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 - Microsoft Corporation (MSFT) – BUY
Buy Microsoft Corporation (MSFT) August 2023 $317.50-$322.50 in-the-money vertical BULL CALL spread at $4.00
Opening Trade
7-31-2023
expiration date: August 18, 2023
Portfolio weighting: 10%
Number of Contracts = 25 contracts
This is a short-term aggressively bullish trade on AI firm Microsoft (MSFT) that MSFT will stay above $322.50 in the next 18 days.
MSFT is down today and I’m using this dip and the technical support at $322.50 to buy the dip.
Traders and Investors should be buying the dip on any good tech stock, especially the AI stocks.
Rarely do we get such an opportunity to buy into the best of breed and the risk rewards are quite good as the Nasdaq has had a few days to digest the bullish moves in its index.
Another AI stock that is also ripe for a trade is Alphabet (GOOGL).
Microsoft earnings was priced to a point where traders expected an AI revolution right here and now, but many know that this AI revenue stream will take time to develop.
The stock has pulled back from $370 per share and today I am executing a short-term tactical bet in underlying MSFT shares.
Don’t pay more than $4.15.
Here are the specific trades you need to execute this position:
Buy 25 August 2023 (MSFT) $317.50 calls at…………..………$18.95
Sell short 25 August 2023 (MSFT) $322.50 calls at………….$14.95
Net Cost:……………………..…….…........................……..…….....$4.00
Potential Profit: $5 - $4.00 = $1.00
(25 X 100 X $1.00) = $2,500 or 25.00% in 18 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.
