As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.
Trade Alert - (AAPL) ? BUY
BUY the Apple (AAPL) June, 2015 $115-$120 deep in-the-money vertical call spread at $4.15 or best
Opening Trade
4-29-2015
expiration date: June 19, 2015
Portfolio weighting: 10%
Number of Contracts = 24 contracts
This is a good low risk/high return trade for new, entry level traders who have just signed up for my Trade Alert Service.
You can buy this vertical bull call spread anywhere within a $3.90-$4.30 range and have a reasonable expectation of making money on this trade. The volume in Apple options is immense, so you should have no trouble getting done close to these prices.
If you can?t do the options, then buy the stock outright. Inevitably, another rally will come along. The stock refuses to go down, and the good news is coming out almost daily.
From this point on, you are competing with Apple itself, which is attempting to buy back another $50 billion of its own stock.
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.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Buy 24 June, 2015 (AAPL) $115 calls at?????$15.00
Sell short short 24 June, 2025 (AAPL) $120 calls at..??.$10.85
Net Cost:??????????????????.....$4.15
Potential Profit: $5.00 - $4.15 = $0.85
(24 X 100 X $0.85) = $2,040 or 2.04% profit for the notional $100,000 portfolio.
