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.
Tech Alert - Lyft, Inc. (LYFT) – BUY
Buy Lyft, Inc. (LYFT) February 2023 $12-$15 in-the-money vertical BULL CALL spread at $2.50
Opening Trade
2-3-2023
expiration date: February 17, 2023
Portfolio weighting: 10%
Number of Contracts = 39 contracts
This is a short-term mildly bullish trade on taxi tech company LYFT that LYFT will stay above $15 in the next 14 days.
We experienced a strong reversal in high beta tech yesterday and the Fed has given the green light to scoop up tech in droves.
Lyft has strong technical support around $15.50 and yesterday really feels like the end of the energy rally in the short term as we see evidence of a strong rotation into growth tech.
Get into it while the trade is on the table with Lyft. Tactical traders will be the ultimate winners of 2023.
This trade makes sense up to $2.60.
Here are the specific trades you need to execute this position:
Buy 39 February 2023 (LYFT) $12 calls at………….………$5.30
Sell short 39 February 2023 (LYFT) $15 calls at………….$2.80
Net Cost:……………………..…….……..................…..…….....$2.50
Potential Profit: $3 - $2.50 = $.50
(39 X 100 X $.50) = $1,950 or 20.00% in 14 days
If you are uncertain on 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.
