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 2024 $200-$210 in-the-money vertical Bear Put debit spread at $9.90 or best
Closing Trade
5-28-2024
expiration date: June 21, 2024
Number of Contracts = 12 contracts
The report of Apple’s disastrous China sales this morning has sent the shares plunging. As a result, we now have 90% of the maximum potential profit in hand. The risk-reward of continuing with this position for 17 more days is no longer favorable.
As we enter the summer doldrums, I was willing to bet that Apple would not go to a new all-time high in five weeks. I believed that (AAPL) is entering the trading range along with the rest of the AI world.
The earnings recently announced were awful. And while the $110 billion share buyback was impressive, I happen to know that Apple has its own professional trading desk for its own shares and they prefer to buy bottoms, not tops. Authorized “BUYS” don’t always translate into actual “BUYS”.
I am therefore selling Apple (AAPL) June 2024 $200-$210 in-the-money vertical Bear Put debit spread at $9.90 or best.
Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES. Just enter a limit order and work it.
To learn more about the company, please visit their website at www.apple.com
This was a bet that Apple would not rise above $200 by the June 21 option expiration in 15 trading days, a new all-time high.
Here are the specific trades you need to close out this position:
Sell 12 June 2024 (AAPL) $210 puts at………….…................……$21.00
Buy to cover short 12 June 2024 (AAPL) $200 puts at……………$11.10
Net Proceeds:………………………….………….…...............................$9.90
Profit: $9.90 - $9.00 = $0.90
(12 X 100 X $.90) = $1,080 or 10.00% in 13 trading days.
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.
