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) – TAKE PROFITS
SELL the Apple (AAPL) February 2023 $155-$160 in-the-money vertical Bear Put at $4.40 or best
Closing Trade
2-2-2023
expiration date: February 17, 2023
Portfolio weighting: 10%
Number of Contracts = 25 contracts
Jay Powell was plenty negative in yesterday’s press conference. But people heard what they wanted to hear. With each negative comment, the market ticked down, eventually reach a loss of 500 points.
In fact, they are all net short or underweight equities and were looking for excuses to BUY, far more short than I thought.
As much as I hate to sell this here, I have to maintain my rigid stop-loss discipline.
I am therefore selling the Apple (AAPL) February 2023 $155-$160 in-the-money vertical Bear Put at $4.40 or best.
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 lower your offer by 5 cents with a second order.
I believe that Apple will stage a bigger recovery in the future, but this will be a second half of the year game.
This was a bet that Apple (AAPL) would not rise above $155 by the February 17 option expiration day in 13 trading days. For more about (AAPL), please visit their website at https://www.apple.com
Here are the specific trades you need to close out this position:
Sell 25 February 2023 (AAPL) $160 puts at…………....………$11.00
Buy cover short 25 February 2023 (AAPL) $155 puts at…....$6.60
Net proceeds:……………………..……........………..………….….....$4.40
Profit: $4.40 - $4.30 = $0.10
(25 X 100 X $0.10) = $250 or 2.32% in 2 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.
