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 - Invesco QQQ Trust (QQQ) – BUY
BUY Invesco QQQ Trust (QQQ) April 2022 $375-380 in-the-money vertical BEAR PUT spread at $4.25
Opening Trade
3-22-2022
expiration date: April 14, 2022
Portfolio weighting: 10%
Number of Contracts = 24 contracts
This is a tactical trade in the Nasdaq index (QQQ) that the relief rally has run too far too fast with Fed Chair Jerome Powell indicating he is warming to more aggressive tightening and inflation roaring at home.
I’d be shocked if the Nasdaq continues in a straight line.
This trade is a bet that QQQ won’t rise above $375 in the next 23 days.
Here are the specific trades you need to execute this position:
Buy 24 April 2022 (QQQ) $380 puts at………….………$25.25
Sell short 24 April 2022 (QQQ) $375 puts at………….$21.00
Net Cost:……………………..….............….………..…….....$4.25
Potential Profit: $5 - $4.25 = $.75
(24 X 100 X $.75) = $1,800 or 17.65% 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.
