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 Meta Platforms, Inc. (META) July 2022 $150-$155 in-the-money vertical BULL CALL spread at $4.00
Opening Trade
7-6-2022
expiration date: July 15, 2022
Portfolio weighting: 10%
Number of Contracts = 25 contracts
This is a tactical trade in personal data selling company Meta Platforms, Inc. (META).
I won’t say this is one of the best tech names out there because Meta Platforms, Inc. (META) isn’t.
However, I do like the technical setup as we have a clear signal from the Nasdaq that “bad news is good news” as the market starts to price in a global recession.
This means we can’t just allow our put spread in ARKK to be open alone and we need to hedge by executing a call spread.
I am not a fan of the company, but I do believe that the fresh Nasdaq dynamics has set it up to benefit in the next 9 days to the July 15th expiration as we have sightings of dip buyers entering the market.
Aggressive traders can roll up strikes of calls to $151-$156 or $152-$157.
Do not buy this stock for the long term.
Here are the specific trades you need to execute this position:
Buy 25 July 2022 (META) $150 calls at………….………$18.10
Sell short 25 July 2022 (META) $155 calls at………….$14.10
Net Cost:……………………..….............….….……..…….....$4.00
Potential Profit: $5-$4 = $1.00
(1 X 100 X $25) = $2,500 or 25.00% in 9 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.
