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 (JPM) February 2022 $140-$150 in-the-money vertical Bull Call spread at $8.50 or best
Trade Date: 1-14-2022
Expiration Date: February 18, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
If you don’t do options, buy the stock. My target for (JPM) this year is $200, up 32%.
I told you I’d be back in this name.
JP Morgan shares usually sell off on great earnings, and today is no exception.
The company announced record profits, but the stock sold off 6%. Loan growth is booming, interest rates are rising, and default rates are plunging. Credit card growth was an impressive 8%. It doesn’t get any better than that.
Bank shares have been joined at the hip with interest rates for the past eight months, and I believe that both rates and bank shares have much higher to go. With $3.5 trillion in new government spending about to be approved, but not funded, it can’t go any other way.
I am therefore buying the JP Morgan (JPM) February 2022 $140-$150 in-the-money vertical Bull Call spread at $8.50 or best
Don’t pay more than $9.20 or you’ll be chasing.
(JPM) is the class act in the global banking sector, and CEO Jamie Diamond is the best CEO in the country.
I believe that massive government borrowing and spending will drive US interest rates up through the roof and the value of the US dollar (UUP) down. Banks love high interest rates because they vastly improve profit margins.
This is a bet that JP Morgan (JPM) will not fall below $150.00 by the February 18 option expiration day in 23 trading days.
Here are the specific trades you need to enter this position:
Buy 12 February 2022 (JPM) $140 calls at………….………$21.00
Sell short 12 February 2022 (JPM) $150 calls at………....$12.50
Net Cost:……………………..…….………..………….….....$8.50
Potential Profit: $10.00 - $8.50 = $1.50
(12 X 100 X $1.50) = $1,800 or 17.64% in 23 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.
