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) December 2024 $515-$520 in-the-money vertical BULL CALL spread at $4.00
Opening Trade
11-6-2024
expiration date: December 20, 2024
Portfolio weighting: 10%
Number of Contracts = 25 contracts
The path is clear after the election, and the U.S. economy is still chugging along.
I am executing a bull call spread in META that the underlying stock will not dip below $520 by December’s expiration.
I took profits in a similar trade earlier this year, and with the U.S. election out of the way, the price action suggests the new administration will prioritize economic expansion and lower corporate tax.
META is an AI stock, which should get us over the line here.
Don’t pay more than $4.15
Here are the specific trades you need to execute this position:
Buy to Open 25 December 2024 (META) $515 calls at………….………$60.25
Sell to short 25 December 2024 (META) $520 calls at………….........$56.25
Net Cost:……………………..…….………..…….........................................$4.00
Potential Profit: $5 - $4 = $1
(25 X 100 X $1) = $2,500 or 25% in 44 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.