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) November 2024 $195-$205 in-the-money vertical Bull Call spread at $8.80 or best
Opening Trade
10-11-2024
expiration date: November 15, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
JP Morgan’s blockbuster earnings report this morning has blasted the stock to a new all-time high, dragging the rest of the financial sector with it.
Financials are back!
Increasingly, investors are not bothering to wait until after the election to commit the rest of their capital, they are buying stocks now. They don’t want to be left behind by the monster post-election rally. The October selloff proved to be only a 4.5% drawdown at the beginning of the month.
(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 price earnings multiple of only 11.7X. They have, far and away, one of the most sophisticated and conservative risk control procedures out there.
The Fed will certainly raise interest rates by 25 basis this November and December because it is already in the mail. I did a LEAPS on (JPM) last year and followers earned a handy 100% return in nine months. I like returning to wells that refresh me.
After that, there will be no interest rate rises for a decade. The cuts will start in That’s when the economic data catch up with the reality that is happening right now, which is hugely deflationary.
I am therefore buying the JP Morgan Chase (JPM) November 2024 $195-$205 in-the-money vertical Bull Call spread at $8.80 or best.
Don’t pay more than $9.30 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.
This is a bet that JP Morgan will not fall below $205 by the November 15 option expiration day in 25 trading days.
For more about (JPM), please click here for their website.
Here are the specific trades you need to execute this position:
Buy 12 November 2024 (JPM) $195 calls at………….…....……$30.00
Sell short 12 November 2024 (JPM) $205 calls at……….…....$21.20
Net Cost:……………………..…….………..………….….....................$8.80
Potential Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 13.64% in 25 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.
