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.
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Trade Alert - (AMZN) - STOP LOSS
SELL the Amazon (AMZN) November, 2016 $720-$750 in-the-money vertical bull call spread at $26.20 or best
Closing Trade
11-9-2016
Expiration Date: November 18, 2016
Portfolio Weighting: 10%
Number of Contracts = 4 contracts
If you have (AMZN) stock, sell it. I want to go flat until the dust settles.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of OptionsHouse.
Please keep in mind these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.
Paid subscribers, be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual investors need every advantage they can get.
If you are uncertain about how to execute this options spread, please watch my training video ?How to Execute a Bull Call Spread?
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 with only 7 days until expiration.
Here Are the Specific Trades You Need to Execute This Position:
SELL 4 November, 2016 (AMZN) $720 calls at????.??$46.30
Buy to cover short 4 November, 2016 (AMZN) $750 calls at...$20.10
Net Proceeds:?????????????????........$26.20
Loss: $26.20 - $27.47 = -$1.27
(4 X 100 X $1.27) = -$508 or -4.62%
