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.
Mad Technology Letter Trade Alert - (CRM) - BUY
BUY the Salesforce (CRM) March, 2018 $90-$95 in-the-money vertical BULL CALL spread at $4.40 or best
Opening Trade
2-8-2018
expiration date: March 16, 2018
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Salesforce is melting up and I want to hitch my wagon to the cloud.
Microsoft (MSFT) just announced explosive growth of its cloud based services revenues, as did Amazon (AMZN) and Alphabet (GOOGL).
And if you like Microsoft, you absolute have to LOVE salesforce (CRM), which has a gigantic presence in the cloud.
To lose money on this trade Salesforce would have to fall below $95 by the March 16 options by expiration day. Given the tailwind technology now has behind it, I believe that is unlikely.
Don't pay more than $4.60 for this position or you'll be chasing.
If you don't do options, close your eyes and buy Salesforce shares outright. I think the share price is completing a time correction that will end shortly.
To learn more about Salesforce, please read the in depth report today you received with your subscription to the Mad Hedge Technology Letter.
Also, please email Nancy in customer support at support@madhedgefundtrader.com to get you into the dedicated technology text alert service. Just put "TECHNOLOGY TEXT ALERTS" in the subject line and be sure to include you cell phone number.
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 23 March 2018 (CRM) $90 calls at................................$17.50
Sell short 23 March 2018 (CRM) $95 calls at........................$9.70
Net Cost:..............................................................................
Potential Profit: $5.00 - $4.40 = $0.60
(23 X 100 X $0.60) = $1,380 or 13.63% in 30 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.
