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 - (WPM) – BUY
BUY the Wheaton Precious Metals (WPM) January 2021 $39-$41 in-the-money vertical Bull Call spread at $1.80 or best
Opening Trade
1-4-2021
expiration date: January 15, 2021
Portfolio weighting: 10%
Number of Contracts = 56 contracts
Stock players buy the (WPM) shares which probably have a double in them over the next two years.
With the massive 10% collapse in Bitcoin this morning, it is time to pour into precious metals. The Bitcoin bubble had been stealing their thunder until now and that seems to have gone into abeyance.
Wheaton Precious Metals Corp. is a multinational precious metals dividend streaming company, also known as a royalty trust. It indirectly produces over 26 million ounces a year via short term options and contracts with mining companies all over the world, including Mexico, Portugal, The US, Chile, and Peru. It is, in effect, the best leveraged play on silver out there.
To learn more about the operation of Wheaton Precious Metals Corp, please visit their site by clicking here.
Silver is a great industrial play and if you believe in the global economic recovery, you want to be loading the boat.
It is used in electronics and solar panels, which are about to get a big boost from the new president. Every Tesla requires 20 pounds of silver, which will more than double production next year from 500,000 to 1.1 million units.
And yes, it is still used for jewelry, which gets bought more during economic recoveries.
Silver tends to lag gold, which has already started to move. When it plays catch-up, it rises twice as fast as gold.
I am therefore buying the Wheaton Precious Metals (WPM) January 2021 $39-$41 in-the-money vertical Bull Call spread at $1.80 or best
Don’t pay more than $1.90 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 5 cents with a second order.
This is a bet that the Wheaton Precious Metals (WPM) will not fall below $41 by the January 15 option expiration day in 9 trading days.
Here are the specific trades you need to execute this position:
Buy 56 January 2021 (WPM) $39 calls at………….….……$5.50
Sell short 56 January 2021 (WPM) $41 calls at…………..$3.70
Net Cost:……………........………..…….………..………….….....$1.80
Potential Profit: $2.00 - $1.80 = $0.20
(56 X 100 X $0.20) = $1,120 or 11.11% in 9 trading 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.
