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) – SELL – TAKE PROFITS
SELL TAKE PROFITS Apple Inc. (AAPL) October 2022 $125 - $130 in-the-money vertical BULL CALL spread at $4.55
Closing Trade
10-11-2022
expiration date: October 21, 2022
Portfolio weighting: 10%
Number of Contracts = 24 contracts
This was a trade that iPhone maker Apple would end Oct 21 above $130 and I’m taking profits here as tech stocks have caught a downward spiral as scares from global macro risks rear their ugly head.
We were fortunate to catch one of the biggest 2-day bear market rallies in tech history, but reality has hit again as institutional traders have quickly taken profits as the backdrop to tech growth goes from bad to worse.
This is truly a trader’s environment as long-only funds have been obliterated. Take hedge fund Tiger Global’s long-only macro fund which is down 50% YTD.
Expect face-ripping bear market rallies with even more violent selloffs.
This is what happens when the biggest central bank in the world follows up the biggest policy mistake in history with aggressive interest rate hikes. Yikes! Grab your cowboy hat on this bucking bronco because it’ll be a wild rise folks.
Here are the specific trades you need to exit this position:
Sell to Close 24 October 2022 (APPL) $125 calls at………….………$14.90
Buy to Close 24 October 2022 (APPL) $130 calls at……........…….$10.35
Net Proceeds:……………………..…….………..……..............................$4.55
Profit: $4.55 - $4.05 = $.50
(24 X 100 X $.50) = $1,200 or 12.35%
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.
