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) June 2022 $162.50 - $172.50 in-the-money vertical BULL CALL spread at $8.55
Opening Trade
6-2-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contract
NVIDIA Corporation (NVDA) is one of the best chip stocks and I am willing to go in with a tactical 15-day short-term trade projecting that NVDA shares will stay above $172.50 which is about 10% from current levels on the underlying stock.
This is also done to protect our short positions which are getting smoked today. The bear market rally has legs even with Chase bank CEO Jamie Dimon saying there is a “hurricane” about to hit the economy.
Long term, this is a great buy-and-hold stock.
Here are the specific trades you need to execute this position:
Buy 12 June 2022 (NVDA) $162.50 calls at………….………$28.55
Sell short 12 June 2022 (NVDA) $172.50 calls at………….$20.00
Net Cost:……………………..…….………..….....................….....$8.55
Potential Profit: $10 - $8.55 = $1.45
(12 X 100 X $1.45) = $1,740 or 16.96% in 15 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.
