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 - (GILD) - BUY
BUY the Gilead Sciences (GILD) July, 2017 $62-$65 in-the-money vertical bull call spread at $2.57 or best
Opening Trade
6-21-2017
expiration date: July 21, 2017
Portfolio weighting: 10%
Number of Contracts = 39 contracts
It is clear now that biotech is the new FANG and is about to deliver FANG like results.
The market has been begging for a major rotation, and this is it. It is just what traders and investors were begging for in an otherwise dreadfully slow summer market.
I am therefore picking up the Gilead Sciences (GILD) July, 2017 $62-$65 in-the-money vertical bull call spread at $2.57 or best.
As long as the shares stay above $65 by the July 21 expiration day in 21 trading days we should clock a handy 16.73% profit on the position.
Gilead Sciences is the world's preeminent maker of anti hepatitis drugs and is one of my long-term favorites.
It is also enticing that the (GILD) charts have just forged a major long term bottom.
If you can't do options then buy the IShares NASDAQ Biotechnology ETF (IBB), which is on fire, and should rise to $400 shortly.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute a Vertical Bull Call Spread by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/.
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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 with only 13 days 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.
Here are the specific trades you need to execute this position:
Buy 39 July, 2017 (GILD) $62 calls at.....................$5.40
Sell short 39 July, 2017 (GILD) $65 calls at........................$2.83
Net Cost:................................................................$2.57
Potential Profit: $3.00 - $2.57 = $0.43
(39 X 100 X $0.43) = $1,677 or 16.73% profit in 21 trading days.
