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 - (XOM) - BUY
Buy the ExxonMobil (XOM) April 2024 $100-$105 in-the-money vertical bull call debit spread at $4.45 or best
Opening Trade
3-15-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 25 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.
There is no better way to play an unfolding commodity boom than to buy ExxonMobil (XOM), America’s largest oil major. (XOM) also has an additional attraction in that its shares off a healthy 3.41% dividend.
The Middle Eastern war continues to percolate on, and we now have a new factor pushing oil up with Ukraine launching successful drone strikes on several Russian oil refineries. There will be more as soon as Congress gets off its ass and supplies Kiev with more weapons.
Therefore, I am buying the ExxonMobil (XOM) April 2024 $100-$105 in-the-money vertical bull call debit spread at $4.45 or best.
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.
Don’t pay more than $4.60 or you will be chasing.
If you don’t do options, buy the stock. I believe that (XOM) could see a major rally here.
This is a bet that the ExxonMobile (XOM) will not trade below $105.00 by the April 19 option expiration day in 20 trading days.
Here are the specific trades you need to execute this position:
Buy 25 April 2024 (XOM) $100 calls at…….…....…$12.00
Sell short 25 April 2024 (XOM) $105 calls at…..…..$7.55
Net Cost:………………………….……….…................……$4.45
Potential Profit: $5.00 - $4.45 = $0.55
(25 X 100 X $0.55) = $1,375, or 12.36% in 20 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.
