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 ) March 2023 $200-$205 in-the-money vertical BEAR PUT spread at $4.50
Opening Trade
3-7-2023
expiration date: March 17, 2023
Portfolio weighting: 10%
Number of Contracts = 22 contracts
I am executing a trade that underlying shares of META will stay below $200 in the next 10 days.
Fed Chairman Jerome Powell just said he expects short-term rates to stay higher for longer.
This isn’t great in the short-run for tech stocks and I am willing to initiate a 10-day bearish bear put spread in social media company META.
Here are the specific trades you need to execute this position:
Buy 22 March 2023 (META) $205 puts at………….………$19.25
Sell short 22 March 2023 (META) $200 puts at………….$14.75
Net Cost:……………………..…….……….....................…….....$4.50
Potential Profit: $5- $4.50 = $.50
(22 X 100 X $.50) = $1,100 or 11.11% in 10 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.
