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 - Salesforce, Inc. (CRM) – BUY
Buy Salesforce, Inc. (CRM) June 2023 $197.50-$202.50 in-the-money vertical BULL CALL spread at $4.20
Opening Trade
6-1-2023
expiration date: June 16, 2023
Portfolio weighting: 10%
Number of Contracts = 24 contracts
CRM or Salesforce saw sales and margins come in ahead of analyst estimates. Salesforce's data cloud business maintained its 20% sales growth seen in the first quarter.
But the company only reiterated its full-year sales outlook, calling out more cautious spending by customers on the earnings call.
Tech is on a run and the setup of a $4 trillion stimulus or federal debt package about to get rammed through Congress, AI mania, and tech stocks acting as a safe haven has bid up tech stocks to even higher highs.
Any large dip on premium tech names is an obvious buy the dip moment.
CRM isn’t Apple or Microtesla or whatever these 7 big tech plays are but they are still quite darn good.
More aggressive traders can move up strike prices to $205 to juice up the profit. Don’t pay more than $4.30.
Here are the specific trades you need to execute this position:
Buy 24 June 2023 (CRM) $197.50 calls at…….…….………$17.30
Sell short 24 June 2023 (CRM) $202.50 calsl at………….$13.10
Net Cost:……………………..…….……...................…..…….....$4.20
Potential Profit: $5 - $4.20 = $.80
(24 X 100 X $.80) = $1,920 or 19.05% in 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.