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) March 2025 $190-$195 in-the-money vertical BULL CALL spread at $4.00
Opening Trade
3-5-2025
expiration date: March 21, 2025
Portfolio weighting: 10%
Number of Contracts = 25 contracts
Tactical trade right here in Amazon.com, Inc. (AMZN).
Stock is down from $245 in the short-term because of the tariffs clearly targeting Governor Justin Trudeau.
We have technical resistance at $198, and we are executing a bull call spread with an upper strike price of $195.
More aggressive traders can move up their strike price to $200.
Any quick bounce should be a catalyst to take profits.
Don’t pay more than $4.15
Here are the specific trades you need to execute this position:
Buy to Open 25 March 2025 (AMZN) $190 calls at…………$17.90
Sell to short 25 March 2025 (AMZN) $195 calls at………….$13.90
Net Cost:……………………..…….……….........................…….....$4.00
Potential Profit: $5 - $4 = $1
(25 X 100 X $1) = $2,500 or 25.00% in 16 days
If you are uncertain about how to execute a bear put 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.
