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 - (META) – BUY
BUY the (META) May 2024 $360-$370 vertical BULL CALL spread at $8.80 or best
Opening Trade
4-25-2024
expiration date: May 17, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
If the trading history of this year provides any lessons, it is that one-day meltdowns of the highest quality stocks are huge “BUYS”. Mark Zuckerberg’s request that shareholders show “patience” in the rollout of its AI strategy is absolutely what they did not want to hear. The word is poison to traders and delivered us an immediate 14% selloff in the stock. Everyone wants BIG PROFITS RIGHT NOW.
As a result, we get a great entry point in one of the front runners of the AI revolution. (META) is (NVIDIA)’s largest customer for high-end graphics chips, which says a lot.
Therefore, I am buying the (META) May 2024 $360-$370 vertical BULL CALL spread at $8.80 or best
Don’t pay for than $9.40 or you will be chasing.
Meta, originally founded by Mark Zuckerberg as Facebook in 2004, is the world’s preeminent social media company. It owns and operates Facebook, Instagram, and Threads, among other products and services. Meta ranks among the largest American information technology companies. If you haven’t heard of Meta, you’ve been living in a cave for the last 20 years.
This is a bet that the (META) will not fall below $370.00 by the May 17 option expiration in 16 trading days. It is also a bet that (META) does not break below the 200-day moving average at $372, some $60, or 13.67% lower, where it has huge support.
Here are the specific trades you need to execute this position:
Buy 12 May 2024 (META) $360 calls at………….………$73.00
Sell short 12 May 2024 (META) $370 calls at….………$64.20
Net Cost:………………………….………..…………......…......$8.80
Potential Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 16.00% in 16 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.
