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) June 2022 $155-$165 in-the-money vertical Bear Put at $8.80 or best
Opening Trade
5-23-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
Apple has just rallied a massive $10.00, or 7.6%, from the Thursday low so I am going to reestablish the short position I took profits on two days ago. Since then, the Dow Average has rallied a monster $1,700 points.
I am therefore buying the Apple (AAPL) June 2022 $155-$165 in-the-money vertical Bear Put at $8.80 or best.
Don’t pay more than $9.30 or you’ll be chasing.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.
This is a bet that Apple (AAPL) will not rise above $155 by the June 17 options expiration day in 18 trading days. For more about (AAPL), please click here for their website.
Here are the specific trades you need to execute this position:
Buy 12 June 2022 (AAPL) $165 puts at………..….………$23.00
Sell short 12 June 2022 (AAPL) $155 puts at…………....$14.20
Net Cost:………….........…………..…….……….………….….....$8.80
Potential Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 13.64%.
If you are uncertain about 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.
