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 - Pinterest, Inc. (PINS) – BUY
BUY Pinterest, Inc. (PINS) October 2022 $17.50-$20.50 in-the-money vertical BULL CALL spread at $2.40
Opening Trade
9-28-2022
expiration date: October 21, 2022
Portfolio weighting: 10%
Number of Contracts = 42 contracts
This is a 23-trade wagering that Pinterest (PINS) will stay above $20.50.
I love every tech stock that vulture fund Elliot Management invests in, and they recently secured the largest stake in this social media company.
We are also majorly oversold in the short term.
The risk/reward for a bear-market rally in the short term is favorable, therefore, I am executing a bullish position in PINS.
Here are the specific trades you need to execute this position:
Buy 42 October 2022 (PINS) $17.50 calls at………….….……$6.00
Sell short 42 October 2022 (PINS) $20.50 calls at………….$3.60
Net Cost:…………………….......................…….………..…….....$2.40
Potential Profit: $3 - $2.40 = $.60
(42 X 100 X $.60) = $2,520 or 25.00% in 23 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.
