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) July, 2017 $152.50-$155 in-the-money vertical bear put spread at $2.42 or best
Closing Trade
7-19-2017
expiration date: July 21, 2017
Portfolio weighting: 10%
Number of Contracts = 43 contracts
With only TWO trading days to go, Apple is getting perilously close to our lower $152.50 strike price.
We are just one more gap opening from going out of the money with our position.
So, I am going to be ultra cautious here and stop out of my position in the July, 2017 $152.50-$155 in-the-money vertical bear put spread.
Protecting our enormous 2017 performance, up 24%, is paramount.
We got all the bad news about Apple that I expected, but the market doesn't care. The FANG's are on a tear, although extremely overbought.
This small gain will add to the 13.74% profit we took in on out long position in (AAPL) last week. So over all, we still made money on the combined "iron condor" position. These things work most of the time.
Even though (AAPL) shares moved $6.39 against us, we were still able to eke a profit out of these positions.
Such is the wonder of vertical bear put debit spreads.
July just isn't giving much to give prudent, thoughtful traders to work with.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Options House.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute a Vertical Bear Put Spread by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/.
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 with only 13 days 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.
Here are the specific trades you need to execute this position:
Sell 43 July, 2017 (AAPL) $155 puts at..............................$4.62
Buy to cover short 43 July, 2017 (AAPL) $152.50 puts at.........................$2.20
Net Proceeds:............................................................$2.42
Profit: $2.42 - $2.35 = $0.07
(43 X 100 X $0.07) = $301, or 3.0% in 16 trading days.
