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) June 2023 $160-$165 in-the-money vertical BULL CALL spread at $4.00
Opening Trade
5-24-2023
expiration date: June 16, 2023
Portfolio weighting: 10%
Number of Contracts = 25 contracts
Hard to believe I haven’t executed a bullish trade in Apple this year.
Apple is one of the big winners of the 2023 tech rally and now Apple and Microsoft comprise about 10% of the S&P. Highly concentrated winners is how the US economy will play out in the short and long term.
Don’t fight the trend so get into this stock and it has dipped a little as the horrendous mismanagement of the Federal government continues to hamper the economy. US bonds are priced worse than Mexico and Greece now!
At some point, the $32 trillion of debt will cause catastrophe but not yet and the calmness in the stock market reflects that nobody cares.
Both ways, the debt limit will be increased and tech is setting up for a monster rally.
The official projection is for the federal debt to double by 2052. Tech stock will be a lot higher by then too.
Don’t pay more than $4.10.
Here are the specific trades you need to execute this position:
Buy to Open 25 June 2023 (APPL) $160 calls….………$12.95
Sell to short 25 June 2023 (APPL) 165 calls at………….$8.95
Net Cost:……………………..…….……….................…….....$4.00
Potential Profit: $5 - $4.00 = $1.00
(25 X 100 X $1.00) = $2,500 or 25.00% in 23 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.
