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) - BUY
BUY the Apple (AAPL) July, 2018 $180-$185 in-the-money vertical BULL CALL spread at $4.10 or best
Opening Trade
6-5-2018
expiration date: July 20, 2018
Portfolio weighting: 10%
Number of Contracts = 25 contracts
I'm being a little aggressive buying Apple at an all-time high. But with $100 billion in share buybacks scheduled for this year how could I not.
The upside breakout in technology shares should take (AAPL) up to my long held 2018 target of $200 and make it the world's first $1 trillion company.
Don't pay more than $4.40 for this position or you'll be chasing.
This is a bet that Apple shares will not trade below $185 by the July 20 options expirations in 32 trading days.
If you don't do options, close your eyes and buy Apple shares outright, or more likely add them to your existing positions.
Here are the specific trades you need to execute this position:
Buy 25 July 2018 (AAPL) $180 calls at................$14.50
Sell short 25 July 2018 (AAPL) $185 calls at..........$10.40
Net Cost:............................................................$4.10
Potential Profit: $5.00 - $4.10 = $0.90
(25 X 100 X $0.90) = $2,250 or 21.95% in 32 trading days.
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.