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) April 2024 $440-$445 in-the-money vertical BULL CALL spread at $3.80
Opening Trade
3-11-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 25 contracts
Buying Meta (META) on the dip after shares pulled back by 5%.
The stock is down 4% right now and it has been almost impossible to find an entry point into one of the strongest performers in tech.
This stock should be one of the cornerstones of a tech portfolio and one of the leaders of generative AI.
Don’t spend more than $4.
Here are the specific trades you need to execute this position:
Buy to Open 25 April 2024 (META) $440 calls at………….………$52.00
Sell to short 25 April 2024 (META) $445 calls at……….........….$48.20
Net Cost:……………………..……...………..…….................................$3.80
Potential Profit: $5 - $3.80 = $1.20
(25 X 100 X $1.20) = $3,000 or 31.58% in 39 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.
