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) October 2023 $160-$165 in-the-money vertical BULL CALL spread at $4.98
Closing trade
10-18-2023
expiration date: October 20, 2023
Portfolio weighting: 10%
Number of Contracts = 22 contracts
We are taking profits in Apple shares with the underlying stock outperforming growth tech in the short-term.
The latest volatility means that many traders are looking for stability almost like a bank account.
Apple shares have stayed remarkably strong in the face of an onslaught of poor economic data.
The US consumer is weakening and the stuff people are buying is getting smaller, but people still have jobs and are still spending.
We are hoping for trading conditions to improve as the “recession scare” has largely passed without a recession.
Here are the specific trades you need to exit this position:
Sell to Close 22 October 2023 (APPL) $160 calls at………….………$16.60
Buy to Close 22 October 2023 (APPL) 165 calls at……...........…….$11.62
Net Proceeds:……………………..…….………..….........................….....$4.98
Profit: $4.98 - $4.45 = $0.53
(22 X 100 X $0.53) = $1,166 or 11.91%
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.
