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.
Trade Alert - (V) – BUY
Buy the Visa (V) June 2022 $150-$160 in-the-money vertical Bull Call spread at $8.70 or best
Opening Trade
5-16-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
If you don’t do options, buy the stock. My target for (V) over the next year is $250, up 32%.
With the Volatility Index (VIX) still at $29 today, it’s time to start loading the boat with risk again. Today, you can add call spreads that are so far in the money that it is almost impossible to lose money. We also have the Mad Hedge Market Timing index at the “screaming buy” level of 12.
You would need a crash of Biblical proportions, on the scale of the 1987 crash, which the current state of the economy doesn’t justify.
I am therefore buying the Visa (V) June 2022 $150-$160 in-the-money vertical Bull Call spread at $8.70 or best
Don’t pay more than $9.20 or you’ll be chasing.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.
Visa is the largest credit card processor in the US, followed by Master Card (MA) and American Express (AXP). It is a pure play on inflation as high prices feed straight into higher credit card fees. It also benefits enormously from the digitization of the economy where an increasing share of the economy is transacted online. (V) is one of the world’s most valuable companies.
This is a bet that Visa (V) will not fall below $160 by the June 17 options expiration day in 24 trading days.
Here are the specific trades you need to execute this position:
Buy 12 June 2022 (V) $150 calls at………….………$49.00
Sell short 12 June 2022 (V) $160 calls at………....$40.30
Net Cost:……………………..…….………..………….….....$8.70
Potential Profit: $10.00 - $8.70 = $1.30
(12 X 100 X $1.30) = $1,560 or 14.94% in 24 trading 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.
