsoft 365 suite of productivity applications, and the Edge web browser.
Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 14 in the 2022 Fortune 500 rankings of the largest United States corporations by total revenue. It was the world's largest software company by revenue as of 2022.
I am therefore buying the Microsoft (MSFT) February 2024 $330-$340 in-the-money vertical Bull Call spread at $8.70 or best.
Don’t pay more than $9.00 or you’ll be chasing.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.
This is a bet that Microsoft (MSFT) will not fall below $340 by the February 16 option expiration day in 28 trading days.
For more about (MSFT) please click here for their website.
Here are the specific trades you need to execute this position:
Buy 12 February 2024 (MSFT) $330 calls at…………....…$46.00
Sell short 12 February 2024 (MSFT) $340 calls at……....$37.30
Net Cost:……….…………..…….………...…………...........….......$8.70
Potential Profit: $10.00 - $8.70 = $1.30
(12 X 100 X $1.30) = $1,560 or 14.94% in 28 trading days.
If you are uncertain about 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.
