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 - Micron Technology, Inc. (MU) – BUY
Buy Micron Technology, Inc. (MU) September 2024 $90-$95 in-the-money vertical BULL CALL spread at $3.70
Opening Trade
8-23-2024
expiration date: September 20, 2024
Portfolio weighting: 10%
Number of Contracts = 27 contracts
Micron is another chip company at the heart of generative AI infrastructure and I am inclined on this small dip to execute a bull call spread on MU.
Federal Reserve Chair Jerome Powell sent a straightforward message to markets in a key speech on Friday, saying "the time has come" for the central bank to begin lowering interest rates.
This means buy chip stocks related to AI.
Don’t pay more than $3.87.
Here are the specific trades you need to execute this position:
Buy to Open 27 September 2024 (MU) $90 calls at………….………$14.80
Sell to short 27 September 2024 (MU) 95 calls at…….……............$11.10
Net Cost:……………………..…….………..……......................................$3.70
Potential Profit: $5 - $3.70 = $1.30
(27 X 100 X $1.30) = $3,510 or 35.14% in 28 days
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Spread” by clicking here at
http://www.madhedgefundtrader.com/ltt-vbpds/
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.