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 - Oracle Corporation (ORCL) – BUY
Buy Oracle Corporation (ORCL) December 2023 $100-$105 in-the-money vertical BULL CALL spread at $4.40
Opening Trade
11-14-2023
expiration date: December 15, 2023
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This is a mildly bullish trade in enterprise tech company Oracle that the underlying stock will stay above $105 by December 15th expiration.
A "more aggressive pivot" to cloud-based services will help drive sales growth for Oracle. Earnings’ commentary from various chip companies is telling investors that AI will catapult companies like ORCL.
Oracle has turned from a stale company to an exciting AI company and enterprise tech will benefit greatly in the next year with massive investments into data centers and the software surrounding it.
ORCL will participate in the yearend rally and this is one way to play it.
Rates are injecting a massive tailwind into tech stocks in the short term and this could be the catalyst to the Santa Claus rally.
Don’t pay more than $4.50.
Here are the specific trades you need to execute this position:
Buy 22 December 2023 (ORCL) $100 calls at………….………$16.65
Sell short 22 December 2023 (ORCL) $105 calls at………….$12.25
Net Cost:…………………........................…..…….………..…….....$4.40
Potential Profit: $5 - $4.40 = $0.60
(22 X 100 X $0.60) = $1,320 or 13.63% in 32 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.
