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 - Amazon.com, Inc. (AMZN) – BUY
Buy Amazon.com, Inc. (AMZN) February 2023 $96-$101 in-the-money vertical BULL CALL spread at $4.00
Opening Trade
2-3-2023
expiration date: February 17, 2023
Portfolio weighting: 10%
Number of Contracts = 25 contracts
AMZN is down 6% this morning on a poor earnings report this morning and it's time to act. We are purchasing the dip.
This is a short-term mildly bullish trade on eCommerce Company Amazon (AMZN) that AMZN will stay above $101 in the next 14 days.
We experienced a strong reversal in high beta tech yesterday and the Fed has given the green light to scoop up tech in droves.
We are witnessing strong evidence of a rotation into growth tech.
Get into it while the trade is on the table with AMZN. Tactical traders will be the ultimate winners of 2023.
This trade is quite aggressive so I would recommend traders with low threshold to risk to stay on the sidelines or move strike prices down to $95-$100 which would cost around $4.30 and cost $9,890 for 23 contracts.
For the current AMZN call spread trade with strike prices of $96-$101, don’t pay more than $4.15.
Here are the specific trades you need to execute this position:
Buy 25 February 2023 (AMZN) $96 calls at………….………$10.60
Sell short 25 February 2023 (AMZN) $101 calls at………….$6.60
Net Cost:……………………..…….……….......................…….....$4.00
Potential Profit: $5 - $4 = $1.00
(25 X 100 X $1.00) = $2,500 or 25.00% in 14 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.
