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) April 2024 $39-$42 in-the-money vertical Bull Call debit spread at $2.60 or best
Opening Trade
3-26-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 40 contracts
I believe that there is a major rotation in the market underway, out of technology stocks that have been leading all year into commodity stocks. We have already seen major upside breakouts in gold and silver and copper is jumping on the bandwagon.
Stock players buy the (WPM) shares, which probably have a double in them over the next two years.
With the world looking for a “safe” trade, it is time to pour into precious metals.
I am therefore buying the Wheaton Precious Metals (WPM) April 2024 $39-$42 in-the-money vertical Bull Call spread at $2.60 or best.
Don’t pay more than $2.75 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.
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 increase production next year by 40% from 1.3 million to 1.8 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.
This is a bet that the Wheaton Precious Metals (WPM) will not fall below $42 by the April 19 option expiration day in 14 trading days.
Here are the specific trades you need to exit this position:
Buy 40 April 2024 (WPM) $39 calls at………….…….…$6.00
Sell short 40 April 2024 (WPM) $42 calls at…………..$3.40
Net Cost:……………………..…….………..………….….........$2.60
Potential Profit: $3.00 - $2.60 = $0.40
(40 X 100 X $0..40) = $1,600 or 15.38% in 12 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.
