Trade Alert - (AAPL) TAKE PROFITS
SELL the Apple (AAPL) March, 2018 $140-$145 in-the-money vertical BULL CALL spread at $4.95 or best
Closing Trade
2-22-2018
expiration date: March 16, 2018
Portfolio weighting: 10%
Number of Contracts = 24 contracts
I'll take the home run here, the $22.77 run up in Apple's share price in 12 trading days.
At this point we have 97.56% of the maximum potential profit in the trade. The risk/reward of carrying on 16 more days until the March 16 expiration day is no longer favorable.
Better to free up cash here and roll into higher Apple strikes on the next dump, which seems to now be a regular event. If you have the shares outright keep them. Apple is on its way to $200 this year.
Closing this position brings us an impressive 19.27% profit in only 12 trading days. See what bravery in the face of fire will bring you?
Here are the specific trades you need to exit this position:
Sell 24 March 2018 (AAPL) $140 calls at.....................................................$33.30
Buy to cover short 24 March 2018 (AAPL) $145 calls at...............................$28.35
Net Proceeds:...............................................................................................$4.95
Profit: $4.95 - $4.15 = $0.80
(24 X 100 X $0.80) = $1,920 or 20.48% in 12 trading days.
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of interactive Brokers.
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Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
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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 close to expiration.
If you don't get it done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.
