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 - (JPM) – BUY
BUY the JP Morgan Chase (JPM) August 2024 $215-$225 in-the-money vertical Bear Put debit spread at $8.70 or best
Opening Trade
8-8-2024
expiration date: August 16, 2024
Number of Contracts = 12 contracts
With the Volatility Index ($VIX) at a ballistic 26% front month options spreads are still in play.
I hate to make money at someone else’s expense. Buy hey, a buck is a buck. In karate school in Japan, they always teach you to kick a man when he is down because that is when they are least likely to hit you back.
It is in that mean spirit that I am taking advantage of the current stock market crash to dive in on JP Morgan (JPM), which has cratered an eye-popping 17% in a week.
I am therefore buying the JP Morgan Chase (JPM) August 2024 $215-$225 in-the-money vertical Bear Put debit spread at $8.70 or best.
Don’t pay more than $9.40 or you’ll be chasing on a risk/reward basis.
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 increase your bid by 10 cents with a second order.
To learn more about the company please visit their website at https://www.jpmorganchase.com
This is a bet that JP Morgan Chase (JPM) will not rise above $215 by the August 16 option expiration in 5 days.
Here are the specific trades you need to execute this position:
Buy 12 August 2024 (JPM) $225 puts at………….………$22.00
Sell short 12 August 2024 (JPM) $215 puts at…….……$13.30
Net Cost:………………………….………..…..........................$8.70
Potential Profit: $10.00 - $8.70 = $1.30
(12 X 100 X $1.30) = $1,560 or 14.94% in 5 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.
