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) March 2025 $235-$245 in-the-money vertical Bull Call spread at $9.00 or best
Opening Trade
2-24-2025
expiration date: March 21, 2025
Portfolio weighting: 10%
Number of Contracts = 12 contracts
JP Morgan shares have fallen by a horrific 12% in the last week, setting up a rare opening. The selloff was prompted by news that the administration will continue with Biden’s tough antitrust regulations, putting the kibosh on a big potential source of earnings this year.
However, the banking business still looks great going forward and institutions are still in accumulation mode in this name.
Financials are back!
(JPM) is the top commercial bank in the US, with a market capitalization of $598 billion. They are also one of the most profitable. Yet they sport a price-earnings multiple of only 15X. They have far and away one of the most sophisticated and conservative risk control procedures out there.
We only have a short 19 trading days to expiration in the position so it's worth a shot.
I am therefore buying the JP Morgan Chase (JPM) March 2025 $235-$245 in-the-money vertical Bull Call spread at $9.00 or best.
Don’t pay more than $9.40 or you’ll be chasing.
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.
If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $9.00, $9.10, $9.20, $9.30, and $9.40. You should get done on some or all of these.
This is a bet that JP Morgan will not fall below $245 by the March 21 option expiration day in 19 trading days. For more about (JPM) please click here for their website at https://www.jpmorganchase.com
Here are the specific trades you need to execute this position:
Buy 12 March 2025 (JPM) $235 calls at………….…...……$28.00
Sell short 12 March 2025 (JPM) $245 calls at…………....$19.00
Net Cost:……………………..…….………..………….…...............$9.00
Potential Profit: $10.00 - $9.00 = $1.00
(12 X 100 X $1.00) = $1,200 or 11.11% in 19 trading 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.
