Trade Alert - (MSTR) April 22, 2025

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 - (MSTR) - BUY

Buy the MicroStrategy (MSTR) May 2025 $220-$230 in-the-money vertical bull call debit spread at $8.80 or best

Opening Trade

4-22-2025

expiration date: May 16, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 12 contracts

Crypto has so far failed miserably as a safety and diversification play, with gold up 30% and Bitcoin down 30% at the lows. But the “Sell America” trade is gaining steam with a collapsing stock, bond, and US dollar markets, and money is now definitely moving into the crypto sector. It turned out that the real “Trump Trade” was a “Sell America” trade.

MicroStrategy is a highly leveraged long play on Bitcoin and at 70% implied volatility for its options.

Therefore, I am buying the MicroStrategy (MSTR) May 2025 $220-$230 in-the-money vertical bull call debit spread at $8.80 or best.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Do not pay more than $9.30 or you will be chasing. If you can’t get this done, raise your strike prices by $10.

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.

If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $8.80, $8.90, $9.00, $9.10, and $9.20. You should get done on some or all of these.

This is a bet that MicroStrategy will not fall below $230 by the May 16 option expiration in 18 trading days.

Here are the specific trades you need to execute this position:

Buy 12 May 2025 (MSTR) $220 calls at………………….….$102.00

Sell short 12 May 2025 (MSTR) $230 calls at……………….$93.20

Net cost:………………………….………………………....................$8.80

Potential Profit: $10.00 - $8.80 = $1.20

(12 X 100 X $1.20) = $1,440 or 13.64% in 18 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.

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