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.
Trade Alert - (NVDA) – BUY
BUY the NVIDIA (NVDA) July 2022 $120-$130 in-the-money vertical Bull Call spread at $8.40 or best
Opening Trade
6-15-2022
expiration date: expiration date: July 15, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
If you don’t do options, buy the stock. My target for (NVDA) over the next five years is $1,000, up 455%.
With the Volatility Index (VIX) at $30 today, it’s time to start loading the boat with risk again. You can add call spreads that are so far in the money that it is almost impossible to lose money.
I am therefore buying the NVIDIA (NVDA) July 2022 $120-$130 in-the-money vertical Bull Call spread at $8.40 or best.
Don’t pay more than $9.20 or you’ll be chasing.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.
NVIDIA is the preeminent manufacturer of high-end graphics cards. You probably have their Geoforce card in your computer. They are used for high-end PCs, artificial intelligence, and bitcoin mining.
This is a bet that NVDIA (NVDA) will not fall below $130 by the July 15 options expiration day in 21 trading days, a decline of 27%.
For more about (NVDA) please click here for their website at https://www.nvidia.com/en-us/
Here are the specific trades you need to execute this position:
Buy 12 July 2022 (NVDA) $120 calls at………….………$41.00
Sell short 12 July 2022 (NVDA) $130 calls at………....$32.60
Net Cost:……………………........…….………..………….….....$8.40
Potential Profit: $10.00 - $8.40 = $1.60
(12 X 100 X $1.60) = $1,920 or 17.64% in 21 trading 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.
