As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.
Trade Alert - (AAPL)
Buy the Apple (AAPL) November, 2014 $87.50-$92.50 in-the-money vertical bull call spread at $4.25 or best
Opening Trade
10-17-2014
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts= 24 contracts
You can but this spread anywhere in the $4.25-$4.50 range and hit a home run.
There is a real sweet spot to pick up Apple call spreads here. I have picked strike prices that are well under the July low for the stock. And now consumers are going into the Christmas selling season with an extra $50 billion in their pockets, thanks to the collapse of gasoline prices!
Keep in mind that the options market is highly illiquid now, so don?t hold me to these prices. They are ballpark estimates, at best.
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.
Here are the specific trades you need to execute this position:
Buy 24 November, 2014 (AAPL) $87.50 calls at?????$11.15
Sell short 24 November, 2014 (AAPL) $92.50 calls at..??.$6.90
Net Cost:??????????????????.....$4.25
Potential Profit: $5.00 - $4.25 = $0.75
(24 X 100 X $0.75) = $1,800 or 1.80%% profit for the notional $100,000 model portfolio.
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