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 - (BLOK) – BUY
BUY the Amplify Transformational Data Sharing ETF (BLOK) $41-$46 in-the-money vertical Bull Call spread at $4.30
Opening Trade
9-7-2021
expiration date: October 15, 2021
Number of Contracts = 23 contracts
If you don’t do options, buy the stock. My target for (BLOK) this year is $70.
We got a massive “buy the rumor, sell the news” liquidity event for Bitcoin as the tiny Central American sovereign nation El Salvador adopted the currency as its official national currency.
They are the first to do so.
I am therefore buying the Amplify Transformational Data Sharing ETF (BLOK) $41-$46 in-the-money vertical Bull Call spread at $4.30.
This is a bet that BLOK will stay above $46 in the next 38 days.
Bitcoin is down 9-11% this morning and I 100% view this sell-off as a beautiful buy-the-dip opportunity in crypto assets.
El Salvador adopting Bitcoin as a national currency will NOT disrupt the overall narrative of higher bitcoin prices. Therefore, I see this as a great entry point into the best of the crypto assets including Ethereum (ETH) and Cardano (ADA).
My favorite crypto ETF is Amplify Transformational Data Sharing ETF (BLOK) which has morphed into one of the best crypto ETFs on the market since its inception.
(BLOK) is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies. It trades right at net asset value, meaning you don’t have to pay any premium whatsoever.
(BLOK)’s biggest two positions are Bitcoin proxy MicroStrategy (MSTR) and a Canadian crypto mining company called Hut 8 Mining Corp (HUT), which has already tripled since June.
I have already shot out a MicroStrategy (MSTR) trade alert to new readers and am incredibly bullish on the company.
However, this ETF encompasses more than (MSTR) offering broader exposure to firms related to Bitcoin, crypto miners, and software companies that are heavily into crypto.
Hut 8 engages in industrial-scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta, and 56 BlockBoxes in Medicine Hat, Alberta.
BlockBoxes is one of the most powerful and cost-effective bitcoin mining units available on the market.
(BLOK) doesn’t track bitcoin 1:1, but it does mimic the price action relatively closely, albeit with less extreme swings.
Controlling excess volatility is something you should be happy about.
(BLOK) also has an expense ratio of only 0.71%, which isn’t too expensive for those who want to buy and hold the ETF and not trade the derivative.
Buying (BLOK) is most likely the best way to ensure safe trading under the framework of the SEC, but I understand others have a higher risk profile which is also welcome.
To understand more about the ETF (BLOK), click here.
Here are the specific trades you need to execute this position:
Buy to Open 23 October 2021 (BLOK) $41 calls at………….………$10.50
Sell to Open 23 October 2021 (BLOK) $46 calls at……..........…....$6.20
Net Cost:……………………..…….………..……......................…….….....$4.30
Potential Profit: $5 - $4.3 = $.70
(23 X 100 X $.70) = $1,610 or 16.28% in 38 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.
