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) October 2022 $125 - $130 in-the-money vertical BULL CALL spread at $4.05
Opening Trade
10-3-2022
expiration date: October 21, 2022
Portfolio weighting: 10%
Number of Contracts = 24 contract
Bet that Apple will end Oct 21 above $130.
Bad news is priced into Apple in the short-term after they iced more iPhone production.
The Fed “pivot” narrative has picked up incrementally as Fed members are worried about a possible credit event at a European bank. This is very bullish short-term for tech stocks.
For more aggressive traders, move up the call strikes to $132 or $133.
This bull call spread is a bullish short-term bet that Apple won’t drop past $130 in the next 18 days.
Here are the specific trades you need to execute this position:
Buy 24 October 2022 (APPL) $125 calls at………….………$15.50
Sell short 24 October 2022 (APPL) $130 calls at………….$11.45
Net Cost:……………………..…….………..……........................$4.05
Potential Profit: $5 - $4.05 = $.95
(24 X 100 X $.95) = $2,280 or 23.46% 18 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.
