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 - Meta Platforms, Inc. (META) – BUY
BUY the Meta Platforms, Inc. (META) January 2023 $140-$145 in-the-money vertical BEAR PUT spread at $4.50
Opening Trade
12-14-2022
expiration date: January 20, 2023
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This is a tactical trade in personal data re-selling company Meta Platforms, Inc. (META) that META will not rise above $140 in the next 37 days.
I am fading this big pop in META shares.
The big CPI beat or can I call it that – 7.1% is still awfully high.
Imagine if the Fed pivoted now and cut rates, oil would blast to $150 and silver would explode to $30 in a blink of an eye.
META as a standalone is a terrible company at this point with a CEO that can’t get fired. Their cash cow Facebook and Instagram are being neglected.
The CEO's insistence that META bets the farm on his pet project the metaverse ensures this stock is a sell-the-rallies type of stock for traders for the foreseeable future.
I believe this is a good entry point to sell META shares in the short term and this is how I am playing it.
Here are the specific trades you need to execute this position:
Buy 22 January 2023 (META) $145 puts at………….………$23.65
Sell short 22 January 2023 (META) $140 puts at………….$19.15
Net Cost:……………………..…….……….......................…….....$4.50
Potential Profit: $5 - $4.50= $.50
(22 X 100 X $.50) = $1,100 or 11.11% in 37 days
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.
