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.
Tech Alert - Apple Inc. (AAPL) - BUY
BUY Apple Inc. (AAPL) July 2021 $115-$120 in-the-money vertical BULL call spread at $4.50
Opening Trade – ALSO FOR NEW SUBSCRIBERS
6-10-2021
expiration date: July 16, 2021
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This is a short-term bet that Apple Inc. (AAPL) will stay above $120 by July 16th expiration.
I was surprised that AAPL didn’t take off like a scalded chimp at the open because the rest of the FANGs did.
The futures and opening reaction to the inflation numbers mean that the economy most likely will be able to stomach the higher costs and pass it on successfully.
The market isn’t freaking out to a possible taper tantrum.
Apple is most likely on the verge of breaking out here and I would add with every pullback.
I have recently taken profits on a series of Bull Call Spreads and we are receiving signals that tech will be a recipient of a rotational windfall.
It’s time to revert to high quality in a tech sector that is not cheap.
This company has proven to be the quintessential buy the dip tech company.
Aggressive traders can roll up their strike prices.
If you don’t do options, buy and hold long-term because the stock should hit $170 by end of this year.
Here are the specific trades you need to execute this position:
Buy 22 July 2021 (AAPL) $115 calls at………….………$13.10
Sell short 22 July 2021 (AAPL) $120 calls at………….$8.60
Net Cost:……………............………..…….………..…….....$4.50
Potential Profit: $5 - $4.50 = $.50
(22 X 100 X $.50) = $1,100 or 11.11% in 36 days
If you are uncertain on 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.
