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) April 2022 $365-$385 in-the-money vertical Bull Call spread at $16.00
Opening Trade
3-22-2022
expiration date: April 14, 2022
Number of Contracts = 6 contracts
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 a 23-day time horizon.
BTC has proved to experience bullish price action during a kinetic war – 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 and BTC is melting up.
Here are the specific trades you need to execute this position:
Buy to Open 6 April 2022 (MSTR) $365 calls at………….………$104.00
Sell to Open 6 April 2022 (MSTR) $385 calls at………..............$88.00
Net Cost:……………………....................…….………..………….….....$16.00
Potential Profit: $20 - $16 = $4
(6 X 100 X $4) = $2,400 or 20.00% in 23 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.