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) June 2024 $440-$445 in-the-money vertical BULL CALL spread at $4.10
Opening Trade
5-15-2024
expiration date: June 21, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Back into Meta (META) after a series of dovish inflationary data points and Jerome Powell paring back the balance sheet runoff.
I took profits in a similar trade with the April expiration and funnily enough the same strike prices.
META is an AI stock which should get us over the line here.
Don’t pay more than $4.20
Here are the specific trades you need to execute this position:
Buy to Open 24 June 2024 (META) $440 calls at…...…….………$41.90
Sell to short 24 June 2024 (META) $445 calls at……….........….$37.80
Net Cost:……………………..…….………..……...................................$4.10
Potential Profit: $5 - $4.10 = $.90
(24 X 100 X $.90) = $2,160 or 21.95% in 37 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.