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) June 2022 $110-$120 in-the-money vertical Bull Call spread at $9.60 or best
Closing Trade
5-23-2022
expiration date: June 17, 2022
Portfolio weighting: 20%
Number of Contracts = 25 contracts - Double Position
In this kind of market, you take the money and run. Apple has just rallied $9.00 from the Friday low so I am going to do precisely that.
By coming out here, you get to take home 71.43% of the maximum potential profit. That amounts to $2,500, or 11.62% in only 7 trading days.
Well done and on to the next trade.
I am therefore selling the Apple (AAPL) June 2022 $110-$120 in-the-money vertical Bull Call spread at $9.60 or best.
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 lower your offer by 10 cents with a second order.
This was a bet that Apple (AAPL) would not fall below $120 by the June 17 option expiration day in 25 trading days.
For more about (AAPL), please click here for their website.
Here are the specific trades you need to exit this position:
Sell 25 June 2022 (AAPL) $110 calls at…………..........………$25.00
Buy to cover short 25 June 2022 (AAPL) $120 calls at…....$15.40
Net Proceeds:……………………..…….………...........……….….....$9.60
Profit: $9.60 - $8.60 = $1.00
(25 X 100 X $1.00) = $2,500, or 11.62%.
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.
