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.
Trade Alert - (BLK) – BUY
Buy the Blackrock (BLK) October 2021 $770-$790 vertical bull call spread at $16.00 or best
Opening Trade
9-21-2021
expiration date: October 15, 2021
Portfolio weighting: 10%
Number of Contracts = 6 contracts
If you can’t do options, buy the stock on the next big dip. I expect Blackrock (BLK) to double in the coming years.
Blackrock is the world’s largest fund manager, with an astounding $9 trillion in assets under management, is managed by my old friend Larry Fink.
Originally a bond fund manager, it is now involved in every corner of the financial markets, even bitcoin. I have watched it grow from a niche firm to the dominant player since 1988.
Blackrock is one of the big three managers in addition to Vanguard and State Street. CEO Larry Fink is one of the smartest people in the business. He has built the perfect money-making machine.
And here is the play. If stocks are going to rise for the next decade, so will Blackrock’s fee income. And as it gathers more assets in a rising market, there is a leveraged hockey stick effect on earnings.
In addition, with a 31% implied volatility in the options market compared to 19% for the S&P 500, this is a very attractive spread to add, with only an 18-trading day view to the October 15 options expiration.
I am therefore buying the Blackrock (BLK) October 2021 $770-$790 vertical bull call spread at $16.00 or best
Don’t pay more than $17.50 or you’ll be chasing.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done cancel your order and increase your bid by 20 cents with a second order.
This is a bet that Blackrock (BLK)will not trade below $790 by the October 15 option expiration day in 18 trading days.
Here are the specific trades you need to execute this position:
Buy 6 October 2021 (BLK) $770 calls at………....….………$86.00
Sell short 6 October 2021 (BLK) $790 calls at…………....$70.00
Net Cost:………..…….…….........……………....………….….....$16.00
Potential Profit: $20.00 - $16.00 = $4.00
(6 X 100 X $4.00) = $2,400 or 25.00% in 18 trading 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.
