As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.
Further Update to: Trade Alert -(AAPL)
Sell the Apple (AAPL) December $460-$490 bull call spread at $29.80 or best
Closing Trade-not for new subscribers
11-27-2013
expiration date: 12-20-2013
Portfolio weighting: 10%
Number of Contracts = 4 contracts.
We got the upside breakout that both Mad Day Trader Jim Parker, and I were expecting. After a month of tedious, sideways movement, the run up to Black Friday finally set this stock on fire. The haters just couldn?t take it down. The next upside resistance kicks in at $545, and if we break that, it will go straight to $565.
That means we have realized close to the maximum potential profit for this position. Time to take profits and roll up on the strikes and out in maturity. This is the umpteenth time I have done this in Apple this year.
I am not giving up on Steve Jobs? creation at this point by any means. In fact, I think we?re just getting started. My contacts in Southern China tell me that production for the iPhone 5s at Foxcon is getting ramped up dramatically. eBay is selling one iPad per second!
After chasing big blue chips all year, US money managers are in desperate search of a quality big cap laggard. Who better fits the bill than Apple, as the second largest company in the market with one of the lowest price/earnings multiples.
I think this is all the beginning of a long run that will continue all the way to the iPhone 6 launch in September, 2014, and the share price back up to its all time high of $706.
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.
Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months further out.
Here are the specific trades you need to execute this position:
Sell 4 December, 2013 (AAPL) $460 calls at????.$79.30
Buy to cover short 4 December, 2013 (AAPL) $490 calls a?$49.50
Net Cost:????????????....??..?.?......$29.80
Profit: $29.80 - $25.85 = $3.95
($3.95 X 100 X 4) = $1,580, or 1.58% for the notional $100,000 model portfolio.
