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 - (BLOK) – BUY
BUY the Amplify Transformational Data Sharing ETF (BLOK) December 2021 $47-$50 in-the-money vertical Bull Call spread at $2.60
Opening Trade
11-29-2021
expiration date: December 17, 2021
Number of Contracts = 38 contract
Last time we used a microscopic dip in BLOK ETF to get a foot on the crypto ladder with lower strike prices and we accrued max profits.
However, we recently incurred a liquidity event when interest rates spiked higher causing a massive sell-off short-term in Bitcoin.
Bitcoin trended down to $54,000 which I didn’t expect.
Bitcoin is susceptible during liquidity events and most end up with the price down, another recent event was the Taproot Upgrade which actually made the technology better, but because the event meant that there is no next upgrade coming up soon, traders took profits.
I originally confided to you that $58,000 is a major support level for the digital gold and therefore, I am highly encouraged that Bitcoin is staging a major reversal today and 9% back up to my original line in the sand of $58,000.
I highly doubt that we will get another major spike in interest rates in the next 18 days which I should remind you was caused by the next Covid variant.
It’s highly likely that this new variant won’t be materially different from the previous variant and in our case, not enough to structurally change the bitcoin market or even the bond market since it is just about priced in at this point.
This offers us a buying opportunity as we barrel straight into the debt ceiling crisis of December which is highly inflationary.
This is the time to rejig your capital to expose yourself to crypto assets for the next 18 days to partake in this Santa Claus debt ceiling rally. Enjoy!
Today could be the short-term bottom for the next 18 days.
If you don’t do options, buy the stock. My target for (BLOK) this year is $70.
I am therefore buying the Amplify Transformational Data Sharing ETF (BLOK) December 17 $47-$50 in-the-money vertical Bull Call spread at $2.60.
My favorite crypto ETF is Amplify Transformational Data Sharing ETF (BLOK) which has morphed into one of the best crypto ETFs on the market since its inception.
(BLOK) is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies. It trades right at net asset value, meaning you don’t have to pay any premium whatsoever.
(BLOK)’s biggest two positions are Bitcoin proxy MicroStrategy (MSTR) and a Canadian crypto mining company called Hut 8 Mining Corp (HUT), which has already tripled since June.
I have already shot out a MicroStrategy (MSTR) trade alert to new readers and am incredibly bullish on the company.
However, this ETF encompasses more than (MSTR), offering broader exposure to firms related to Bitcoin, crypto miners, and software companies that are heavily into crypto.
Hut 8 engages in industrial-scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta, and 56 BlockBoxes in Medicine Hat, Alberta.
BlockBoxes are one of the most powerful and cost-effective bitcoin mining units available on the market.
(BLOK) doesn’t track bitcoin 1:1, but it does mimic the price action relatively closely albeit with less extreme swings.
Controlling excess volatility is something you should be happy about.
(BLOK) also has an expense ratio of only 0.71%, which isn’t too expensive for those who want to buy and hold the ETF and not trade the derivative.
Buying (BLOK) is most likely the best way to ensure safe trading under the framework of the SEC, but I understand others have a higher risk profile which is also welcome.
To understand more about the ETF (BLOK), click here.
Here are the specific trades you need to execute this position:
Buy to Open 38 December 2021 (BLOK) $47 calls a.….………$8.80
Sell to Open 38 December 2021 (BLOK) $50 calls at………....$6.20
Net Cost:……………………..…….………..………...................….....$2.60
Potential Profit: $3 - $2.60 = $.40
(38 X 100 X $.40) = $1,520 or 15.38% in 18 days
If you are uncertain on 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.
