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) – BUY
Buy Apple Inc. (AAPL) February 2024 $170-$175 in-the-money vertical BULL CALL spread at $4.20
Opening Trade
1-9-2024
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's big weighting.
Now that Apple is on discount, I do believe the risk-reward is favorable to jump in with a trade to the upside.
This is a trade that Apple will end over $175 by February 16th.
Tech had a great year last year and so it’s quite healthy for big tech to experience a modest pullback. The tailwind of the Fed pivot will be strong in 2024 and readers should ride on the coattails of it to profit.
Don’t pay more than $4.30.
Here are the specific trades you need to execute this position:
Buy to Open 24 February 2024 (AAPL) $170 calls at .………$16.70
Sell to short 24 February 2024 (AAPL) 175 calls at ………….$12.50
Net Cost:…………………....................…..…….………..…….........$4.20
Potential Profit: $5 - $4.20 = $0.80
(24 X 100 X $0.80) = $1,920 or 19.05% in 38 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.
