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) November 2022 $140-$145 in-the-money vertical Bear Put spread at $3.30
Opening Trade
10-13-2022
expiration date: November 18, 2022
Portfolio weighting: 10%
Number of Contracts = 30 contracts
After a wicked bounce from the intraday bottom because the .75% interest rate hike has been locked in, I will need to hedge my 2 previous positions after 2 aggressive bull call spreads and lock in those profits.
Therefore, I am shorting one of the worst tech stocks out there and that’s Facebook or Meta or whatever you want to call it. Yes, that company that just rolled out a $1,500 VR headset that nobody will buy.
Prospects look grim for this tech firm in the short-term and we have a short term resistance at $140.
This is a little bit of an aggressive trade, but it is justified after our first two bullish positions in PINS and ABNB were timed to perfection.
Here are the specific trades you need to execute this position:
Buy 30 November 2022 (META) $145 puts at…….....…….………$20.00
Sell short 30 November 2022 (META) $140 puts at…….....…….$16.70
Net Cost:………….............................…………..…….………..…….....$3.30
Potential Profit: $5-$3.3 = $1.70
(30 X 100 X $1.70) = $5,100 or 51.51% in 38 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.
