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) September, 2017 $140-$145 in-the-money vertical BULL CALL spread at $4.50 or best
Opening Trade
8-21-2017
expiration date: September 15, 2017
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This is a bet that Apple shares will NOT FALL below $145 by the September 15 option expiration in 18 trading days, compared to the current $156.46.
To lose money on this trade Apple would have to crash in front of its momentous IPhone 8 launch, which isn't going to happen.
Don't pay more than $4.65 for this position or you'll be chasing.
If you don't do options, buy Apple shares. Longer term, I think Apple will continue to appreciate, possibly to $200 by some time in 2018.
We just have to give the market a chance to have a few more heart attacks before the current correction ends.
To see how to enter this trade in your online platform, please look at the order ticket below, from Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute a Vertical Bear Put Spread by clicking here at
http://members.
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.
Here are the specific trades you need to execute this position:
Buy 22 September, 2017 (AAPL) $140 calls at.............................................$17.15
Sell short 22 September, 2017 (AAPL) $145 calls at...............................$12.65
Net Cost:........................................................................................................
Potential Profit: $5.00 - $4.50 = $0.50
(22 X 100 X $0.50) = $1,100 or 11.11% in 18 trading days.
