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) December 2021 $580-$600 in-the-money vertical Bull Call spread at $16.55
Opening Trade
11-29-2021
expiration date: December 17, 2021
Number of Contracts = 6 contract
MicroStrategy Incorporated (MSTR) is the publicly accepted proxy for the price of bitcoin and you can play this in the equity market.
That’s what we are about to do by executing an in-the-money bull call spread right now in MSTR.
We recently incurred a liquidity event when interest rates spiked higher causing a massive sell-off short-term in Bitcoin.
Bitcoin trended down to $54,000 which I didn’t expect.
Bitcoin is susceptible during liquidity events and most end up with the price down, another recent event was the Taproot Upgrade which actually made the technology better, but because the event meant that there is no next upgrade coming up soon, traders took profits.
I originally confided to you that $58,000 is a major support level for the digital gold and therefore, I am highly encouraged that Bitcoin is staging a major reversal today and 9% back up to my original line in the sand of $58,000.
I highly doubt that we will get another major spike in interest rates in the next 18 days which I should remind you was caused by the next covid variant.
It’s highly likely that this new variant won’t be materially different from the previous variant and in our case, not enough to structurally change the bitcoin market or even the bond market since it is just about priced in at this point.
This offers us a buying opportunity as we barrel straight into the debt ceiling crisis of December which is highly inflationary.
This is the time to rejig your capital to expose yourself to crypto assets for the next 18 days to partake in this Santa Claus debt ceiling rally. Enjoy!
Today could be the short-term bottom for the next 18 days.
Here are the specific trades you need to execute this position:
Buy to Open 6 December 2021 (MSTR) $580 calls at…………$113.80
Sell to Open 6 December 2021 (MSTR) $600 calls at………....$97.25
Net Cost:……………………..…….................………..………….….....$16.55
Potential Profit: $20 - $16.55 = 3.45
(6 X 100 X $3.45) = $2,070 or 20.85% 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.
