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 - NVIDIA Corporation (NVDA) – BUY
BUY NVIDIA Corporation (NVDA) August 2022 $165 - $170 in-the-money vertical BULL CALL spread at $3.80
Opening Trade
8-8-2022
expiration date: August 19, 2022
Portfolio weighting: 10%
Number of Contracts = 25 contract
NVIDIA Corporation (NVDA) is one of the best chip stocks and I am willing to go in with a tactical 11-day time horizon betting that NVDA will stay above $170.
The stock is down this morning on a 2nd quarter revenue miss and margin miss.
Dip buyers have participated in the broader tech market.
I find this a favorable risk/reward entry point.
Long term, this is a great buy-and-hold stock.
Here are the specific trades you need to execute this position:
Buy 25 August 2022 (NVDA) $165 calls at………….………$17.40
Sell short 25 August 2022 (NVDA) $170 calls at………….$13.60
Net Cost:……………….................……..…….………....…….....$3.80
Potential Profit: $5 - $3.80 = $1.20
(25 X 100 X $1.20) = $3,000 or 31.58% in 11 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.
