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 - Dell Technologies Inc. (DELL) – BUY
Buy Dell Technologies Inc. (DELL) February 2025 $99-$104 in-the-money vertical BULL CALL spread at $4.20
Opening Trade
1-23-2025
expiration date: February 21, 2025
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Tactical trade right here in Dell Technologies Inc. (DELL). AI has been a hot trade and I will take this mini pullback to execute a bull call spread.
More aggressive traders should raise their strike prices to $105 or $106.
Don’t pay more than $4.30
Here are the specific trades you need to execute this position:
Buy to Open 24 February 2025 (DELL) $99 calls at…………...$16.40
Sell to short 24 February 2025 (DELL) $104 calls at….……….$12.20
Net Cost:……………………..…….………..……................................$4.20
Potential Profit: $5 - $4.20 = $0.80
(24 X 100 X $0.80) = $1,920 or 19.05% in 29 days
If you are uncertain about 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.
