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 - (CRM) - BUY
BUY the Salesforce (CRM) June, 2018 $105-$110 in-the-money vertical BULL CALL spread at $4.00 or best
4-10-2018
expiration date: June 15, 2018
Portfolio weighting: 10%
Number of Contracts = 25 contracts
The is a great chance to get into one of the fastest growing technology companies at a bargain basement price.
Better yet, Salesforce will be announcing all-time record profits on May 17, 2018. Shortly after that, an aggressive share buyback program will resume, taking the stock to new highs.
Salesforce has minimal Chinese business, exempting it from the next trade war related tweet out of Washington
Therefore, I am buying the Salesforce (CRM) June, 2018 $105-$110 in-the-money vertical BULL CALL spread at $4.00 or best.
I'll take the 25% profit on a two month view every time I can find it.
The real call here is that the NASDAQ has entered a well-defined trading range, from 6,600 to 7,600, where it will remain trapped for six months until the November midterm congressional elections.
Yes, the 2018 lows are in. After that, we will rocket 10% in yearend rally.
The deep in-the-money call spread strategy I employ is ideally suited to this kind of go nowhere market. While other traders are tearing their hair out, you'll be raking in the money every month as if you've just been adopted by a new rich uncle.
Don't pay more than $4.25 for this position or you'll be chasing.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
Here are the specific trades you need to execute this position:
Buy 25 June 2018 (CRM) $105 calls at..................$26.00
Sell short 25 June 2018 (CRM) $110 calls at..........$22.00
Net Cost:.......................................................................$4.00
Potential Profit: $5.00 - $4.00 = $1.00
(25 X 100 X $1.00) = $2,500 or 25% in 49 trading days.
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
You must be logged into your account to view the video.
Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
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 close to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.