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 - MicroStrategy Incorporated (MSTR) – BUY
BUY the MicroStrategy Incorporated (MSTR) March 2022 $335-$385 in-the-money vertical Bull Call spread at $40.00
Opening Trade
3-1-2022
expiration date: March 18, 2022
Number of Contracts = 2 contract
MicroStrategy Incorporated (MSTR) is the publicly accepted proxy for the price of bitcoin and you can play this in the equity market.
This is a short-term bullish tactical trade with an 18-day time horizon.
BTC has proved to experience bullish price action during a kinetic war and on the eve of the “siege of Kiev” – the situation appears like it is about to go from bad, to worse, to straight up ugly in Eastern Europe.
A prolonged war will keep the price of BTC high.
A deep-in-the-money bull call spread will make money if MSTR, a bitcoin proxy, stays above $385 in 18 days.
Ironically, BTC has proved to be a poor performer in higher than normal inflationary metrics, but escalate that to threat of nuclear war where governments are freezing the money of other governments and Russia banning money being sent abroad and BTC looks like a good alternative.
Here are the specific trades you need to execute this position:
Buy to Open 2 March 2022 (MSTR) $335 calls at………….………$135.00
Sell to Open 2 March 2022 (MSTR) $385 calls at……..........…....$95.00
Net Cost:……………………..…….………..………....................….….....$40.00
Potential Profit: $50 - $40 = $10
(2 X 100 X $10) = $2,000 or 25.00% in 18 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.
