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 - (DIS) - BUY
BUY the Walt Disney Corp. (DIS) March 2021 $170-$180 in-the-money vertical Bull Call spread at $9.10 or best
Opening Trade
3-1-2019
expiration date: March 19, 2021
Portfolio weighting: 10%
Number of Contracts = 12 contracts
If you can’t do options, buy the stock. I think (DIS) could hit $300 this year, up 52%.
As cloudy as the near-term outlook is for Walt Disney, I love it for the long term. It is the perfect end of the pandemic play, with huge exposure to their theme parkers, hotels, and cruise line worldwide.
So do a ton of other portfolio managers who are willing to take some short term heat in order to get into one of the best managed companies in America with some of the greatest digital assets.
I am therefore buying the Walt Disney Corp. (DIS) March 2021 $170-$180 in-the-money vertical Bull Call spread at $9.10 or best.
Don’t pay more than $9.40 or you’ll be chasing.
Only use a limit order. 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 raise your bid by ten cents with a second order.
This is a bet that Walt Disney shares will NOT fall below $180 by the March 19 option expiration date in 14 trading days.
Here are the specific trades you need to execute this position:
Buy 12 March 2021 (DIS) $170 calls at…….….......…$25.00
Sell short 12 March 2021 (DIS) $180 calls at…....….$15.90
Net Cost:………………………….………….................….....$9.10
Potential Profit: $10.00 - $9.10 = $0.90
(12 X 100 X $0.90) = $1,080 or 9.89% in 14 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.
