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) October 2024 $100-$105 in-the-money vertical BULL CALL spread at $4.15
Opening Trade
9-20-2024
expiration date: October 18, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
This is a bull call spread in chip company Nvidia that bets the underlying stock will stay above $105 in the next 28 days.
The 50 point basis cut brings forward the tech rally and I am inclined to participate in it.
Nvidia experienced a sideways correction and with the economy forecasted to grow 3%, we are nowhere close to a recession.
I am bullish tech stocks and Nvidia in the short term.
Don’t pay more than $4.25.
Here are the specific trades you need to execute this position:
Buy to Open 24 October 2024 (NVDA) $100 calls at…..……$17.70
Sell to Short 24 October 2024 (NVDA) 105 calls at………….$13.55
Net Cost:……………………..…….………..…….............................$4.15
Potential Profit: $5 - $4.15 = $0.85
(24 X 100 X $0.85) = $2,040 or 20.48% in 28 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.
