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 - (AAPL) ???SELL- STOP LOSS
SELL the Apple (AAPL)??February, 2018 $150-$155 in-the-money vertical BULL CALL spread at $3.90 or best
Closing Trade
2-9-2018
expiration date:??February 16, 2018
Portfolio weighting: 10%
Number of Contracts = 24 contracts
As much as I love Apple, the greatest value stock of all time, I am just not confident over what the share will do over the next five trading days going into the??February 16??options expirations.
I am therefore selling the Apple (AAPL)??February, 2018 $150-$155 in-the-money vertical BULL CALL spread at $3.90 or best.
If you own Apple shares outright, keep them, as I am certain the shares are bottoming here.
I???ll soon be adding another Apple position with a much longer expiration date and lower strikes
Here are the specific trades you need to exit this position:
Buy??24 February 2018??(AAPL) $150 calls at??????.?????????$8.50
Sell short??24 February 2018??(AAPL) $155 calls at?????????.$4.60
Net Proceeds:??????????????????????????????.????????????..??????.???
Loss: $4.20 - $3.90 = $0.30
(24 X 100 X $0.30) = $720 or 7.69%.
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.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
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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.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
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 done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.
