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 - (AAPL) – BUY
BUY the Apple (AAPL) June 2024 $200-$210 in-the-money vertical Bear Put debit spread at $9.00 or best
Opening Trade
5-6-2024
expiration date: June 21, 2024
Number of Contracts = 12 contracts
As we enter the summer doldrums, I am willing to bet that Apple will not go to a new all-time high in five weeks. I believe that (AAPL) is enter trading range along with the rest of the AI world.
The Earnings announced on Thursday were awful. And while the $110 billion share buyback was impressive, I happen to know that apple has its own professional trading desk for its own shares and they prefer to buy bottoms, not tops. Authorized “BUYS” don’t always translate into actual “BUYS”.
I can also use this short position to partially hedge the four long positions already in my trading portfolio. There are no big macro numbers for the economy until we get the next CPI on May 10. There will be no dramatic announcements regarding Apple itself until the developers’ conference in June.
I am therefore buying Apple (AAPL) June 2024 $200-$210 in-the-money vertical Bear Put debit spread at $9.00 or best
Don’t pay more than $9.50 or you’ll be chasing on a risk/reward basis.
Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES. Just enter a limit order and work it.
To learn more about the company please visit their website at www.apple.com
This is a bet that Apple will not rise above $200 by the June 21 option expiration in 34 trading days, a new all-time high.
Apple Inc. (formerly Apple Computer, Inc.) based in Cupertino CA is the second largest publicly listed company in the United States (after Microsoft) with a market capitalization of $2.64 trillion. It dominates in smart phones with a 66% US market share and accounts for 90% of global profits.
It designs, develops, and sells a variety of consumer electronics, computers and their software, and online services. Its products include the IPhone, iPad, Apple Watch, Mac computers, the artificial reality Vision pro headset, and Apple TV. It is also entering the movie production and distribution business. In my early days I knew the co-founders Steve Jobs and Steve Wozniak.
Here are the specific trades you need to execute this position:
Buy 12 June 2024 (AAPL) $200 puts at………….………$28.00
Sell short 12 June 2024 (AAPL) $210 puts at………….$19.00
Net Cost:………………………….………….….....................$9.00
Potential Profit: $10.00 - $9.00 = $1.00
(12 X 100 X $1.00) = $1,200 or 11.11% in 28 trading days.
If you are uncertain about how to execute a bear put 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.
