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.
Tech Alert - Apple Inc. (AAPL) – TAKE PROFITS
SELL Apple Inc. (AAPL) February 2024 $170-$175 in-the-money vertical BULL CALL spread at $4.50
Closing Trade
2-1-2024
expiration date: February 16, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Apple opened 2024 with a raft of downgrades and the stock brought down the entire stock market because of Apple big weighting.
Apple shares then went up to $195 and then got caught up in the downdraft again.
Now that earnings are today, big tech has sold off on poor forecasts and even my Google position was hit quite hard.
Apple’s iPhone business has peaked and they are not growing sales.
I am cutting the risk here and taking a short profit in my AAPL bull call spread.
Here are the specific trades you need to exit this position:
Sell to Close 24 February 2024 (AAPL) $170 calls at………….………$16.95
Buy to Close 24 February 2024 (AAPL) 175 calls at……...........…….$12.45
Net Proceeds:……………………..……............................………..…….....$4.50
Profit: $4.50 - $4.20 = $0.30
(24 X 100 X $0.30) = $720 or 7.14%
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.