Trade Alert - (AAPL) November 10, 2015
As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Trade Alert - (AAPL)- BUY
BUY the Apple (AAPL) December, 2015 $105-$110 in-the-money vertical bull call debit spread at $4.27 or best
?RISK ON???????????????
Opening Trade
11-10-2015
expiration date: December 18, 2015
Portfolio weighting: 10%
Number of Contracts = 24 contracts
You can pay all the way up to $4.50 for this spread and it still makes sense. If you can't do options buy stock outright.?
A Credit Suisse report on weak channel checks is giving us a reasonable entry point for Apple this morning.
Chanel checks are research into the number of parts in the pipeline that have been ordered by Apple from third party suppliers. The report suggested that sales were not all they were cracked up to be.
I think every portfolio manager in the world is going to want Apple on their books for the year end book closing. All that is needed is to get through the November mini correction after October?s ballistic move.
We also have substantial support on the chart for Apple at the 50 day moving average at $113.72
My 2016 target for Apple is $150, as we run up to the iPhone 7 launch in a year. So I am in dip buying mode. This is a dip.
Everyone who has sold Apple because of channel checks ended up spending the rest of the year trying, but failing to buy it back. Even Credit Suisse has a $140 target for Apple.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of optionshouse.
If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Bull Call Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/
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.
Here are the specific trades you need to execute this position:
Buy 24 December, 2015 (AAPL) $105 calls at???...$13.00
Sell short 24 December, 2015 (AAPL) $110 calls at?..$8.73
Net Cost:???????????????????.?.....$4.27
Potential Profit: $5.00 - $4.27 = $0.73
(24 X 100 X $0.73) = $1,752 or 1.16% profit for the notional $100,000 portfolio.
