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 - (AAPL) – BUY
BUY the Apple (AAPL) August 2024 $225-$235 in-the-money vertical Bear Put debit spread at $9.00 or best
Opening Trade
8-6-2024
expiration date: August 16, 2024
Number of Contracts = 12 contracts
With the Volatility Index ($VIX) opening at a lofty $33 this morning, greatly inflating options prices, there is still room to add some extreme in-the-money short side hedges.
I can also use this short position to partially hedge the long positions already in my trading portfolio.
I am therefore buying Apple (AAPL) August 2024 $225-$235 in-the-money vertical Bear Put debit spread at $9.00 or best.
Don’t pay more than $9.50 or you’ll be chasing on a risk/reward basis.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 5 cents with a second order.
To learn more about the company please, visit their website at www.apple.com
This is a bet that Apple will not rise above $225 by the August 16 option expiration in 8 trading days, a new all-time high.
Apple Inc. (formerly Apple Computer, Inc.) based in Cupertino, CA is the second largest publicly listed company in the United States (after Microsoft) with a market capitalization of $2.64 trillion. It dominates in smart phones with a 66% US market share and accounts for 90% of global profits.
It designs, develops, and sells a variety of consumer electronics, computers and their software, and online services. Its products include the iPhone, iPad, Apple Watch, Mac computers, the artificial reality Vision Pro headset, and Apple TV. It is also entering the movie production and distribution business. In my early days, I knew the co-founders Steve Jobs and Steve Wozniak.
Here are the specific trades you need to execute this position:
Buy 12 August 2024 (AAPL) $235 puts at………….…..……$31.00
Sell short 12 August 2024 (AAPL) $225 puts at……………$22.00
Net Cost:…………………..……….………….…...........................$9.00
Potential Profit: $10.00 - $9.00 = $1.00
(12 X 100 X $1.00) = $1,200 or 11.11% in 8 trading days.
If you are uncertain about 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.
