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 - (C) - BUY
BUY the Citigroup (C) June, 2018 $60-$65 in-the-money vertical bull call spread at $4.25 or best
Opening Trade
4-10-2018
expiration date: June 15, 2018
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Citigroup shares are about to execute a "Golden Cross" on the charts whereby the 200-day moving average pierces to 50-day moving average on the upside.
Providing the impetus for the breakout will be Citigroup's Q1, 2018 earnings announcement on Friday, April 13, which are expected to grow by more than 25%. This will be one of the strongest reports in a decade.
Therefore I am buying the Citigroup (C) June, 2018 $60-$65 in-the-money vertical bull call spread at?$4.25 or best
This is a bet that (C) will not trade below $65.00 by the June 15 option expiration in 49 trading days.
If you can't trade options, just buy the stock outright for a quick bounce.
Don't pay more than?$4.50 for this position or you'll be chasing.
Here are the specific trades you need to execute this position:
Buy 23 June 2018 (C) $60 calls at..............$11.00
Sell short 23 June 2018 (C) $65 calls at.......$6.75
Net Cost:....................................................
Potential Profit: $5.00 - $4.25 = $0.75
(23 X 100 X $0.75) = $1,725 or 17.64% in 49 trading days.
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
You must be logged into your account to view the video.
Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
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 close to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.