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 - (AAPL) STOP LOSS
SELL the Apple (AAPL) March, 2018 $180-$185 in-the-money vertical Bear Put spread at $3.55 or best
Closing Trade
2-26-2018
expiration date: March 16, 2018
Portfolio weighting: 10%
Number of Contracts = 22 contracts
It is another day of unbelievable, unprecedented moves in the stock market on no news, and it looks like Apple (AAPL) is going to make another run at an all-time high.
I am therefore not going to wait for the share price to cross my lower strike price before stopping out.
I am selling my position in the Apple (AAPL) March, 2018 $180-$185 in-the-money vertical Bear Put spread at $3.55 or best.
Here are the specific trades you need to exit this position:
Sel1 22 March 2018 (AAPL) $185 puts at..................................................$7.65
Buy to cover short 22 March 2018 (AAPL) $180 puts at........................$4.10
Net Proceeds:.........................................................................................$3.55
Loss: $4.25 - $3.55 = $0.70
(22 X 100 X $0.70) = $1,540 or 16.47%.
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.
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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.
