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) October 2021 $136-$141 in-the-money vertical BULL call spread at $4.34
Opening Trade – FOR ALL SUBSCRIBERS
9-24-2021
expiration date: October 15, 2021
Portfolio weighting: 10%
Number of Contracts = 23 contracts
This is a short-term bet that Apple Inc. (AAPL) will stay above $141 by October 15th expiration.
Apple has iron-clad support at $142 and after this big dip from the high $150s, I am willing to bet in the next 22 days that Apple can hold this technical level.
A lot of short-term negativity has been priced into the market like the taper talk, China weakness, Delta discord, inflation scares, chip shortage, and crypto clampdown. Did I miss anything?
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 23 October 2021 (AAPL) $136 calls at………….………$10.88
Sell short 23 October 2021 (AAPL) $141 calls at………..….$6.54
Net Cost:……………....................………..…….………..…….....$4.34
Potential Profit: $5 - $4.34 = $.66
(23 X 100 X $.66) = $1,518 or 15.21% in 22 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.
